Situation: A CEO has built a successful company. She is considering creating an additional company, unrelated to the current company but which will enable her to pursue a long-term dream. The second company will be sufficiently different from the current company that it makes more sense for it to be a separate entity. What success parameters should she set? How do you create a side business?

Advice from the CEOs:

• A number of successful entrepreneurs have been able to do this. Elon Musk is an excellent example. Study the steps that he took as he moved from PayPal to SpaceX and Tesla. This will provide insight into the factors that must be taken into account.
• For the short term, pursue the dream of setting up the new company. Draft a business plan and seek an angel – perhaps someone that you already know – to get it moving.
• Fall-back positions are good to have in mind. While looking at options, assure that sufficient time is allocated to pursue the long-term goal. Be aware of and provide the necessary resources to meet the demands of the new entity. Assure that there is a qualified individual to take the lead in the existing company as your attention shifts to the new entity.
• For your long-term goal, be the Beta subject of the new program.
• Assure that all of the ramifications of the long-term goal – including financial and quality of life realities – are taken into account and that there is a plan for each.

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