Growing business into 2 companies

[RLitwin]

I have be cleaning for over ten years as an owner/operator. I have a helper, when needed. I get all of my work from repeat and referrals. I'm booked year round a least 1 week out. I'm very happy with my business and I have great customers.

I now have too much commercial work that is done after hours or on Saturdays. I'm thinking of starting a second company for the commercial cleaning. I think that it might be easier to find and keep employees for commercial rather than residential cleaning.

By having two different companies, I could sell the commercial outfit if it turns out to be more then I want to handle. Any thoughts?

 

[diamond brian]

Find a good, steadily employed janitor currently making $7-$8 per hour and offer him a decent paying job working the same hours in the same environment.

 

[Greg Loe]

By having 2 separate business you have an extra insurance payment, another tax filing. Another business expense you don't need. If you want to sell it later it's no problem

 

[Jay D]

I am waiting for Mr "ISLAND BOY" to answer. I know nothing about it but wouldnt be easier to sell the commercial end with the residential. What I mean is most folks want to buy the steady income of commercial. Selling the residential by itself is hard for a small company especially owner operated. :roll:

Mister Sir

 

[Scott]

I have be cleaning for over ten years as an owner/operator. I have a helper, when needed. I get all of my work from repeat and referrals. I'm booked year round a least 1 week out. I'm very happy with my business and I have great customers.

I now have too much commercial work that is done after hours or on Saturdays. I'm thinking of starting a second company for the commercial cleaning. I think that it might be easier to find and keep employees for commercial rather than residential cleaning.

By having two different companies, I could sell the commercial outfit if it turns out to be more then I want to handle. Any thoughts?

Why oh why would you want to sell a part of your business that (usually) has steady cashflow and profits? Can't you simply hire someone/some people for nights/weekends and keep the $$ rolling?

Scott