Is it wise to buy multiple businesses at the same time?

September 13, 2023

by a searcher from Xavier University of Louisiana in Houston, TX, USA

I own a small medical supply store in Houston, TX and I have an opportunity to buy a hardware store in Houston, TX. Both have store managers and I'm not the type to micromanage but can one manage 2 stores at opposite ends of the city at the same time? What are the pros and cons?

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Reply by a searcher
from Pontifícia Universidade Católica de Campinas in Itatiba, State of São Paulo, Brazil

You can buy multiple businesses if you have a system and SOPs that you can put in place from day 1. If the businesses are operated similarly, it will be easier for you to manage and make both of them grow. Think about the investors in Shark Tank. They usually only invest in businesses that they have a roadmap to make them grow. The roadmap includes systems & expertise in the field. Like this, the sharks almost have an assurance of success for the business they invest in.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I concur with what has already been said. You need to have good managers in place to help you if there is a distance to both locations and you cannot reasonably be onsite every day. It is always harder when they are separate industries as well because you have to approach each a bit different when it comes to marketing and management. You just need to be comfortable that you can flip between the two businesses.

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