In a message, Sheila Johnson wrote to All:
 SJ> Although I notice that a great many of the messages left here as of late
 SJ> or totally off of the subject.  For all of you who know what we discuss
 SJ> on this space, I have a question?  
  
  Hi Sheila!
  Go ahead with your question!
  
 SJ> I currently operate a number of 
 SJ> businesses out of my home office.  Three of the business are services,
 SJ> while two are sales.  Although I realize the benefits in having them
 SJ> consolidated under one business title for obvious reasons - one
 SJ> letterhead, one business card, advertising all at once, and although
 SJ> I realize the bookkeeping and tax accounting required for each, it is
 SJ> not as easy as it initially seemed to consolidate everything under one
 SJ> business title......am I on the right track or should I keep everything
 SJ> separate- what do you think and why??????????
  
  The more important question is what do your customers think of this 
arrangement?  Are they confused about what business you are in?
 
  Other questions:
  How does this affect your marketing plan?  Are the five businesses 
complementary to each other?  Do these businesses share the same type of 
target client?  Is it hard for these businesses to develop a unique identity 
versus your competition?
 
  How do you know which business is profitable?  If one business is going 
poorly, will you know or will the success of the other four businesses mask a 
failing part of the operation?
  
  Getting back to the first question.
  Are your customers confused about what business you are in?  Niche 
marketing is the most effective way for small businesses to prosper, catering 
to specific client types.  Does your umbrella cover one type of client or too 
many types?
  
  Example: There is a landscaping company in town that has been operating 
successfully for over 20 years.  Let's call it Wilde Landscaping & Lawn Care 
(WLLC).  WLLC buys lawnmowers and all kinds of lawn care equipment as part of 
their lawn care service operations.
  It was logical for them to become dealers of lawnmowers and weed cutters, 
etc.  They did not try to save money by selling out of the lawn care office.  
They started a new business called Wilde Lawnmower & Equipment.
  It's logical.  The lawn care service customers are marketed in a different 
manner.  The operation requires different space and building requirements.
  The lawnmower and equipment sales company needed a retail showroom and 
advertises by radio, newspaper, etc.  
  The two companies share repair facilities and naturally, the lawncare 
company buys its equipment from the retail arm of the operation.
  But the public sees two different operations, even though it is obvious the 
two operations share ownership.
  
  Back to the question: Which business is profitable?
  Treating each business as a separate profit center is a way of keeping 
track of where money is made and where it is lost.  Marketing for each 
business can be tailored for the target client, even if the marketing 
department is a common one.  
  
  You must feel there is something lacking in your "One Name, Many 
Businesses" approach you are using or you would not be asking this question 
here.  
  
  Examine the needs of the clients who use your businesses.  Are many of the 
same client served by two or more of your businesses?  Are few served by more 
than one of your businesses? 
  
  Maybe you can combine two of the businesses into a seperate company to 
establish its own identity?
  
  I am an sales/marketing guy for an industrial distribution business.  I am 
a marketing guy and typist for my wife's word processing/business services 
company.  I do some consulting on the side.  I am planning to launch a 
"mail-order" business again this year.
  
  No way in my own mind can I successfully market and manage all those 
operations under one company name.  You are obviously a hard worker and 
strong willed enough hold the operations together under one letterhead.
  
  That's all for now!  Sorry if I talked your ear off.  Come see us in the 
fido BUSINESS echo.  I co-moderate over there and I am just visiting here.
  Be seeing ya!
  - Franco Rios
    FIDO wanderer since 1995  :)
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