IncFile.com - Business Incorporation Solutions

A coalition of businesses in Texas is helping young entrepreneurs form an LLC, incorporate or start a sole proprietorship in an effort to build the next generation of business owners.

The Youth Entrepreneurship Academy selected 13 teenagers from a pool of more than 100 to attend a seven-month long program at Texas Southern University. The students learned how to develop business plans and sales pitches, manage credit and apply for loans, as well as the basics of marketing and economics.

"We believe in the YEA goal of equipping our youth, while growing the number of new, qualified small businesses in the area and ensuring their growth, self-sufficiency and sustainability," said Jonita Reynolds, CEO of the Gulf Coast Community Services Association and one of the academy's sponsors.

The students each moved through the stages to create a new business, and will now benefit from having a mentor for the next year as they attempt to grow and expand their entrepreneurial endeavors.

Having grown up using mobile and internet technology, young entrepreneurs bring new skill sets and knowledge to the business world. Most are familiar with the reach of social media applications such as Facebook and approach it as a marketing tool.

They say the sky is the limit, but for entrepreneurs forming an LLC, opening up to global markets will truly allow a company to grow and succeed.

Experienced global entrepreneur Larry Farrell met with business leaders in Memphis, Tennessee, and encouraged them to think globally as they move from startup to stable business.

"There's more money out there than there are good ideas, but if you have a great concept, then you can't be stopped," he said. "It's such an exciting time to be an entrepreneur, but you have to think beyond Memphis. Think about selling globally."

Farrell, who has experience working in several countries, says that entrepreneurship acts to put everyone at an equal level – which means individual effort alone will reward hard workers.

Yet he understands how difficult it can be to start a new business. His own research suggests that two-thirds of all startups fail, and the amount of personal capital needed to fund a new business is approximately $14,000.

Farrell has an extensive background that has helped inspire his entrepreneurial spirit, including time as a Peace Corps volunteer. He attended Harvard Business School and has served as a top executive at several major corporations.

Choosing the right receptionist can be critical for entrepreneurs forming an LLC, as the person covering the front desk and answering phones often knows helpful details about the business and acts as a conduit to employees.

While tracking data sheets can help identify the top performer at a business based on numbers, a perceptive receptionist who answers the phones will know who customers are asking for the most, according to Inc. Magazine. And the person most sought out by clients is a valuable resource.

"They're probably the ones doing the best job of seeking business," says experienced receptionist Blanche Cribbs. "That's the person you need to use to train the rest of the people in your organization to bring people into the company."

Additionally, many front-desk employees become a sort of "office psychologist," says Cribbs, and have a good feel for employee morale and what issues are being talked about.

Maintaining good employee morale and job satisfaction are major factors in employee turnover, productivity and even the quality of customer service provided. The department store Sears discovered a direct relation between an increase in job satisfaction and improved customer service.

When forming an LLC, it's easy to get caught up in complex marketing strategies, Facebook pages and the benefits of cloud computing, but business wisdom sometimes boils down to the lessons learned from grandparents.

Bettina Hein writes in Mass Tech High that that the patience, hard work and even marketing ideas her business now relies on she initially learned from the patriarchs and matriarchs of her family.

"Starting out is hard, it will take your company three to four years to really get off the ground," her grandmother told her when Hein started her own company. "I was in my twenties and thought to myself, 'What does she know? This is a high-tech software company, and she had a corner grocery store.'"

Another grandfather taught Hein about marketing. A chemist in Germany in the 1920s, he discovered the tasty mix of alcohol and carbonated fruit juice. He gave out the drink for free to patrons at local establishments, which generated demand and eventually a profitable business.

With many of the Greatest Generation now enjoying their retirement years, many companies are looking to provide services for the aging U.S. population. Healthcare and long-term care are expected to be growing industries in the next 10 years, according to the U.S. Bureau of Labor Statistics.

With 96 percent of new jobs in the next 10 years expected to be in the service industry, many entrepreneurs forming an LLC are targeting markets and customers in several growing fields.

The Bureau of Labor Statistics estimates that restaurants, landscaping, administration, security, maintenance and childcare will be in increased demand over the next decade, and this opens up opportunities for small businesses, according to The Street.

But there are also several high-skilled industries that are expected to grow, including medical care, education and accounting, as well as services that capitalize on being sustainable or environmentally friendly.

And while many office-based workers have faced layoffs, not all administrative jobs will be redundant.

"Financial examiners and compliance officers will be needed to stay on top of growing regulations, and network systems analysts are crucial to keeping companies' computer systems in shape," writes Elizabeth Blackwell at The Street. "Staffing and consulting companies that address these specific needs should see steady opportunities for growth."

With an aging population, the demand for wellness and health specialists will increase. More companies are looking at corporate wellness plans and consultants to help manage rising healthcare costs. Comprehensive wellness programs can help employers realize a 3-to-1 return on investment.

Having a crisis communication plan in place will help entrepreneurs forming an LLC mitigate any damage in the event a publicity problem arises with their new business.

Providing public relations training to the appointed spokesperson for a company will ensure that someone is already in place and prepared in the event of a problem, according to Carmine Gallo at Bloomberg BusinessWeek. He says a good communications policy is preparedness, not reaction.

"When a crisis hits your industry, your customers will be quick to believe the worst about you," Gallo writes. "Committing to the five steps … will help you survive the crisis – and quite possibly, emerge even stronger."

The second step is to appoint someone who is "in the field" as spokesperson; this shows the public more of a human face. Additionally, having a transparent operation increases trust.

The fourth step – acting quickly – is taken once a crisis hits. In the age of the internet, waiting 24 hours to release a statement can be too late.

Finally, Gallo says to show real sympathy and never try to shift blame.

BP’s actions after the oil spill in the gulf were an example of reaction – not preparedness. The oil company spent more than $90 million on advertising and public relations campaigns in the wake of the crisis.

Entrepreneurs forming an LLC are increasingly finding markets for products overseas, but the export business requires that owners pay careful attention to currency exchange rates.

Fluctuating currencies can quickly eat into profit margins if business owners don’t adjust prices accordingly, NorthJersey.com reports. But some international banks now allow customers to lock in currency rates for as long as one year, assuring a constant exchange rate and allowing entrepreneurs to better forecast profits.

While big business has usually dominated the import/export industry, smaller businesses are now better able to take advantage of emerging markets in developing countries through the internet and global communication.

Mark Luppi is in charge of business banking at the New York HSBC office, and agrees that small businesses are now competing globally. He says most of his customers that are engaged in the export business have annual sales under $1 million.

Entrepreneur magazine reports that the availability of a product, the status of goods from specific regions and price are major factors that can determine whether an import/export business will succeed. For example, wine from Napa Valley, California, has a status that makes it attractive to customers outside of the state – or even in Japan.

Continuing education is becoming a popular way to gain an advantage in business, and flexible schedules make it an option even for entrepreneurs forming an LLC.

Whether it’s a one-night-a-week class on marketing at a community college or an intensive MBA program at university, business owners are benefiting from expanding their education, even after the doors have opened for business, according to David Port at Entrepreneur.

Going back to school also allows some entrepreneurs to take a break from the daily grind and surround themselves with outside influences that can stimulate ideas and innovation, he says.

Texas State University offers a CEO development class specifically designed for women, and it allowed Gayle Reaume to learn how to expand her business in Austin, Texas.

"Growing a company means you need to know how the whole company works – every part of it," she said. "I’ve always been strong at certain things, like marketing, but I could see I was struggling with the intricacies of building and running a growth-oriented company."

Only 1 percent of all companies are run by a female CEO, but since 2002, the number of women running Fortune 500 companies has doubled.

Decision making is a critical aspect of running a business after incorporation, and good leaders demonstrate not only smart decisions, but also communicate well with team members and relish the responsibility of being an entrepreneur.

Business consultant Marty Zwilling writes at the Huffington Post that while taking risk seems natural to most entrepreneurs, it shouldn’t govern all decisions.

"Business decisions always involve risk, at times a great deal of it," he writes. "Smart entrepreneurs always balance the risk with facts, when they have them, rather than their gut."

But when those bad decisions do crop up, Zwilling says that true leaders accept responsibility and let employees know where the buck stops.

The best way to communicate leadership is by creating an open channel with employees and by sharing the company vision with everyone involved. Zwilling notes that employees who aren’t sure what is expected of them will frequently fail to meet their potential.

Motivating employees is never easy, but some business owners say that the ROWE method – Results Only Working Environment – allows employees to work when, how and where they want. The increased sense of responsibility often leads to employees who exceed expectations.

Part of forming an LLC is finding the right marketing strategy to increase revenue, but history has shown that some successful companies that produce an environmentally friendly product or service can take advantage of the many available government grants.

The first energy-related act in 2005 provided $14 billion in tax deductions for eco-friendly industries, and in 2006 more money was set aside for clean energy research and production to help get America off foreign oil. But now Forbes has outlined the newest environmental act and the $100 billion in grants, subsidies and tax credits available for businesses.

Grants provide up to 30 percent of the cost of a project that involves solar, wind or renewable fuels as part of the U.S. Department of the Treasury’s 1603 Program. Whether it’s a manufacturer of solar panels – or an electrical contractor installing them – money is available for industry specialists.

There are also tax deductions and loans available, including low-interest U.S. Small Business Administration 7(a) financing for the purchase of energy-saving equipment.

President Barack Obama recently proposed to make research and experimentation tax credits permanent, many of which focus on green industry.

Any entrepreneur forming an LLC knows that he or she must demonstrate leadership, and women business owners can improve their authority and confidence in a historically man’s world by following a few body language tips.

Too many smiles, nodding and "head tilts" are three key body movements sometimes employed by women that can send the wrong signals in business, according to business coach Carol Goman at Human Resources IQ. She notes that body language is critical for every leader – male or female.

"If a female wants to be perceived as powerful, credible and confident, she has to be aware of the nonverbal signals she’s sending," she says. "Women unknowingly employ behaviors that reduce their authority by denoting vulnerability or submission."

Goman notes that smiling, nodding and "tilting" can be misinterpreted as a sign of agreement – when often a woman is not necessarily agreeing, but simply showing that she is engaged in the discussion.

She also advises against "flirting" and points to a University of California at Berkeley study that discovered business women who flirt to gain an advantage in sales actually are offered 20 percent less than their non-flirting counterparts.

Women are still far under-represented in business leadership, accounting for less than 1 percent of all CEOs.

Entrepreneurs forming an LLC know that when a business is just starting out, doing even the small things themselves can save money, but once the business begins to grow they must transition to becoming a leader instead of a micromanager.

Letting go of the "busy work" and delegating it to employees or outside services is just one aspect that many entrepreneurs have trouble with, according to Inc. Magazine.

A San Francisco area business owner, Mike Faith, says giving up responsibilities can be difficult.

"Many entrepreneurs have an addiction to making sure things get done ‘just right,’" he told Inc. Magazine. "That’s often how they became successful, by having higher standards to get things right than others around them, sometimes even obsessive standards."

But an expanding business needs a leader, and the boss needs to be aware of when to delegate responsibility to others.

Hiring good employees who share the company vision is the first step for bosses to take as they hand over daily operations and begin to work on long-term goals. Holding regular meetings with employees can keep an owner involved and allow him or her to express confidence in employees.

Entrepreneurs planning for incorporation can get off to a good start by avoiding some common mistakes made by new businesses.

"Starting out on your own in a new small business can be exciting and, hopefully, very profitable," writes Linsey Knerl at Investopedia.com. "Not taking the time to research and prepare for the unexpected, however, could cost you a bundle down the road in legal fees, missed sales or bad publicity."

The first and most important step is to assure that the proper paperwork has been filed with state and local governments. Filing for incorporation assures that there won’t be any heavy fines or unanticipated interruptions to business operations.

A snazzy name can really help a business flourish, but avoiding any trademark infringements is key. Businesses should assure that customers are not confused and can easily distinguish one business from another.

Lastly, making sure that appropriate sales taxes have been collected and recorded, as well as when setting profit margins, will help owners avoid any problems.

Many counties across the U.S. are facing budget shortfalls because of declining sales tax revenues. There is increased enforcement and monitoring to assure proper taxes are being paid, and penalties can often ruin a nascent business.

Marketing directly to small businesses is a way for LLCs to access a larger customer base, according to management consultant Harvey Schachter writing in Toronto’s Globe and Mail.

Small businesses often have a mix of consumer and business demands, which requires a dedicated effort to provide them with the services they seek.

"Develop products specifically aimed for small business, rather than adding a few bells and whistles to consumer products or stripping features and functionality from products for larger enterprises," Schachter writes.

He also recommends having a customer support system that is specifically trained to deal with small businesses.

Forming partnerships with other companies or joining business groups such as the chamber of commerce can also help tap into small business markets.

With renewed focus on stimulating small business growth to help the economy recover, more small businesses could gain access to the capital and assistance they need to expand.

The proposed Small Business Jobs Creation Act could provide $30 billion in loans and lines of credit. Companies that provide services or products to small businesses stand to benefit from increased spending.

Entering the world of business in the 21st Century and forming an LLC requires a knowledge of the marketing capabilities of social media, and business consultant Ivana Taylor lists the most insightful books about the phenomenon at Small Business Trends.

The Digital Handshake: Seven Proven Strategies to Grow Your Business Using Social Media, by Paul Chaney, provides an over-arching perspective of social media and how to use it effectively.

"If you’re fed up because the time and money you’ve already invested in traditional marketing like advertising or direct mail isn’t paying off, or you’re frustrated because you see the world of marketing changing and you’re not sure how to maximize the technology for business objectives, then this book is for you," writes Taylor.

Tamar Weinberg’s The New Community Rules: Marketing on the Social Web could be perfect for business owners who need concrete tips on how to utilize social media.

Lastly, in Viral Loop: From Facebook to Twitter, How Today’s Smartest Businesses Grow Themselves, Adam Penenberg describes how viral marketing can increase sales.

To complement new-found technological wisdom, business owners can also take advantage of the many free web-based applications for accounting, documentation and marketing listed at Under30CEO.com.

A green marketing campaign can help any entrepreneur forming an LLC add a unique advertising aspect and get a new business off to a good start.

Using environmentally friendly products or services goes beyond just saving money and the environment, according to University of Massachusetts professor Steven White.

"Green marketing for small businesses is really about introducing green products and adopting sustainable practices to differentiate yourself from your competitors," he told the Miami Herald. "It’s a wide open, emerging area of marketing that small, nimble businesses can take advantage of much quicker than larger, bureaucracy-heavy corporations can.”

White first suggests that green businesses let their customers know what they are doing to reduce their impact on the environment, whether it’s by using recycled paper or cutting energy waste. Logos, slogans and websites can help convey this message.

Secondly, adding a new product or service specifically designed to help the environment can increase sales and demonstrate a business’ commitment.

Lastly, partnering with environmental organizations can help spread the word about a green business as well as help it expand into new markets.

Steps as simple as using draft settings on office printers can save paper, and unplugging equipment when not in use can prevent energy waste.

With the benefits of technology too big for any business to ignore, entrepreneurs forming an LLC can use several free web applications to enhance sales, automate operations and reduce expenses.

There are a number of reliable applications on the internet that entrepreneurs will find helpful for communication, documentation and accounting, according to Under30CEO.com.

It starts with Google Docs, which offers word processing and spreadsheets that can be shared with coworkers over the web. More personal communication with business partners can be done via video conferencing through Skype.

Money matters are never far from an entrepreneur’s mind, and Mint gives business owners the ability to track budgets, expenses and income. Freshbooks allows a business to track invoices, timesheets and expenses for up to three clients. It has easy and inexpensive upgrading capabilities that can be used once the business takes off.

Lastly, social media sites such as Facebook and Twitter offer tremendous (and free) marketing abilities, and email marketing campaigns can be made easy using MailChimp’s free services. Similar to other applications, upgrades are available once a business expands.

Facebook has perhaps the biggest potential, as it claims at least 500 million users. New applications like "Places" allow businesses to utilize GPS technology via mobile phones to encourage friends of loyal customers to visit a business.

A new LLC can use bootstrapping techniques to help improve finances and get the business off to a good start, according to Young Entrepreneur.

Bootstrapping – using outside assistance to finance a startup at minimal cost – can often help entrepreneurs reserve the cash flow they need to maintain business operations in the first few critical months. Young Entrepreneur suggests a few easy tips.

First, use volunteer help, such as student interns who are eager for some business experience. Even friends and family can often provide part-time assistance.

Using computer automation can reduce the workload and avoid payroll expenses. Accounting software makes it easy to monitor the income and expenses without hiring a professional bookkeeper.

Finding partner companies that are selling a related product to the same customers can reduce advertising costs and help gain access to larger markets.

Finally, working from home and leasing equipment until the business model proves profitable helps avoid the high overhead of a full-fledged office.

Entrepreneur magazine recommends obtaining the best credit terms with suppliers to reduce costs and improve operations. Sometimes submitting letters to a supplier from major customers helps assure the lender that a business has a stable future income and is creditworthy.

The U.S. Small Business Administration is playing "matchmaker" this month by bringing together entrepreneurs forming an LLC with potential lenders.

The Philadelphia office of the SBA is holding four events this month that will give startups and entrepreneurs the chance to meet with potential lenders and set appointments for more intimate meetings at a later date.

"It will be the business equivalent of speed dating – 10-minute pitches in a one-on-one meeting with a lender," writes business editor Mike Armstrong at Philly.com. "That’s enough time to say who you are, what your business does, what you want financing for, and how much you need. It won’t be enough time for the banker to say, "You sold me. Here’s your check.’"

Entrepreneurs are encouraged to bring three years of financial history, two years of sales projections, credit reports, lists of potential loan collateral and an elevator pitch good enough to woo one of the 44 bankers that will be in attendance.

Approval for a small business loan is never easy, but having professional-looking financial statements helps. Small Business Finance Tips suggests using inexpensive and easy-to-use accounting software to prepare financial documents prior to applying for a business loan.

Finding the right location is important for any entrepreneur forming an LLC, and there are ways to transform a potentially bad location into a hub of activity.

Heavy traffic areas are often sought by small business owners, but too often the traffic is just passing through and won’t necessarily stop, according to business consultant Gladys Edmunds in USA Today. Creating zones within the property and bringing in additional services alongside a small business can often attract more customers.

Edmunds works with many entrepreneurs who are effectively stuck in a particular location, whether because of expensive rent, lease terms or other factors.

She recommends using part of the space for other attractions, such as a small farmer’s market or a Christmas tree lot. She says even such seemingly unrelated services as an auto repair shop and a fruit market can generate customers.

"[An] addition allows people to get two things done at once," Edmunds says. "[They can] get their cars repaired or serviced while they shop for fresh fruits and vegetables."

Additionally, a customer’s perceived safety of a location is important for a businesses, according to Entrepreneur.com. Using exterior lighting can help deter would-be criminals and improve the safety of visiting customers.