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Structure for Inventors

G

GuestUser143

Guest
Hello y'all :D

I've been pondering with a real important question to me. But first a little background so that the question makes sense.

My goal is to create a company which would leverage my n°1 strength: invention by allowing me to focus most of time on inventing. This is where my value resides.

So what I need to do to achieve this goal is to create a team structure around me that would complement me in the execution area (something I'm terrible at, executing and getting into the details isn't my thing at all).

The way I envision it is to create a structure similar to the one Richard Branson created around himself (he's very similar to me, his value is inventing things), meaning creating a holding company that would then create daughter companies which will implement and execute my ideas (with the holding company still retaining most of the shares).

Now onto the question itself: I got 2 ways to create such a structure... Top-Down, or Bottom-Up.
  1. Top-Down: I first create the holding company (not as an entity yet, but as an organization of people, a team) and gather an execution team around me so that we can start our first daughter company and "headhunt" the right people to manage this project.
  2. Bottom-Up: I first execute a daughter company, then after validating the daughter company and starting to get revenues from it, I set up the holding company as an umbrella to it (this is the way I *think* Richard Branson did it)
Another approach might be to go with the monolithic approach and consolidating all the projects under the same company, but this leads to problems of Risk... Having a holding company helps us mitigate risk if one idea fails... But it is a hell more work administratively, legally, etc.

Which way to go would you think is the most viable? I'm more tempted by the top-down approach.
 
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MattR82

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Maybe an accountant would be a good person to talk to. But.. seems you have things the wrong way around? Filling out paperwork to create companies is easy. That's why I'm avoiding setting up a Pty Ltd company for my project until absolutely 100% necessary, otherwise it just feels like a bit of a cop out.
 

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