[URGENT] Need Advice Before i Take The Important Decision

Discussion in 'Growing and Managing a Business' started by Hazel, Mar 7, 2013.

  1. Hazel

    Hazel
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    1-I am going to start Exclusive Local Movies broadcasting company on internet.
    2-Next another company Exclusive local Singers music video release live on internet.
    [Both company i am going to build in mini social network style.]

    I have the team and the network with the Local Artist Celebrities. I have solid business strategy why the local movie production company and celebrity need to give me their exclusive movies for me to distribute to young audience. I have the solid marketing plan and monetizing plan on how to make profit on each product and also make profit for my clients. I will start small with small budget local movies and i have business strategy till grow targeting theater release movies in my country bringing to internet exclusively.

    First i need to start the website[Exclusive Local Movies broadcasting company on internet], then after 4 months i will start [Exclusive local Singers music video release live on internet] website.
    I will grow Successfully, i have the beautiful team. I want to become a big company in future.

    Since my website both going to be online and it need each other strongly to stay successful and to gain attention of people continuesly, i am not sure to make this both as a separate company or start as one single company and one domain name.

    I want to decide which will increase my net worth of company in future and which is best way to do it??

    Let me summarize my question:
    1-i am not sure to make this both as a separate company or start as one single company under one domain name.
     
  2. Fergal

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    Hi Hazel, just to clarify are you asking if you should start the local movies site and the local singers site on the same domain name, or if you should have a domain name for the movie site and another domain for the singers' site?
     
  3. Hazel

    Hazel
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    yes fergal that is my question. Which is the best decision? I want take the right decision to help increase my net worth of the company in future. I want to become a successful brand. Hope to hear some of you guys advice on my question
     
  4. Ted

    Ted
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    They could still be part of the same company, but I would operate them each on a separate domain. It is easier to promote a website that has a specialty. By keeping them on separate websites, each website will have its own specialty.
     
  5. scifi

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    It's better to be multiple products with independent strategic business units in one company....rather than two company because it will not only increase operational cost but also difficult to manage.....
     
  6. Hazel

    Hazel
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    Mr scifi whydifficult to manage?? There are so many big company and very complex architecture and database websites. [i don't think difficult to manage must be priority concern, which way if i do means it will bring most benefit must be priority concern here]

    I am still looking for more advice..
     
  7. Fergal

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    Hazel you say that,
    If I was you I would start the first website on the best domain you have available for that site. Work as hard as you can on the site and make it as successful as possible.

    Then in four months time when you are ready to launch the second site, you will have a much stronger understanding and knowledge of your target market. Hence, at that time you will have a much better feel as to whether you should use a separate domain for the second site or if you should incorporate it into your first site.

    Similar to what Ted said, my own feeling is based on a personal belief that a website or business should be as simple as possible and provide one clear benefit to its users. For this reason I would be inclined to use a separate domain for each site, but that is not a decision you necessarily have to make now, for the reasons I stated in the paragraph above.

    Setting up and administering a single company (e.g. filing tax returns and company accounts), will be a lot cheaper than doing the same for two companies. So my suggestion would be to create a single company. Even if you decide to use two separate domains, both of those domains and websites can be owned by a single company.

    How do you feel about the advice and suggestions you have received so far, Hazel?
     
  8. Hazel

    Hazel
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    Let me give a example,
    Let say For a example:
    'hazall group Limited' is a conglomerate company.
    under that i create:
    -'Hazall T limited' [Exclusive Movies broadcasting company on internet.] Mini social network website
    -'Hazall M limited' [Exclusive Singers music video release live on internet.] Mini social network website
    -also in Future i want create 3 more company under Hazall group Limited

    Now 2 different company['Hazall T limited' & 'Hazall M limited'] operating under one Big company ['hazall group Limited']

    Is this way you guys telling?[keeping the company under one company easy to maintain?]
     
  9. Fergal

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    Yes, you can do that and it is common practice so it is not difficult to maintain. However, it is more expensive and time consuming to do it that way, hence that procedure is generally used by large companies with turnover in the millions. Smaller and start-up companies would generally wait until they are of a significant size before implementing a corporate structure like that. Is there any particular reason why you are considering doing it from the outset?

    What country will your business be based in? I ask, because the country the business is based in will determine the company law that applies?

    As you are setting up limited companies, I would assume that you are using the services of an accountant. Have you asked your accountant for advice in relation to this matter?
     
  10. Hazel

    Hazel
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    your sentence confusing me, Is that the business model example i gave u will be the best way to do it? 'hazall group Limited' as conglomerate company and other company under that..
    Because Ted suggest me to start 2 website under one company. But i am thinking about starting 2 different company under one conglomerate company..
     
    #10 Hazel, Mar 7, 2013
    Last edited: Mar 7, 2013
  11. wellhi

    wellhi
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    What do you mean? As my opinion, put whole heart into one company only if you want to manage it better. No much spirit and no much time, how to deal with lots of business?
     
  12. Rocky

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    Hazel you are confusing yourself. What Ted said and what you are saying are similar. Ted advised about having both websites under one company. And you want to have both of your companies under one big company (conglomerate company). But if you consider your individual company with one Website each under the Conglomerate then its the same thing as Ted said.

    That said. Having two websites under one company would be the ideal thing for you. Because a Conglomerate company is usually one which has various entities dealing in different businesses. Whereas you would be in the same line of business. Other than that managing two separate companies with one website each would be much difficult then one company with two websites.

    What you want is two separate names for your movies and singers. So online you have two distinct websites but offline they are under one brand.
    This would be easier to manage as well.

    Hope NOW your doubts are cleared.
     
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  13. Fergal

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    Hazel, I agree fully with Rocky. I really don't know why you would need to have a holding company with smaller companies below it, when a single company should suffice at this time. Your main concentration at start up should be on providing value to your profitable customers, if you can get that right, all the other stuff such as company structure will fall into place.
     
  14. scifi

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    Companies don't open big from day one unless until your are already in the business....small companies only grow big if you are starting...it is safe to always minimise your fixed costs and operational costs while starting a new venture so that you can break even early....two different companies means lot of investment in infrastructure, human resources, legal formalities ....this should be avoided and focus should be on break even and quick ROI- return on investment while starting....

    if you think you have enough capital to depute on expenditure and operational costs for full one year...then you can take the risk of two separate companies which is not bad idea considering the ROI it can give you considering your sound marketing and business plan.
     
  15. Hazel

    Hazel
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    When i read my post again i realised i made Some mistakes to mention certain things clearly and used some wrong words[conglomerate company etc] when i am replying others, so the conversation took a new direction. Let me summaries and tell what i already know and what advice i am looking for from you guys:

    what i Already know are:
    1- Of course I know my main concentration at start up should be providing value to my profitable customers
    2- I know company don't start big from day 1, i agree. [i am not a millionaire but i have enough capital and a team to Aim for fast growth. So please consider this]

    What i asked is:
    I am not sure to make my movie site and singer site as a separate company or start as one single company under one domain name.

    Scifi said:
    It's better to be multiple products with independent strategic business units in one company.

    REASON number 1 = Increase operational cost
    -Two different companies means lot of investment in infrastructure, human resources, legal formalities ....this should be avoided and focus should be on break even and quick ROI when starting.

    REASON 2 = Difficult to manage


    Fergal said:
    1-Setting up and administering a single company, will be a lot cheaper than doing the same for two companies. So my suggestion would be to create a single company.

    2-Fergal personal belief that a website or business should be as simple as possible and provide one clear benefit to its users. For this reason I would be inclined to use a separate domain for each site. [both of my movies and singers site function same way with just few funtionality different because its demand extra functionality. and i strongly believe both success together can bring more success and growth for me overall.]

    Now let me summarize:
    Everyone agree that starting 2 different company is difficult to manage.

    So what is the strategy should be?

    1st - start one website first then after 4 months according to my strategy start another website but both website under one company.

    Next - when my company grows i open a holding company with smaller company [movies company separate and singers company separate] but under one holding company. The holding company for the 2 company is because to reduce the difficult to manage the 2 company.

    Everyone Fergal, Ted and Scifi agree with this Strategy??
     
  16. scifi

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    This can be the best thing Hazel...You can do this but have two different domain names for your each startup..Maintain them in one company but having independent structure and operational model for both..this will help you in revenues at little bit later stage...

    Hmmm..well you can study a business model of "Info Edge (India) Ltd. " by Sanjeev Bikhchandani..I am sure you will be much clear in views after this...perfect case study for your all questions...Hope it will be helpful..
     
  17. Ted

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    One thing I have learned after building more than one business from scratch is that no matter how much effort you put into planning ahead of time, nothing ever ends up working exactly as you have planned. In fact, it is often times not even close to how you initially planned it to work out.

    Building a successful business from scratch is exceptionally challenging even if you have lots of capital to start with.

    Rather than fretting over setting things up “perfectly” from the get go, I think you should be more focused on executing your existing plan for your first business venture.

    If after four months, which by the way is exceptionally ambitious, you feel that you are fully on target with your initial business plan then yes I would say that launching the second domain to offer the second service as a subsidiary of the original business makes the most sense.

    This is the scenario that is more likely to happen:

    - You will launch your first website and begin rolling things out. After two months you will realize that you need to make some adjustments to your original plan because there were a few things that you did not foresee when you launched your business. Because of these adjustments you then decide that you are going to hold off on the second launch of the second domain for the time being. You realize that the experience you are gaining from this initial launch is invaluable and is going to make that second website launch much smoother. But, you realize that you are better off waiting to prove the first business model before you launch that second site.


    I honestly don’t think it is humanly possible to plan a perfect business launch. Nor do I think it is humanly possible to execute it perfectly, especially when you don’t have any business experience. Trust me.

    My advice is to start your company and put 100% of your effort into rolling out that first four month phase of your first website domain project. Once you are four months into your project you will make a much better decision about that second website/product offering.

    In all likelihood, anything you think you have decided today will probably change anyway once your business is underway.

    You can always change things down the road anyway if you really want to. There is nothing written in stone. You can spinoff one of your websites and create a separate company to run it under if that is what you decided to do one day. Companies spin off divisions all the time.
     
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  18. Fergal

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    Yes, that would be my approach to it.
     
  19. Hazel

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    In my future i want to hold a movies company and singers company seperately under one holding company. That is the future. I am going to follow my strategy plan and marketing plan and grow my client network more then what i have right now.

    -'Hazall Movies' [Exclusive Movies broadcasting company on internet.] Mini social network website
    -'Hazall Music' [Exclusive Singers music video release live on internet.] Mini social network website

    When i am choosing the domain name before i start up, I need to keep my future in mind.

    First choice - start the local movies site and the local singers site on the same domain name, you can switch back to musics or movies.
    [The reason, both of my movies and singers site function same way with just few functionality different because its demand extra functionality, but almost same.]
    [example: www.hazall.com but you can switch to movies or singers inside the site]

    Second choice - have a different domain name for the movie site and another completely different domain for the singers' site.

    Third choice - building domain name in brand name.
    [example: www.hazall.com then movies.hazall.com and music.hazall.com ]
    -Richard Branson is a very good example of building all his companies in his brand name, i seriously not sure what benefit it brings for him. I just can make a guess maybe its to build fame/popularity for his brand name. I don't know what business experts will say about it. (Virgin Megastores, Virgin Mobile, Virgin Active, Virgin Airways some of his company names.)

    I have came up with 3 choices, i want to hear from you guys what u guys think?
     
  20. Fergal

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    Hazel, I feel that our members have already answered your question and given you excellent advice. Why are you asking the same question again?

     

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