Effects of competing websites on the same server

[evotsi]

I currently have a business website that ranks very well (Top 3) for all of it's major keywords. I am starting another business that will be selling a completely different product line and filling a different niche, however the products are very similar and the keywords for them will be the same. These are basically two separate competing businesses, but I am wondering if Google will treat it the same way. They will be hosted on the same server, have same whois contacts, etc. Would I be penalized for doing it this way compared to two companies that aren't related at all?

[anallawalla]

There shouldn't be a "penalty" but the new site will struggle to rank as well as the old one simply because it is new and everything that goes with being new - fewer quality links, trust, authority etc.

Being on the same IP, same server, same whois etc are fairly minor issues. Many large companies host major sites in that way and have no ranking issues. If you avoid duplicate content, you should be OK once the new site ages a little.