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How to Expand Your Business Portfolio

In the early days of your entrepreneurial career, running one business is probably about as much as you should have to handle. But as you gain experience and expertise, you may want to expand your business portfolio to contain more than just one business. When this happens, you want to make sure that you are expanding in a way that is manageable and will help you to reach your long term goals.

Look at Undervalued Opportunities

One great way to start expanding your portfolio is to find opportunities that aren’t being valued the way they should be. This can give you a chance to get in on exciting businesses without overspending. As Hennessy Funds points out, to evaluate the value of an opportunity, you want to look at the current earning and potential. It’s also important to look at the costs and potential projections. Sometimes businesses don’t know what they have and that can lead to them being undervalued. There is always risk involved but if you can determine that an opportunity is undervalued, you should go for it.

Buy a Franchise

Adding another business to your list is always going to come with challenges, but if you go with a franchise, you have less to worry about. Since a franchise will come with automatic brand recognition, you don’t have to work as hard to establish your new business. According to Franchise Gator, some franchises have in-house funding options so you can avoid going to a bank. It’s important that you get a full view of the responsibilities you will have with your new franchise and any regulations, so you can make things easier on yourself and avoid signing up for something you don’t actually want.

Grow What You Have

You can also expand your portfolio by focusing on growing the business you already have. You can add locations, start doing more online business, or even franchise out your business name. With any kind of growth, you always want to do your research first and take things slowly. That way you can handle the rate of growth and make sure that your business is moving forward in a way you like.

Your business portfolio is a big part of how you are able to make money and stay invested in your work. As you expand your portfolio, it is important to take your time and make sound decisions. You can always talk to mentors and friends to see what they think about your new move before anything is set in stone.

Read this next: How to Reach Financial Independence and Retire Early

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