While many small business owners struggle to keep a single business on their feet, others have already understood that diversifying can be the key to growth. The most common mistake is believing that expanding requires a big initial capital, when in fact, the right strategy is worth more than any investment. Raphael Mattos, entrepreneur, investor and franchise specialist, explains how small business owners can multiply their sources of income without compromising the original operation and why those who do not learn this logic, run the risk of being left behind.
“Entrepreneurship in series is not the luxury of those who have money left over. It is survival for those who want to continue in the game. Those who bet everything on a single business run the risk of seeing years of effort fall apart in the face of a crisis, a change in the market or a more innovative competitor. Companies at the same time, but rather structuring an intelligent model where one business strengthens the other, creating an ecosystem that feeds back and grows in a sustainable way”, says Mattos.
The owner of a car wash that realizes the growing demand for automotive aesthetics can add this service without major investments. The small restaurant that has loyal customers can launch a line of frozen foods or sell exclusive seasonings. The barber who understands what his audience consumes can create his own brand of men’s products. The manicure that retains customers can offer online courses on stretching techniques. The owner of a stationery can add fast printing services and on-demand printing. In all these cases, the secret is not to open a new business from scratch, but to take advantage of the existing clientele and structure to generate new revenues.
“Every small businessman needs to ask himself a question: am I selling everything my customer could buy from me? Many entrepreneurs limit their earnings because they don’t realize that the person who already trusts the service or product is willing to consume more. mattos.
Another essential strategy for undertaking in series without taking risks is the decentralization of the operation. Small entrepreneurs who centralize everything in themselves end up becoming the biggest bottleneck of their own growth. To scale, it is necessary to build replicable processes, delegate tasks and create a system where the business works without the owner having to be present all the time. “If your venture depends 100% on you, it is not a business, it is a disguised job”, warns Mattos.
In addition to the diversification of products and services within the same business, there are opportunities for expansion in models such as licensing and simplified franchises. Many small entrepreneurs already have successful operations that could be replicated in other locations, with a much smaller investment than imagined. The big difference is in the structuring of a model that can be followed by third parties without compromising the quality of delivery.
“The mentality of the small businessman needs to change. Many think that entrepreneurship in series is a thing for millionaire people, but in fact, they are the little ones who benefit most from this strategy. market”, concludes Mattos.
