Attaining a certain level of success in your business life has some natural consequences.
Fulfillment is one, of course, and as is pride in your accomplishments. So is that itch that probably drove you to starting your venture in the first place. Maybe you have long-term goals that require some next steps, or perhaps you want to expand your team or diversify your revenue streams with a new acquisition.
If you have started to consider acquiring a new business, here are some signs you should look for to confirm that your timing is right
1. What is the state of your current business?
Is the business you are running now profitable? Is it running like clockwork? How is your team functioning? Is your team strong and independent, ready to take over operations while you’re distracted by creating something new, or does it require a high level of oversight?
Before you can jump back into the full-time responsibility of acquiring and running a new business, you have to be confident that you are leaving your first endeavor in great hands with self-sustaining processes that will ensure continued success. If any of these factors is a bit weak, you truly need to make adjustments before considering a change.
2. Have you done your research?
Before introducing a new product or service into your market, research is required to ensure that your new direction will meet a need and actually sell.
Approach your possible acquisition like you did (or should have) with your first business. Evaluate your market and determine who your prospective customers will be. Look at your competitors and reflect on their relative strengths and opportunities for growth. Listen to reviews and investigate potential partnerships.
All of this research will help you make a wise choice and hit the ground running.
3. Have you honed your time-management skills?
If you thought operating one business could be time-consuming, imagine what it’s like running two!
Great systems and best practices are life-saving when it comes to managing your time.
Think of the systems you have in place--or that you should put into place already--and consider how you can apply them to a new acquisition. Use business-supporting apps and software to improve your efficiency. When all is running smoothly and timely, you’ll know you’re ready for something new.
Equally important is making sure that your heart is in the right place. Are you running towards something or running away from something?
If you love your current business but have an insatiable craving to explore new frontiers, you may very well be ready for a new acquisition.
Be smart, take the temperature of your current environment, and honestly evaluate how prepared you are. Once you are convinced, go ahead and take the plunge! Your business life will certainly never be the same!
Kevin Dennis is the editor of WeddingIQ and owner of Fantasy Sound Event Services, a full-service event company based in Livermore, Calif. Dennis is the current chapter president for Silicon Valley NACE and a past national president for WIPA.