4 Signs You’re Ready to Move On to Your Next Product, Project or Company- Valutrics

Managing a single company doesn’t seem to be the go-to model anymore — probably because the digital market shifts so fast, and there are so few barriers now to putting a team together around a good idea. What excuse would you have for standing still anymore?

There are a few ways you can know if you’re ready to start your next company — or just a big new project within it.

Here are the ducks you may want to have lined up before you start something new.

You’ve Stabilized Your Current Business

Starting a new company when your first one is giving you cash flow problems is not a good idea. Starting a second business is always risky, and you always need to be prepared for it to fail if you’ve underestimated your commitment or energy levels. For that reason, make sure company No. 1 is super healthy, especially from a financial perspective.

You’ve Mastered Your Process

This is what managing multiple companies is about, and in my opinion, what managing a single company is all about: simplifying and optimizing the path from any task your business performs to the profit. All of my businesses are collections of processes that I’ve mostly developed myself and then released to my team members to further optimize. These processes provide consistency, accountability and measurability for almost everything we do.

When you’ve created strong processes, they can continue to provide momentum even after you leave. This is an especially important freedom to have when you’re interested in building a second company. Of course, the processes alone are worthless if you don’t have a team that cares about them, nor has the expertise to help you make them better. Remember: Process and delegate, but always verify.

You’ve Built a Solid Team

In order to safely start your second company, you need to have already created a team that can operate without you. Founding a new company doesn’t always mean that you’re not still managing the first. Now that you have two, you may need to be working more closely with one over the other. That’s why you need to be able to trust at least one of them to perform well in your absence.

It’s never going to be easy to find a team that you can trust with this level of responsibility, but that’s why the processes are so important. Successfully creating a stable and reliable team at your first company is a strong clue that you’re ready to handle the next.

You’re Stuck Not Doing What You Do Best

One of the most important signs that you’re ready to start a second company is that you keep finding yourself stuck not doing the things you do best. The early days of a company — that struggle and climb — are what I live for.

I know I’m not at my best at the stage when it’s just about maintaining what already works. You may be driven by something else, but whatever it is, that’s the position you need to be in as often as possible.

Remember, You Don’t Have to Feel Ready

Starting a new company (especially when your first one is healthy) is a scary thing. You may not feel ready even if the time has never been riper. Sometimes, you just have to look at the data and take that leap of faith.

If you’ve got a stable company, with strong processes and a capable team, you’re ready to give it a shot — and to get back to doing what you’re best at.