<p>&nbsp;</p> <p>Recently, I came away from a situation where I had to end a business venture, because I wasn't ready to start a new business. What I realized from that situation was that what I really needed to remember was an important lesson of knowing when to start a new business, which can only occur when you've sufficiently automated what you're already doing so that it only takes a small amount of time each week. If you try to start a new business before that time, you will likely feel overwhelmed by everything on your plate, because you will still be dealing with your old business as well as the new business.</p> <p>I'd actually learned how to do this, when I first started my coaching business. At the time, I was working a fulltime job and also working as a managing editor for a small press. I couldn't change the time I put into my job, but I could change the time I put into the editing position. I did that by shifting the majority of actual editing work to other people who wanted to edit for the press. I also significantly cut down on the other commitments by setting clear guidelines on what I expected people to contact me about.</p> <p>However, what I've learned since then is that it takes time to automate a business. I could automate my editing position because I'd already been doing it for five years. I've only been running my coaching business for a little over a year, and stepping into another business was a bad idea when I'm still in the midst of finding my footing with this business. I have managed to automate some of what I'm doing and have plans to automate it further as more income flows in, but I also have to recognize my limits.</p> <p>So when is starting a business too good to be true? One sign it might be too good to be true is if you think you can automate it right from the start. Any type of business, even one where you are an affiliate, has some kind of learning curve involved. And even when you get training, you still need time to assimilate that training and get comfortable with the business you are getting involved in.</p> <p>When you think you might want to start a new business, figure out how much of a time commitment is involved and then double that estimate to account for the learning curve. Compare that to time you already are spending on other business ventures, as well as leisure, friend, and family time. If it looks like your new business will significantly impact your existing time commitments, ask yourself if you are comfortable with that and how you will adjust your current time commitments to enable you to pursue the new business. Write all of this down on paper, and look at it again, in a couple of days. If you still feel it's doable, then consider going ahead with your new business.</p> <p>A second sign that it might be too good be true is if you'll have to commit more resources to it than you have available. Just as you only have so much time to give to a new venture, you also have only so much material wealth and resources to give to a new business, especially when you already have an existing business that may also require a steady source of income. I was able to lessen the amount of time I spent on the editing position, because all of my income off of it is based on royalties and is sufficiently automated that I need to do very little with it, beyond doing the occasional editing job to add to the royalties I'm already accruing.</p> <p>If you find that you have to divert a lot of your material wealth to starting up a new business, make sure you run the numbers carefully and look at how it will impact your budget and/or lifestyle choices. Also run the numbers by a few other people, to see what their input is. Those people can be a bookkeeper/accountant, but also should include your family and anyone else you may trust. Why you want to do this, is to see what objections, questions, etc., they will raise. Treat each comment with respect and do your best to answer these. Remember that most of these people will be effected by your choices. And, once again, come back to the numbers a couple days later and crunch them again and see if you add or subtract anything.</p> <p>Spending time doing your research and due diligence on a potential new business venture can save yourself and others a lot of time and effort. It can also help you determine if you're ready to start a new business or not. And if you aren't ready and you can acknowledge it, give yourself a pat on the back for recognizing it and being able to keep your life less complicated. If you do get involved in a business venture, and you aren't quite ready to fully pursue it, be honest about it, and do your best not to burn bridges. If you do this early enough, the people you were potentially going into business with will probably understand and be graceful about it. What's most important is you honor your boundaries and your abilities when it comes to setting up a new business. Better to realize that you're stretching yourself thin and stop it early, than to continue doing it and have everything collapse on you.</p> <p>&nbsp;</p> 2009-06-10T05:30:38Z -6.60351 485 4944 true 1 14192 is-it-too-good-to-be-true-knowing-when-to-start-a-new-business 11 2009-06-10T07:32:39Z 2009-06-10T14:33:06Z

Sometimes starting a new business venture when you already are running other businesses isn't such a good idea. Knowing when to start a business is as important as being able to do it.

1 2009-06-10T14:33:07Z