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Are we start-up or ongoing?

Question:
We have run a successful software company for the past three years.

We are now starting up a new Internet venture which has little to do with our previous company. However we would like to use our history with the first company as background for the second company. We would like to start a separate corporation for the new company, but use the same location and equipment for the second company.

When we write our plan, are we a start-up or a change or what?

Answer:
In this case I think you're better off doing your new plan as a brand new company, since it is, and add a topic into Chapter 2 (the company chapter) explaining the relationship between new company and old. You can also add a topic covering the history and background of the existing company. After all, the first company is going to own the new one.

So you can better understand the trade-offs, the start-up plan includes text, table, and chart for start-up financing. That includes starting expenses, initial capital, initial debt, and initial assets. The ongoing company, on the other hand, has text, table, and chart for past performance. One or the other sets the starting balance for the balance sheet.

Thanks for an interesting question,

Tim Berry