If you’re a business owner in Edmonton, you may find yourself with a taste for more. Many people who have invested in one business find themselves interested in investing in multiple businesses— and not necessarily under the same brand! You see this a lot with companies like Meta or Yum! Brands: a collection of companies that are connected but not the same. Another well-known example is how Donald Trump has expanded beyond real estate, trying new ventures like modeling agencies and reality television— even non-successful ventures like entertainment resorts and a university.
Business investment is all about risk. Not everything will pan out, but failure is just another chance to learn and grow. If you’re interested in growing your business profile in Edmonton, there are three strategies you can choose from to do so.
Strategy One: Buy A Pre-Existing Business
There are various reasons someone may be looking to sell their business. It may be they want a change of pace or are ready to retire. Perhaps they’ve found the industry isn’t for them, but the business is on a successful path. Whatever the reason, their sale is your gain. When you purchase a business, you don’t have to deal with establishing the brand— though you may need to transform it if the business is struggling.
It can also be easier to step into a new industry if you work with an established business. It’s a less steep learning curve, and you can rely on staff to help you learn the industry and make suggestions for improvements.
First, you want to know what kind of business you are interested in. You can find plenty of restaurants for sale in Edmonton if you want to try your hand at the food industry. Or you can get into owning something smaller, like a franchise, in which case you would reach out to the main corporate management for the brand.
Strategy Two: Build From Scratch
The next idea is to create your business as a start-up. This strategy means you have more control from the beginning, but it also means you have to handle everything– establishing a location, creating your brand, getting a team together, and writing a proposal for financiers. Some entrepreneurs thrive on this process, and it goes well for them! Others find it’s too much to balance between running their current businesses while starting a new venture. It varies per person, and you really won’t know until you try.
With a new business, however, you can work at a slower pace in the beginning. An established business is already operating, and you need to jump in quickly and get to know the staff to keep things running smoothly. With a new business, you can take your time exploring your options and getting started.
Another benefit to starting from scratch is you won’t have to worry about stepping on anyone’s toes. Buying a business means its staff becomes your staff, and how you get along with said staff has a major influence on how the business goes and if any changes pan out. With a new business, you are starting fresh with a team you pick by hand.
Strategy Three: Invest In Startups
If you aren’t sure you want to fully run another business but still want to grow your portfolio, consider investing in someone else’s business. Investors are generally consulted with major decisions but don’t have a hand in the everyday operations of a business. This can be risky; the success of your investment rests on the founder, not you. There are several things you should consider when deciding whether to invest. But if it works out, you can see good returns with smaller efforts than running the business yourself.
Be absolutely sure that all agreements are in writing, even if—especially if— you’re investing in a friend or family member’s business. All parties should know what is expected of them.
Choosing And Combining Strategies
Just because you choose Strategy One for your second business doesn’t mean you are locked into always purchasing other businesses. As your profile grows, you can expand in other ways. You can even start a management company to bring all of your businesses under one umbrella— you can invite any businesses you’ve invested in to join, but it will mostly be your businesses. Remember, not all investments will pan out. It’s important to consider risks and have a plan in place should a venture fail for any reason. Trial and error will help you steadily grow until your profile is as large as you want it to be; maybe you will stay in Edmonton, or maybe you will grow into a global business empire. The sky is the limit.