In this blog post, I talked about using QuickBooks to track multiple business entities in your home-based business. Why would you use multiple business entities? Why not just stick with one thing?
Having more than one revenue generating business component is known as ‘multiple streams of incomes’. This is advantageous for lots of reasons, but probably the biggest one is to help insulate against business failure. If one part your business starts to fail – for example, the product line is no longer in demand – then you would have other parts of your business to rely on.
When you’re first starting out, you’re probably only concerned with getting that first entity going. That’s probably overwhelming enough. That’s ok! But keep this mantra in mind for your future home-based business growth plans: Multiple Streams of Income.