One Brand - Two Separately run (and owned) businesses?

cormie

Hey folks,
I've been considering getting into a certain industry and trying to establish some kind of brand. I'd want to initially focus on particular parts of the industry, only, but there are plenty of other aspects in the same industry that could all fall under the one brand. I know somebody who has just started in the same industry but is focussing on the areas I wouldn't be getting into (at least not for along time) and they have a very similar ethos and I was thinking it could be an idea to team up and try and push the one brand as we would each have different strengths, skills and would primarily be focussing on different areas, that could all go hand in hand to compliment eachother and create a stronger brand.

Has anyone ever explored something like this? How did it work out? Is it possible to do something like this while keeping each business separate and possible collaborate on other parts of it too?

Any feedback would be great

pedroeibar1

It would be very hard to achieve IMO. Building a brand is a very expensive and time-consuming business. It requires total focus, often not there in a JVCO. Both ‘sides’ of the brand would not develop at the same pace, both would thus eventually have contributed different asset (brand) value, etc., so the likelihood for falling-out is increased exponentially. Added to the different growth rates and profitability structures per business stream is the impact of any weakness created by one that would act to the detriment of the other, or impinge on the overall brand value, which would create a minefield for potential conflict. A single co, with a really strong & very detailed shareholders’ agreement would be necessary and 'might' work but personally I’d be more favourable to an ‘alliance’ route, each entity retaining its own identity and referring business under a set fee/risk/reward agreement under an alliance agreement.

Mr Clonfadda

Technically Jacob's biscuits in Ireland & UK shared Brand of Jacobs.
Bulmers (UK) & Bulmers (Irl) different companies as well

Both of these didn't start out individually though.

VincePP

Mr Clonfadda wrote: »

Technically Jacob's biscuits in Ireland & UK shared Brand of Jacobs.
Bulmers (UK) & Bulmers (Irl) different companies as well

Both of these didn't start out individually though.

The real Tayto + Tayto NI

For the OP, building a brand is difficult, but I think you are more looking to building a respected trading name within a specific professional area.

This is quite easily done. You set up the trading name and license the use of that name. Probably best to have an official agreement with conditions on how the name is used.