Start & Run an Internet Research Business. Gerhard W. Kautz
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Название: Start & Run an Internet Research Business
Автор: Gerhard W. Kautz
Издательство: Ingram
Жанр: Экономика
Серия: Start & Run Business Series
isbn: 9781770407367
isbn:
Example
Ms. B determined that she could not rely on word-of-mouth promotion because of the nature of her business. She decided that the best way for her to tell potential clients about her service was by direct mail, with a convincing letter, and a handy reply form that clients could mail or fax back to her. She also had to start with a small number of lawyers, rather than target all of them in her city at once.
5. Your Sales Procedure
For the purpose of this book, “sales” is considered the activity of closing the deals and getting contracts. This happens once you have potential clients interested in your service. Your sales procedure is therefore as important as your marketing procedure. Both have to exist in a successful business. Chapter 8 discusses how to get the contracts, or sales procedures, that should work for your Internet research business.
Example
Ms. B realized there were several different ways of handling the sales procedure after a successful marketing contact with a potential client. It all depended on how the client responded to her marketing, and what she asked for. She also realized that she would have to move fast when that client response was made, so she decided to outline suitable answers to the various client responses.
6. Your Project Work Procedure
Your project work procedure is the way in which you will do the work. It is also what many consider the fun part of the business. Chapter 11 goes through this aspect of the business in detail. You first have to verify that you understand what the client needs, and not necessarily just what he or she asked for. You then do the search using appropriate search engines and Internet sites, making sure the information you get is accurate. Finally, you have to write a report that will be the product you deliver to the client.
The work procedure is standard for any Internet research business. However, make sure you consider each aspect of it with regard to your business. Chapter 11 will help you do this.
7. Your Delivered Products
The main item to be delivered to the client is the report on your research findings, but you also want to include some other items. Of course you want to get paid, so you must include an invoice or bill. If there is a potential for follow-on work, you could also include a proposal to do it. You should always include a handy fax form or email template for the client to send to you for future information searches.
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Your Company Structure
1. Why You Need a Company
The main reason to create a company is for income tax purposes. You will have to pay income tax on the money you earn, and you do this through some form of company structure. However, creating a company also allows you to claim expenses against your income, and thus reduce your income tax. (Chapter 5, section 2., discusses overhead cost factors and lists some of the items you may want to consider as expenses in your business.)
Another reason for a company structure is to make yourself look more professional. You can also make it look like you are a much larger company than just yourself. This can be important to some clients until they get to know you.
You therefore have to decide on the best company structure for you. This will depend on the laws in your particular state or province, and you may want to speak to your accountant and/or lawyer about what is best for you. The following are some of the issues you should consider in setting up your company:
• Will you have employees?
• How big do you think your company will grow?
• Are lawsuits possible?
• How easily do you want to draw cash out of the business?
• What is the best tax structure?
• How much will it cost to set up the company?
There are a number of different company structures you can set up. Each one has its own advantages and disadvantages. You will have to choose the one which suits your requirements and circumstances. The following sections briefly describe the different types of company structures, along with their advantages and disadvantages. These are general descriptions, and there may be variations or differences in your state or province. Much of the information in this chapter comes from the following sites that you can visit for more details.
• USA Government Small Business Administration (SBA)
• United States Department of the Treasury / Internal Revenue Service
• Government of Canada, Forms of Business Organization
2. Incorporated Company
The incorporated company is a legal entity that is separate from its shareholding owners. A corporation can be taxed, it can be sued, and it can enter into contractual agreements. The shareholders are not personally liable for the actions of the company, including the debts.
The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes.
The cost of incorporation varies, but it generally costs around $1,000 to register it. You will also have legal fees that will add another $1,000 or more to the cost.
In the USA, corporations are registered and controlled by the state. In Canada, they can be either provincially or federally registered. In general there are two kinds of corporations:
• A private corporation can be formed by one or more people. It cannot sell shares or securities to the general public.
• A public corporation issues securities (shares) for public distribution. It has considerably more reporting requirements.
The advantages of a corporation include:
• Shareholders have limited liability for the corporation’s debts or lawsuits against the corporation.
• Generally, shareholders can only be held accountable for their investment in stock of the company. (Note however, that officers can be held personally liable for their actions.)
• Corporations can raise additional funds through the sale of stock.
The disadvantages of a corporation include:
• The process of incorporation requires more time and money than other forms of company structure.
• Corporations are monitored by federal, state, or province, and some local agencies. As a result, they have СКАЧАТЬ