So, you’ve finally started gaining some momentum with your business. Your sweat and tears are finally paying off, sales start ramping up, and you’re developing a solid rhythm. Should this keep up, the possibilities are endless, and sky’s the limit, you’re thinking.
And it’s true — if you stay focused, don’t overreach and keep doing what works and eliminating the stuff that’s holding you back, you will keep growing. The biggest problem that at this stage, many entrepreneurs get overwhelmed with all of the new possibility opened up before them. They get overconfident, submitting to their hunger for more, which leads to foolish decisions, loss of focus, and a pivot in success.
One of the most common traps is the lure of taking advantage of ‘new’ business possibilities. Everyone starts offering you collaboration opportunities, and all those projects that were sleeping in your drawer suddenly start looking attractive. You want to diversify your portfolio, reinvest your profits and accelerate your growth as an entrepreneur.
However, there are several factors to consider before making a side-project decision:
1. How Much Time, Money and Energy Will It Require
At any point of running your business, you want to evaluate the opportunity cost of every decision you make, which is basically saying “What else I could invest my time, money and energy into?”
Many times, it seems like putting your resources to use is always better than saving them for later. However, this is not the case 100% of times.
Think long and hard whether the new investment is absolutely the best thing you could be doing right now. Perhaps other, better opportunities could arise shortly? In that case, it might make sense to hold on to your money and not make the decision right away.
2. Is It In-line with Your Long-term Goals?
For many entrepreneurs, their main project is something that is directly tied to their long-term vision of life. Some value the ability to work from any point on the planet, so they build businesses based on digital contracts and virtual workplaces.
A side project means that you want a branch in a different direction — otherwise, why not just invest into your main venture? Therefore, you need to make sure the side project contributes to achieving your main life goals, and isn’t just a temporary distraction.
3. How Can It Be Done Most Efficiently?
The definition of side project suggests that you don’t want to be diving head first, and want to keep this a secondary priority.
To have your project run successfully without commiting to it full-time, you’ll need to become good at delegating. The key will be not just delegating the employee work — it will be delegating management. You’ll need to find people to help you run the whole hustle, so that you can spend as much time as possible at your main company.