Stabilize your business before starting another one — John Doherty of Credo ($45k/mo) and EditorNinja ($4.5k/mo)
Is there ever a convenient time to start a business? Or a second business, for that matter?
I recently started a project, and it didn't seem like a good time to start, but I just did it anyway. Then I spoke with John Doherty (@dohertyjf) and something stuck with me:
There's never a good time to start something like a new business. There are just those of us who don't let that hold us back.
John's main business is currently making about $45k/mo, and now he's building another one too. He told me how he did it, and maybe more importantly, when to do it. 👇
On why he started a new project when his first one is doing so well
John: It's been fun to get my hands dirty on something that doesn't have technical debt. Quite honestly, I was feeling super unmotivated on Credo and wanted something new to sink my teeth into.
I started Credo in 2013 and went full-time on it 7 years ago today. It's a marketplace that helps brands find the right digital marketing or development agency to grow their businesses. And it currently averages about $45K per month.
Then I started EditorNinja in 2020 because I had a need for an editor myself and I knew a lot of editors were out of work because we were early in the pandemic. I figured I could help them make some money. What I didn't realize was how much work Credo was going to need at that point to stabilize it and coast through the pandemic relatively unscathed.
EditorNinja started growing in late 2021, so I've been putting more time into it. It's at about $4.5K per month.
On growth, and how side-hustles benefit from main-hustles
John: My businesses mainly grow through SEO and content marketing — mostly blogging and creating pages around the main services that we offer. I distribute content and tell the world about what we do through being a podcast guest on a lot of shows. We also do some Google Ads, which has been profitable for both brands.
In addition, we have a weekly agency email within which we often promote EditorNinja.
So, EditorNinja has benefited from Credo, but not vice versa.
Two tips for starting business #2
John: Running multiple companies all comes down to time and energy management.
Focus on the one that brings in the most revenue until you have a team mostly running that business, then you can put more time into the smaller one.
It is easier to run multiple companies when they both serve the same customer. We serve digital agencies at both companies. People like Pieter Levels serve remote workers.
Pick one customer and build multiple things for them.
On the schedule that allows him to run 2+ businesses at once
John: My Mondays are mostly dedicated to internal Credo stuff. Tuesdays and Wednesdays are for external calls for either Credo or EditorNinja. Thursday is mostly for EditorNinja. And Fridays (if I work them), are varied depending on what the week held for me to that point.
I also block off 4-5pm every Monday through Thursday to just focus on EditorNinja.
I would say I spend 60% of my time on Credo, 30% of my time on EditorNinja, and 10% on other projects. If I'm working in the evening I'm mainly working on EditorNinja, simply because there are more things that need doing.
On the ups and down, and why building businesses at different stages is hard
John: I like that my days are varied. I get to work on both managerial-level things at one business and deep in the weeds on the other.
But that's also the hardest part. My day is varied and there is a lot to do!
And I find the discrepancy between one larger business and one smaller business to be mentally challenging, as I can't expect out of the smaller brand what I expect out of the bigger one around growth, team, maturity of offer, customers, and so on.
On whether running two businesses is sustainable long-term
John: It's not easy to do. It requires a lot of focus on each when you're working on them. You'll probably work more evenings than when just running one company.
At this point, I can continue running both indefinitely, but should EditorNinja or Credo really grow faster, then it wouldn't be sustainable long-term.
Starting a second business has been all about reclaiming my energy and my zest for shipping new things. But it's also to see if I'd want to work on this specific business in a more full-time capacity in the future.
If so, the two options really are to sell Credo or hire a strong operator. I'm open to both options.
On the right time (and right reason) to start another business
John: Think hard about it, and make sure you are not doing it simply because you are bored, or because you're in the middle of something big and it feels hard. You don't want to be distracted and starve both businesses of growth. It's better to push through that hard patch or figure out how to make your current thing less boring.
Only once you've stabilized that first business and have a team running it, including an operator with strong business ops experience, should you look to start another business. Looking back, I would've cemented having a strong operator and strategist at Credo before working on EditorNinja more.
But there's also never a good time to start something like a new business. There are just those of us who don't let that hold us back.
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Big dilemma on whether to jump in and test ideas versus cooking too many eggs instead. of focusing on one.
I like the idea of building an ecosystem around your main money earner. Maybe people would bring up diversification and not "putting all your eggs in the one basket", but, the upside of going within the same niche is the already established networks and the domain knowledge you have gained and possess at this point in time.
Totally agree, I think it's a wise move to build an ecosystem around the main source of income. It not only leverages the existing networks and domain expertise, but it also enables the possibility of greater returns in the long term. Of course, diversification is important, but focusing on what we already know and have established can bring many benefits.
This article is a treasure trove of insights on running multiple businesses simultaneously. John's experience sheds light on the challenges and strategies involved in managing different ventures. It's a goldmine for anyone considering a second business!
This advice is timely and pertinent to the current AI environment. This helps me deal with FOMO, and also provides a good framework on approaching an AI project.
Great insights! I'm running two businesses in parallel and it's not EASY to keep focus..I do believe that it's helpful to get confidence in one first and then scale to another one
I'm not a fan of doing several things at once.
We humans are simply not made for that. Personally, it also puts me under stress, working on several things at the same time, multitasking is really not my thing.
$45k per month is already great, and a good starting point to make $450K per month.
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First time founder here, I've recently gone full time into my side project turned business, averaging around $4k/m, and through this journey started 2 other projects/products.
We're validating if there's a market for it (without spending too much time and other resources).
Context switching and dividing your focus is hard. I think getting a good team around you is essential. I wonder if I could ever hire someone to replace me, especially if I do not generate more revenue.
So far I'm dedicating 70% on the main business, and rest of 30% to exploring. I think it's important as all lessons can be tied back into the main biz.
Thanks for sharing, and kudos!
I saw people starting 4-5 products at a time to check which one hits.
I understand you want to succeed first, but in this process maybe all of your products are incomplete or have bugs.
Instead of jumping to 4-5 products, start investing on research 10-15 ideas, and them jump into 1-2 solutions at a time.
Absolutely agree! Balancing two businesses is like juggling, and focus is the key ball.
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Thanks I like that last sentence
Think hard about it, and make sure you are not doing it simply because you are bored, or because you're in the middle of something big and it feels hard. You don't want to be distracted and starve both businesses of growth. It's better to push through that hard patch or figure out how to make your current thing less boring.
Awesome! I can relate with a lot of tips here. It's more of an acknowledgement of my experiences too. Thanks for sharing.
100% have to agree - have built many times over and the problem most of the time tends to be exactly what you said.
very helpful article, thankfully I got to know it early, thank you very much
Offers a practical and realistic perspective on starting and managing multiple businesses. Very helpful indeed. Thanks.
John's success with multiple businesses shows that with careful time management, focus on revenue, and serving the same customer, it's possible to thrive in multiple ventures.
very properly written article, cheers!
I absolutely love that line of waiting until you have someone running it "including an operator". When I sold left my last business to my partner, we didn't have good GM in place and everything went to sh*t.
If I could do it differently I would just pay more to have someone great keep it going.
Sorry to ask, but what are you referring to as 'GM'?
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Building a strong foundation for your business is critical to achieving long-term success. This involves establishing a clear business plan, developing strong financial systems, and building a loyal customer base. While the idea of starting a new business venture may be exciting, it's important to stabilize and grow your existing business before pursuing any new opportunities. By doing so, you'll be better equipped to expand and diversify your offerings in the future while leveraging your existing customer base and brand recognition. Focusing on building an ecosystem around your main money earner and developing multiple products or solutions for one product can also be effective strategies for growth. However, it's essential to avoid spreading yourself too thin and prioritize building a solid foundation before pursuing any new ventures.
As a product marketer, I would say that John Doherty's advice to stabilize your business before starting another one is crucial from a marketing perspective as well. It's important to establish a strong brand presence, build a loyal customer base, and create a solid marketing strategy before expanding into new ventures. By focusing on the core of your business and perfecting your messaging and branding, you'll be better equipped to effectively market any new products or services you may offer in the future. Additionally, expanding your current business through diversification can be a smart marketing move, as it allows you to leverage your existing customer base and brand recognition to promote new offerings. Overall, taking the time to stabilize and grow your current business before starting a new one is a wise marketing decision that can lead to long-term success.
love the annotation "Build multiple products/solutions to one product", upsell and cross sell becomes easier.
Starting a new business venture can be an exciting prospect for entrepreneurs, but it's important to remember that success requires a strong foundation. This is why the advice to stabilize your business before starting another one is so crucial.
When you're just starting out, it's easy to get swept up in the excitement and energy of launching something new. However, it's important to focus on building a solid foundation for your business before you even think about expanding.
This means taking the time to develop a clear and comprehensive business plan, establishing strong financial systems, and building a loyal customer base. Without these elements in place, you'll be setting yourself up for failure, no matter how great your new idea may be.
Of course, once your business is stable and profitable, there's nothing wrong with pursuing new opportunities. In fact, it can be a great way to continue growing and expanding your brand. But by taking the time to stabilize your business first, you'll be setting yourself up for long-term success and avoiding the common pitfalls that many entrepreneurs face.
juggling multiple businesses can be challenging, so it is important to ensure that the reason for starting a second business is not due to boredom, distraction or feeling unfulfilled
Always interesting to me how much money there is to be made in just connecting people.
Both businesses are just built on the idea that finding the right person is hard. No product, no direct fulfillment from the business.
But still getting over the hurdle of chicken and egg problem at least creates a bit of positioning in the market. Have to find the editors/agencies to be able to attract the people looking to hire, and need people looking to hire to attract the editors/agencies.
Thanks for taking a look into all this James.
Having several business verticals from a parent node is a blessing for the other upcoming ones. A Founder just needs to manage their time properly !
Great insight, John! I can relate to the feeling of wanting to start something new to reignite motivation and passion. It's definitely a challenge to manage two businesses, especially when they are at different stages of growth. Your strategy of focusing on the one that brings in the most revenue and building a team to run it while also dedicating specific times to the smaller business seems like a smart approach. It's also interesting to hear your thoughts on the potential options for the future - whether that's selling one business or hiring a strong operator. It's always good to have a plan in place and be open to different possibilities. Thanks for sharing your experiences and advice!
Selling multiple products to the same customer is actually a great idea. And it's used by lotta companies around the world with absolutely different products. Be it cosmetics, clothes, or digital products.
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Great article. Currently, I run a boutique marketing agency and working on launching 2 SaaS products with other cofounders.. I find it really difficult to stay focused on all 3. Either I get really excited and focused on one or just do not have time to manage it all 3.
Do you use anything to keep yourself on track with progress?
I love the idea to allocate a day for working only on 1 project or company!
Do you always stick to your weekly schedule? Or is it mainly just a framework to work towards? Thanks!
Nice
This is such an excellent article that I was looking for. When building worklenz, I always get ideas for other products.
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I love this, although there could be some nuances to be considered in my experience.
I am founder of a VC funded Startup Glorify.com, currently around 80K ARR.
It's a design tool, and it's super hard to grow revenue for a desktop design tool especially without a mobile app version with such powerful free options around. It has a huge vision; We're building the ultimate design tool that sits between the extreme complexity of Adobe and super basic-ness of Canva. So it's perfect for professional designers that want to harness pro tools yet super easy for non designers too.
We have a fixed runway, and not revenue positive yet to sustain our team, so we launched a second high ticket business in a similar space called Together.Design - Uber for UI/UX designers, startups can hire product led designers for an affordable subscription.
It's growing MRR much faster than our main startup (10K+ MRR in month 1), it's our hope to sustain our overhead and have better conversations in our monthly alignment calls with investors.
So sometimes a second business could be a great option to make the first business survive. I know AirBnB did this by selling rare collectible Cereal boxes!
Very true!
That side-hustle is a successful product in its own right - congrats!
This right here is such good advice: "Pick one customer and build multiple things for them." Thanks!
Thanks! It’s how I’ve seen people who are successful starting multiple companies have the best chance at succeeding.
@dohertyjf what are your thoughts on automation? Can you automate a business to the point that it's safe to start another business?
Super hard to do, but doable I guess. I think it is probably easier to plug in people to handle a lot of it, instead of software, but I am all in favor of eliminating anything that doesn’t need to be done, automate what you can, and hire for the rest!
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