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One Business or Two

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Jon Davis
One Business or Two
on Jun 7, 2015 at 8:53:24 pm

Hello , I have a question regarding branding. i Im current in the process of setting up a Production Company , producing Music / Corporate videos and im wondering if i should run it as one business or two


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Ned Miller
Re: One Business or Two
on Jun 8, 2015 at 1:03:29 pm
Last Edited By Ned Miller on Jun 8, 2015 at 2:14:08 pm

Do not do two entities, I did that for around 15 years. You're doubling your marketing efforts and costs, from logo creation, printing, ads, two websites, two SEO efforts, ugh! And whatever you do, don't incorporate the two, even as a DBA (Doing Business As). That's twice the IRS and state paperwork.

I had one entity for producing and one for just DP services figuring my target markets were distinctly different. Now I have just one, but I have three types of business cards in my wallet depending on who I am hitting up:

• me as Producer/Micro Production Company
• me as freelance DP
• me as a litigation support video service just for attorneys and law firms (conservative font)

So having different business cards would be the cheaper, less confusing, way to go. And here's a really important tidbit: Try to incorporate your name in the company name. The reason is, when offering creative services, if you are small, it's easier for the clients to remember you since after all, it's you pulling the train. You are the brand. The clients you work with will remember your name but a year or so down the road, or when new execs come in, they may not remember your company's name. I've seen this happen quite a lot. However, if your company is mid size where you're offering the services of others, then you'd want a branded company name.

Lastly, many websites that you will want to be listed on and even pay for are, unbelievably, still alphabetical! So stay close to A so you can be on the first page of results.

That will be $100.

Good luck,

Ned

Ned Miller
Chicago Videographer
http://www.nedmiller.com
www,bizvideo.com


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Ned Miller
Re: One Business or Two
on Jun 8, 2015 at 1:04:37 pm

Do not do two entities, I did that for around 15 years. You're doubling your marketing efforts and costs, from logo creation, printing, ads, two websites, two SEO efforts, ugh! And whatever you do, don't incorporate the two, even as a DBA (Doing Business As). That's twice the IRS and state paperwork.

I had one entity for producing and one for just DP services figuring my target markets were distinctly different. Now I have just one, but I have three types of business cards in my wallet depending on who I am hitting up:

• me as Producer/Micro Production Company
• me as freelance DP
• me as a litigation support video service just for attorneys and law firms (conservative font)

So having different business cards would be the cheaper, less confusing, way to go. And here's a really important tidbit: Try to incorporate your name in the company name. The reason is, when offering creative services, if you are small, it's easier for the clients to remember you since after all, it's you pulling the train. You are the brand. The clients you work with will remember your name but a year or so down the road, or when new execs come in, they may not remember your company's name. I've seen this happen quite a lot. However, if your company is mid size where you're offering the services of others, then you'd want a branded company name.

Lastly, many websites that you will want to be listed on and even pay for are, unbelievably, still alphabetical! So stay close to A so you can be on the first page of results.

That will be $100.

Good luck,

Ned

Ned Miller
Chicago Videographer
http://www.nedmiller.com
www,bizvideo.com


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Mark Suszko
Re: One Business or Two
on Jun 8, 2015 at 2:40:50 pm



Ned's clever joke has a clever way to achieve the multiple companies thing with single-company overhead.


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Mads Nybo Jørgensen
Re: One Business or Two
on Jun 9, 2015 at 11:25:58 pm

Hey Jon,

I would add to Ned's excellent post (without repeating myself :-)) that your issue is not necessarily about the business entities, but more importantly it is the product that you wish to offer:

1) Music videos - record companies prefers not to pay you. The line often is "You will get your video shown on channel no 8,743 and be very famous". The musician normally have no money, and wants it for free too - the clever video producer reminds their client that without your excellent marketing video, they will make no sales. At that point you either agree a flat fee or a percentage on earnings of the track. Not forgetting all of your competitors who are silly enough to think that channel+1 no 8,744 will also make them famous.

2) Corporate videos - they have money, and they like the idea of making all their branding into one neat music promo. Except when all the execs arrives in the kitchen, you end up with the same result (minus the music, dance and promo-video).

In short, the two businesses can happily co-exist and one may even feed work to the other. But if you are doing it for the business of making a profit, then you'll need to follow the money and not your heart...

All the Best
Mads

@madsvid, London, UK
Check out my other hangouts:
Twitter: @madsvid
http://mads-thinkingoutloud.blogspot.co.uk


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