Parallel Universe A new kind of entrepreneur boldly goes where few business owners have gone before.

What do you do when one business isn't enough? These twoentrepreneurs started one business, then almost immediately beganlooking for their next.

Karen McMasters is president of Bare Babies Inc., a$2 million online baby products business she launched on Yahoo!Stores in February 2000. Three years later, she started AllCola.comwith her mother, a lifelong collector of Coca-Cola memorabilia. InJanuary 2004, she debuted Ciao Bella Baby to leverage her success withBare Babies and attract a higher-end customer. In 2004, sheprojects sales of $60,000 for AllCola.com and $1 million for CiaoBella Baby.

McMasters, 40, says one main benefit of having more than onecompany is diversification. "It's comforting to have avariety [of businesses] and not put all your eggs in one basket. Itkeeps life interesting."

, 37, started $10 million, Dallas-based Brinson BenefitsInc. in 1996 to administer employee benefits to midsize companies.She started COBRA Charmers three years later when she realized manyof her existing clients were not in compliance with COBRAregulations; today, COBRA Charmers makes almost $100,000.

While serial entrepreneurs tend to get more publicity, McMastersand Brinson-Roark are examples of a new breed of "parallelentrepreneurs." "A parallel entrepreneur can't anddoesn't wait to finish one startup before conceiving andlaunching other ventures," explains Dr. Debra Condren, founderand president of Business Psychology Solutions, a coaching and businessconsulting firm with offices in New York City and San Francisco. Aserial entrepreneur, like a parallel one, may get bored working ononly one business idea but is more inclined to fully exit a priorventure before moving onto the next one.

Based on her surveys of business owners, Condren notes thatparallel entrepreneurs are more common in the service industry andamong consulting businesses. Based on McMasters' example,certain Internet-based businesses-particularly those with lowstartup costs-can also be ideal for parallelentrepreneurs.

Both McMasters and Brinson-Roark acknowledge benefits tobuilding more than one company. COBRA Charmers has supportedBrinson-Roark's first company through money crunches."Brinson Benefits has a long sales cycle, and our cash flow ishit hard the first year we take on a new client," explainsBrinson-Roark. "COBRA Charmers' fees are collectedannually, in advance, thus improving cash flow."

For McMasters, starting AllCola.com was a way to help her motherretire while allowing her to generate income doing something sheloves. She started Ciao Bella Baby partly to address an issue withher first company-because of the word "bare" inBare Babies, some of her potential customers with child-protectionsoftware couldn't access her site. "It was years before Irealized [the domain name] was a potential problem," explainsMcMasters. "After establishing the brand name and the customerbase, I decided the risks and hassles of changing the business namecould cause more harm than good." A new company helped make upfor any losses.

Brinson-Roark was initially concerned that starting and runninga second company would diminish her original company's focusand that she had underestimated the investment another venturewould require to be successful. With improved cash flow andstronger ties with her customers, however, she feels her businessdecision was sound. She'd even consider starting a thirdcompany if the right opportunity presented itself. Brinson-Roarksays, "I'm willing to take calculated risks."

Would McMasters and Brinson-Roark recommend starting multiplecompanies to other women? "Absolutely. Go for it!" saysMcMasters. "There are fewer challenges when startingadditional businesses-you know what steps need to be takenand in what order." With a parallel business, she points out,you can also leverage established customer relationships and creditreferences.

Brinson-Roark agrees. "Starting a second business is easierthan the first. You'll know more of what to expect, andyou'll be more realistic in your goals."

Aliza PilarSherman is an author, freelance writer and speaker specializingin women's issues.