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  • #995868
    bana
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    • Total posts: 15
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    Hi all

    In my 3rd year of business and finally writing my business plan (whoops)!

    I’m also on the point of launching a second ‘business’ to try and grow, though structure wise I’m not going to be creating a new entity, but just starting up a new business name and branding it differently, with my existing services business being the ‘parent’ company.

    Products & services will be the same, just that Company A will focus on say, secondhand thingamabobs while Company B will focus on new thingamabobs.

    My current issue is – do I write the business plan as if I’m only Business A and just expanding into a new area? or should I write two business plans – one for Business Name A & one for Business Name B? To keep them separate in terms of income forecasts and expenses (though majority of expenses will be from a shared cost base) and competitors etc.

    Any comments/suggestions welcome!

    #1204327
    Paul – FS Concierge
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    Hi bana,

    Theoretically, it is far better to have 2 x separate plans – and cash flow forecasts!

    Unless you already have a very healthy level of capital buffer, the plans should ideally also have capital allocated to each product.

    I am keen to hear what others thing.

    #1204328
    Mischelle
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    Hi Bana,

    This is the same question I have asked myself so many times in the past. :)

    The bottom line is what do you want your business plan for? Is it to raise investment then you need a single one for your Company as that is who the money will come to.

    IF, it’s to clarify your ideas and strategies then you have more flexibility.

    I have a similar structure to you, many different products and services under the umbrella of my company, and I made the decision to have an integrated business and marketing plan for the entire company.

    It’s a big one, but I chose this method as many of the sales and marketing strategies where the same, along with SWOT and competitors. ALSO it’s easier to manage a single document if and when changes are needed.

    There were also many shared resources and expenses so it was easier to have one big business plan broken into sections.

    My first step was to define the different businesses and products and services, I literally drew a flowchart and mapped everything out, which also helped to identify any cross business opportunities and marketing.

    I have attached my overview but blanked out client’s name. I used this as my foundation and I have NEVER shown anyone outside my business but I feel this will explain what I mean by mapped. I have excluded my consulting work as that not relevant here.

    Some of my products have been selling for over 15 years some are new and about to launch.

    If you have any question please feel free to ask.

    Cheers
    Mischelle :)

    #1204329
    bana
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    Hi Mischelle,

    Thanks for such a detailed response.

    It is difficult and could go either way, you’re right!

    My situation is no-where near as complicated as yours but the idea of a flowchart is great as it will help to delineate the two ‘businesses’. Thanks very much for sharing the idea!

    We’re actually currently applying for a grant, so it’s important that I paint a picture of who and where we are, and where we are going & what we’ll use the funds for.

    I’ve started the financial projection side of things – again, it’s hard to know whether to split out or not since there are so many expenses that will be shared, including staff. I could just add in new rev/exp/asset accounts coded to the ‘new’ business and leave rest as shared…or i could divide them as well and provide two whole sets of numbers!

    I’m just going to do a draft both ways and see which feels better as I’m going and how they end up looking! The org/flow chart is definitely going in now too!

    Thanks all,

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