Risk management is the key factor I would try to gauge before picking between working on five $1 million business ideas or just one $10 million business idea.
A promising, well-established $10M idea that’s easy to get into, hire for, and get funding for will be my preference. Managing one business is easier and all operational expenses are handled with less hassle.
The 5 ideas may be in different segments, some brick and mortar and some high tech, some selling products on-site, and others B2B services.
While diversification is safer if you’re unable to aggregate administrative services, leverage hiring activities across different portfolio companies, and use strategic management know-how in several places at a time, you won’t have the time to properly develop and execute the right strategy (starting from scratch).
How about you? Which of working on five $1 million ideas and just one $10 million idea would you prefer?
