Are You The Next P Diddy? Advice For Entrepreneurs

By Joshua Marks

OK, I'll admit it. Once in a while, while channel surfing, I'll pause on one of the Real Housewives shows on the BRAVO network. What a train wreck! And - like any wreck - I just can't seem to look away. These ladies of reality provide raw entertainment of the sort that has our ancestors rolling over in their graves. Yet one diva of primetime grime has managed to clean herself up and emerge with a successful career and devoted following. Bethenny Frankel, former star of The Real Housewives of New York City, is now a successful author of three bestselling books, creator of the hugely popular Skinny Girl Margarita, founder of bethennybakes (a company that offers a line of wheat, egg and dairy free baked goods), and is starring in her own hit reality TV show on BRAVO, "Bethenny Ever After."

Fan or not, you have to be impressed with the multiple successful business ventures Frankel has created. In this day and age, it seems there are many media entrepreneurs who have built a brand and from it branched out into various professional endeavors. P. Diddy, once only a recording artist, has his own record label (Bad Boy), a clothing line (Sean John), does product endorsements, and is an actor. Rachel Ray, daytime talk show host, chef, cookbook author, and magazine creator is another great example.

With so many irons in the fire, how do these busy impresarios keep everything straight, business-wise?

From a legal standpoint, is it smart for entrepreneurs who have built a brand and multiple business ventures to operate everything under one roof?

Technically, multiple business ventures can be operated under one company, such as a single corporation or LLC, but that's not a smart business move for several reasons. From a business standpoint, the projects may have different goals (both economically and socially). They may also have different short and long-term objectives and dissimilar investors. Additionally, they will each have a unique business plan. Finally, they will have different management teams who are experts in each particular line of business.

Legally, it is best if each venture is operated as a separate entity so that the legal issues of one business don't affect the others. For example, if Bethenny gets sued by someone who drank a tainted batch of Skinny Girl Margaritas, she would not want the revenue from her book sales to be exposed.

Also, each venture is most likely going to have different tax issues and different intellectual property rights that need to be protected. Finally, you want the flexibility to plan for the sale or succession of each undertaking on its own without affecting the others.

It's important to develop a relationship with a business attorney who can guide you through all of the issues that will arise while juggling multiple business opportunities. JM LAW GROUP is experienced in this area, so if you're looking for an attorney to help with your small business venture or group of ventures - please give us a call at 215-832-3600. In the meantime, I think I'll sit back, relax, sip a Skinny Girl Margarita, listen to a little P. Diddy, flip through Rachel Ray's latest issue, and watch some Real Housewives of Orange County...