In this installment of our series on empowering business owners for what’s next, we’re taking a look at serial entrepreneurship. For some people, once they’ve built a successful business and navigated the complexities of a sale, they find themselves itching to dive back into the entrepreneurial world and start something new. Welcome to the exciting life of a serial entrepreneur! While some might be content to rest and relax after selling a business or reduce their involvement to being part of a board in the corporate or philanthropic world, many others find that the thrill of creation, the challenge of problem-solving, and the satisfaction of building something from the ground up is simply too alluring to resist.
But where do you start? How do you ensure that your next venture is as successful – or even more so – than your last? And should you start from scratch or consider investing in an existing business? These are questions that many serial entrepreneurs grapple with, and they’re precisely the kind of challenges we love to help our clients navigate.
First, let’s talk about identifying new business opportunities. As a seasoned entrepreneur, you likely have a keen eye for spotting gaps in the market or inefficiencies in existing systems. But it’s important to approach this process systematically, especially when you’re looking at industries or markets that might be new to you.
Start by leveraging your existing network. Your connections from your previous venture – be they customers, suppliers, or fellow business owners – can be invaluable sources of information about emerging trends and unmet needs in various industries. Don’t be shy about reaching out and having conversations. You might be surprised at the insights you gain.
It’s also crucial to stay abreast of technological advancements and societal shifts. What challenges are arising from these changes? What solutions are people in search of? Sometimes, the best business opportunities come from addressing pain points that people don’t even realize they have yet.
Once you’ve identified potential opportunities, it’s time to evaluate them. This is where your experience as a business owner becomes invaluable. You know how to crunch numbers, assess market potential, and gauge the competitive landscape. But it’s also important to consider factors beyond just the financials.
Think about your personal interests and strengths. Are you passionate about the problem this business would solve? Do you have the skills and experience to lead in this new arena, or would you need to bring in additional expertise? Consider the potential impact of the business – not just on your bank account, but on society. Many entrepreneurs find that aligning their next venture with their personal values leads to greater satisfaction and motivation in the long run.
Now, let’s address the age-old question: should you start a new business from scratch or invest in an existing one? Both paths have their merits and challenges.
Starting a new business allows you to build something entirely aligned with your vision. You have the freedom to shape the company culture, choose your team, and make all the key decisions from day one. It’s an exhilarating process, and for many entrepreneurs, there’s nothing quite like the thrill of turning an idea into reality. However, starting from scratch also means facing all the challenges of a new business – from securing funding (or self-funding), to building a customer base. It typically requires more time and energy, and the risks can be higher. But for many serial entrepreneurs, these challenges are part of the appeal.
On the other hand, investing in an existing business can offer a faster path to profitability. You’re stepping into an operation with existing customers, established processes, and a track record you can evaluate. This can be particularly appealing if you’re looking to enter an industry that’s new to you, as you can leverage the existing team’s expertise while bringing your fresh perspective and experience to the table. The downside is that you may inherit problems along with the business, and work within existing company culture and employee relationships. It can be challenging to implement significant changes in an established business, even as the new owner.
Ultimately, the choice between starting a new venture and investing in an existing one often comes down to personal preference, risk tolerance, and the specific opportunities available to you. And here’s where working with an advisory firm like Align can be particularly valuable. At Align Business Advisory Services, we’ve guided numerous serial entrepreneurs through this decision-making process as they consider their next steps. Our team will work with you to ensure you’re prepared for the next step you take after an exit, and ensure you have the comprehensive information you need to make an informed decision. Moreover, we can connect you with other serial entrepreneurs in our network who have navigated similar transitions. Their insights and experiences can be invaluable as you chart your course forward.
Remember, being a serial entrepreneur doesn’t mean you have to go it alone. In fact, many of the most successful serial entrepreneurs we work with recognize the value of having a trusted advisor by their side. Someone who can provide objective advice, challenge your assumptions, and help you avoid potential pitfalls. And, as you embark on your next entrepreneurial journey, take the time to plan carefully, but don’t be afraid to trust your instincts. The same drive and vision that led you to success in your previous venture will serve you well as you build your next business empire.
Whether you decide to start from scratch or invest in an existing business, remember that your experience is your greatest asset. You’ve been through the highs and lows of business ownership before. You know what it takes to succeed. Now, it’s time to take those lessons and apply them to your next great adventure.