America’s SBDC Blog

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Why Incorporate or Form a Limited Liability Company?

April 27, 2012

Incorporation is an important step in the life of a business, but unfortunately the true value of incorporating a business or forming a limited liability company (LLC) is often not realized until the business faces a negative situation, such as a lawsuit or bankruptcy.

A primary advantage of forming a corporation or LLC is the limited liability these entities afford their owners. Typically, owners are not liable for the debts and obligations of the business; thus creditors cannot pursue the personal assets of the owners to pay the business debts. Conversely, in a partnership or sole proprietorship, where the owner and the business are considered legally the same, the owner’s personal assets may be used to pay debts of the business.

Other advantages of forming a corporation include:

· Incorporating may help to establish credibility for a new business with potential customers, employees, vendors, and partners. (more…)

Three Tips for Using an Export Management Company

April 26, 2012

Tapping into the vast global marketplace sounds great in theory, but if you are like many small business owners, the logistics of making your exporting dreams a reality can be overwhelming. That’s when it makes sense to consider using an export management company for your first foray into international trade.

Yes, direct exporting—where you handle every aspect of the process — does provide the best opportunity to grow your sales and your profits. But the significant commitment in managing everything from learning cross-border distribution to establishing in-country business partnerships or joint ventures often isn’t worth the effort.

With an export management company (EMC) at your side, you can tap into international growth while maintaining your domestic business (and your sanity). The secret lies within developing an indirect exporting strategy using an EMC. (more…)

To Factor or Not to Factor

April 25, 2012

If you’ve heard about invoice factoring and are considering it for your B to B company, be sure it fits your needs.  Factoring is a type of specialty lending that’s not meant to replace bank lines or other commercial loans, but to augment them when the need for cash flow is greater than a basic line of credit can provide.  Factoring is helpful for young, non-bankable companies with growth opportunities, and for companies that can benefit by outsourcing their credit and collections activity.  Full-service factoring companies will provide finance, credit services and guarantees, and accounts receivable management.

Here are the Top 10 reasons to consider and NOT to consider factoring for your business:

TOP 10 REASONS TO CONSIDER A FACTORING COMPANY (OR NOT)

10. Your B2B company needs a line of credit to support growth, but isn’t bankable yet.
9. Your customers demand credit but your suppliers demand cash.
8. Your customers love to keep you guessing.
7. You just don’t have time to manage receivables.
6. Your growth is outstripping your cash flow. (more…)

Four Steps for Getting Your Marketing Message on YouTube

April 23, 2012

Many small business owners hope their YouTube videos will be the next viral sensations. Even if your video doesn’t achieve such great heights, YouTube remains a great low-cost way to publicize your business and increase your brand awareness. We’ve identified four steps that can help you achieve YouTube success.

1. Don’t deviate from your tried-and-true marketing messaging. Unless your video is the debut piece of a brand new marketing campaign, stick to marketing that works. That doesn’t mean you can’t experiment with humor, a story, or another device to show your business in a new light. But you should reinforce how your business solves customers’ key pain points with language they’ll encounter in your other marketing materials.

Fair warning: Tastes in humor vary. What you consider funny may be boring or offensive to others. When dabbling in comedy, make sure the script reflects a funny situation rather than relying on esoteric cultural references or irony for laughs. The latter two have a tendency to go over many viewers’ heads. (more…)

How and Why to Support Young Entrepreneurs

April 20, 2012

Young Entrepreneurs are more important than ever, and it is vital for current entrepreneurs to support this next generation of business leaders.

Regardless of background, ideology or industry – most people in the world agree that entrepreneurial innovation positively impacts society and the world. Future leaders and entrepreneurs grow up in a world where technology and information change more quickly than ever. Information learned in school can be obsolete by the time students graduate. This is why young entrepreneurs need the support of the people that understand how a swiftly changing environment impacts the business community and how that relates to the role of an entrepreneur.

Current entrepreneurs and small business owners should invest in supporting and training up-and-coming entrepreneurs to ensure the most vibrant workforce possible for all entrepreneurial endeavors. It benefits everyone to encourage and train students interested in starting businesses, and the network of SBDC’s is an example of how small business support can make a difference. (more…)