How to build a multi-entity set-up that scales

Growth is good. It's what most businesses dream of. Attracting new customers, boosting revenue, increasing brand awareness – these milestones are all worth celebrating. But scaling doesn’t come without its challenges .

Whether it’s managing employees in different time zones or coming to terms with cash flow constraints, it’s all part and parcel of becoming a multi-entity business . Here are a few tips to help you set yourself up for success.

First things first: what is a multi-entity business?

It’s any organisation with different brands, divisions, subsidiaries or offices. Your company might have acquired a new entity through a merger and acquisition, for example, or maybe you’re launching your product in the US after taking off in Europe .Disney is a good example of a multi-entity business with a pretty complex structure. It has resorts all over the world, each containing a number of theme parks, restaurants and hotels. And don’t forget, Disney’s also famous for its movie, TV and retail arms. Each of these segments contributes to the company’s overall revenue, but they operate independently using different processes.With nearly 200,000 employees and over $60 billion annual revenue, making sure things are running according to plan for Disney is no picnic.

What are the challenges of running a multi-entity business?

It all comes back to the finances. The biggest difficulty is that since different entities are self-sufficient and might even use different accounting processes, keeping track of the numbers can be a nightmare. It’s a bit like being a parent: the more children you have, the harder it is to be aware of what each one is up to.Owning a combination of entities that sit under the parent company can make it tricky to:Integrate with other business software (like inventory control and point-of-sale systems)