Diversifying Your Business Portfolio - How and Why

Business ownership is on the rise in the United States as Americans look for ways to prioritize their time, resources, and financial freedom. Over the last 25 years, nearly 13 million jobs have been created in the U.S. through small businesses. Most of those businesses were founded or created by solo owners. As more individuals pursue franchise ownership—some for the first time—the more experienced owners are increasing their number of units or diversifying with new brands.?

Franchising is one of the fastest-growing options for business ownership and is projected to add approximately 221,000 jobs in 2024. Franchise ownership provides opportunities for diversification in numerous ways, such as multi-unit ownership or the introduction of new brands in various industries. Multi-unit ownership or multi-brand ownership by diversification isn’t for every owner, but for individuals with the right team, resources, time, ambition, and knowledge, it can be a rewarding entrepreneurial path.?

Owners might be wondering where to start and what it takes to step outside of their business ownership comfort zone. Here, BRIX Holdings LLC, a parent company to eight different franchise brands, including Clean Juice, Friendly’s Restaurants, and Orange Leaf, offers its perspective on the benefits of diversifying your business and identifies the steps to get started.?

What is diversification and why does it matter??

Franchise ownership diversification involves strategically exploring unique opportunities across various industries and investing in those businesses to drive revenue growth. In franchise parlance, this is known as “multi-brand” ownership, and it is a strategy among investors to avoid putting all of their faith into one venture. Investing in different business opportunities opens new paths to potential success. Because there are so many different types of franchises, small businesses, and investment journeys, diversification can help balance investments by providing risk reduction, opportunities to leverage investments, cross-promotion, and key market insights.?

Benefits of Diversifying Your Portfolio?

1. Risk reduction
2. Investment leverage
3. Cross-promotion
4. Market Insights

Things to Consider When Diversifying Your Portfolio?

Here are some tips for determining how to best diversify a portfolio:

1. Identify synergistic brands
2. Explore a variety of industries
3. Focus on operational models
4. Grow where you know

Diversify Your Franchise Options

Diversifying your portfolio through multi-brand franchising offers significant advantages to owners, such as risk reduction, market diversification, cross-promotion, investment leverage, and other operational efficiencies. By carefully considering brand synergies, operational experience, industries, and market conditions, franchise owners and investors can successfully navigate the journey to diversification.

BRIX Holdings is a portfolio franchisor with a variety of quick and full-service concepts that cater to a diverse demographic of consumers with strong business models. Our brands offer a variety of territories across the United States and model options to support your entrepreneurship goals. Our brands have years of experience in business and are backed by our esteemed team of executives, who will provide the support and resources necessary to grow as a part of their strong franchise network.?

If you’re interested in learning more about franchising with the BRIX brands and the available franchise incentives, visit:

Clean Juice: https://cleanjuicefranchising.com/

Friendly’s: https://www.friendlysrestaurants.com/franchise/

Orange Leaf: https://www.orangeleafyogurt.com/franchising

Red Mango: https://redmangousa.com/red-mango-better-for-you-franchise/

Smoothie Factory + Kitchen: https://www.smoothiefactorykitchen.com/franchising

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For more information about BRIX Holdings, visit our website.