There are many reasons why you may need to split your company and open a subsidiary. You may just need regional or local offices. But whatever the reason, you can split your firm in a few simple steps.
It is necessary
- - Budget;
- - documentation;
- - business plan;
- - premises.
Instructions
Step 1
Think and write on paper how you envision the division of the company. Indicate how you are going to split the assets so that each of the start-ups has identical powers. Contact your financial mentors and lenders. Explain to them your plan for the separation - how, for what purpose and where you are planning to open a subsidiary.
Step 2
Start creating a business plan and estimate the time it will take to launch a new dealership. Decide if you need a third party specialist to help you expand or divest your business. Include new hires in your new firm's plan, as well as the required capital to start the firm, and explain how you are going to fund it.
Step 3
Register your new division. Contact your personal lawyer in order to prepare all the necessary papers. Physical assets from your parent company must be transferred to the new dealership. In the parent company ledger, record each financial transaction.
Step 4
Apply the successful components of your current business for venture capital and spin-off lending if you need to. You have come a long way and have ample business experience as an entrepreneur. All of this put it in the plan to increase the chances of its approval by creditors.
Step 5
Obtain all necessary permits and licenses for the division of your business and the lease (or construction) of new premises. You will also need insurance and a completed tax return.
Step 6
Allocate funds from your marketing budget. The new office will remain unnoticed by others until you inform the media about its opening. You can tell everyone how successful you have been and now you have expanded to multiple companies. In the end, you will be able to fully recoup the money spent on advertising.
