As a business owner, you have a ton of great ideas. In some cases, though, you may be interested in exploring some of them after ensuring the success of your first company. After all, you were able to make it work the first time, so why not strike while the iron is hot? With that in mind, let’s go over some tips on adding a new business while you are currently managing one so that you don’t get overwhelmed and wind up ruining both enterprises.
Keep Entities Separate
When filing for a business, you know that you have to figure out which entity type is right for you. Perhaps you want to start as a corporation, an LLC, or a partnership. Each one has its ups and downs, so it’s imperative that you understand how they work and what they can do for your company.
So, when adding a new business, it’s crucial that you maintain strict divisions between your two entities (unless one is a subsidiary of the other) so that things don’t get tangled up with each other. Even though you are the head of both, you don’t want them to mix since this could become a tricky legal situation.
Come Up With a Transition Plan
During the idea and planning phase of your new business, you can still manage most of the operations of your current enterprise without any problems. However, as things move forward with the new company, you will invariably have to spend less time on your current business, meaning that you have to spread responsibilities and ensure that things won’t collapse without your constant presence.
Overall, the best thing to do is to come up with a timeline and a checklist of items from now until your new company is ready to go. One of the most important things will be to train and assist your manager(s) with operational knowledge so that you don’t have to handle everything yourself. The more comprehensive your plan is, the better the transition will be. Also, allow plenty of time, as setbacks can happen.
In the end, whether starting an LLC or a new corporation, the key thing is to be organized and not let your two enterprises conflict with each other.