Awesome! Answered my questions too! I had 3 ideas (consulting, more contracting/construction, and education) and will drop the middle one. In the future once the education route pans out, I'll separate it out!
The chart of accounts was my first thought. If there are too many different items the don't have meaning for the other business. You can arrange the chart of accounts into two segments for an overall dollar analysis but it gets incomprehensible really fast. Good video and ideas. Thanks
Great points! Additionally, I would consider 1) capital structure differences (perhaps one business has greater debt capacity if evaluated on a stand-alone basis); 2) employee equity-linked compensation (e.g., phantom stock); and 3) different investment horizons and exit options (allows for separate and perhaps cleaner transactions).
Separate businesses that I have are Sch C Rule Accounting and Sch F Bickham Ranch.
Awesome! Answered my questions too! I had 3 ideas (consulting, more contracting/construction, and education) and will drop the middle one. In the future once the education route pans out, I'll separate it out!
That makes sense! I've seen education and consulting be under the same business if it is all on the same subject and similar target audience.
I was going to ask about what if there are more than one partners… but you answered it perfectly. Thank you so much
awesome!
The chart of accounts was my first thought. If there are too many different items the don't have meaning for the other business. You can arrange the chart of accounts into two segments for an overall dollar analysis but it gets incomprehensible really fast. Good video and ideas. Thanks
Excellent topic. Thoughtful points of view. Thanks
Thanks!
Great video! Often times people have daily problems and turn those into businesses or inventions. They know they can do better than whats out there.
The best businesses and inventions solve a big problem for people!
Great points! Additionally, I would consider 1) capital structure differences (perhaps one business has greater debt capacity if evaluated on a stand-alone basis); 2) employee equity-linked compensation (e.g., phantom stock); and 3) different investment horizons and exit options (allows for separate and perhaps cleaner transactions).
Agree! Great points!
I have one business with 2 related offshoots that share a company file but I also have an additional business that has to be separate.
A revenue stream is a way to determine if it should be a separate business. some businesses need to just be revenue streams
yeah - it can be confusing to know sometimes!