Economic hard times can still be a good time for business formation; the SBA reports success of entrepreneurial pursuits heightens in recession. But finding startup funds can be one of the biggest barriers to business formation in a downturn, so entrepreneurs should think about how to cut costs on founding finances.
A report from the Small Business Administration suggests that an economic downturn might be a prosperous time to start a new business. For those contemplating business formation, Entrepreneur magazine’s biggest tip is to plan.
Incorporation is an important process in starting a new business. Still, business formation doesn’t end simply when the initial shares are sold to stockholders and the entity is legally established. It’s important to properly document all corporate decisions.
Entrepreneurs about to undergo business formation should think carefully about which business types are best suited to their enterprises’ needs. For instance, different entities come with different tax benefits. The Christian Post offers some insight on the advantages of an S corporation.
The Development Corporation of Knox County in Tennessee boasts of its devotion to promoting long-term business development within the state. The state agency offers resources to entrepreneurs interested in starting all business types, and it will soon host its annual startup business competition.
For many philanthropic-minded entrepreneurs considering business formation, forming a 501(c)3 service is seen as a good way to conduct charitable endeavors. But when the charitable nature of an organization is called into question, state filing departments could challenge 501(c)3 incorporation.
Entrepreneurs who are undergoing business formation might be interested in learning about those who will join their ranks thanks to a contest hosted by the Chamber of Commerce and Industry of Saint-Laurent. The competition will award startup funds to promising business plans.
When entrepreneurs mention they are considering business formation, many advise them there is less risk in purchasing a franchise. But a study by Tim Bates at Wayne State University indicates that independent business startups could be more profitable.