A Guide to Business Organization Flexible_2

Organizing Your Private Investigation Business 21 Nonprofit Corporation More often than not, a nonprofit corporation begins as a nonprofit association—a loosely constructed organization run by mostly volun-teers. In a nonprofit association, the members can be held liable for the debts and liabilities of the organization. If a nonprofit association stays afloat long enough, it often seeks to gain tax-exempt status and attract donors by becoming a nonprofit organization. Once incorporated, not only can the organization gain tax-exempt status from the IRS, but also the individual members will no longer be subject to the debts and liabilities of the organization. Becoming a nonprofit corporation is no more difficult than register-ing as an LLC. You draft articles of organization and file them with the Secretary of State. You must then submit your incorporation papers to the IRS to gain tax-exempt status under IRS Section 501(c) (3). To gain tax exempt status, you must obtain and fill out (likely with the assis-tance of a lawyer and/or accountant) IRS Package 1023. The caveat to being a nonprofit corporation is that the assets of your organization must be dedicated to charitable, educational, religious, or similar purposes. Moreover, nonprofit corporations cannot campaign or lobby for or against political candidates. Finally, taxes must be paid on any profits the nonprofit organization makes. HOW DO I CHOOSE A BUSINESS NAME? The name of your corporate entity must be chosen carefully be-cause having a name identical with, or similar to, another business en-tity will cause you nothing but grief. Corporate names may be checked through the Office of the Secretary of State in the state in which your business will be established. Once your business name has been cho-sen, it is necessary to register your business with the Secretary of State and the applicable tax and employment units. Care should be taken when choosing a business name. The name will have an impact on your reputation and marketing efforts. When choos-ing a business name, consideration should be given to the salability of that name at a later date. Names such as “Madman Investigations” or “Killer Investigations” can be fatal if, in the eyes of the public, it repre-sents a business that is more facetious than professional. 22 Basic Private Investigation DO I NEED INSURANCE? It can be business suicide to operate without adequate insurance to protect your investment. Errors and omissions (E & O) insurance pro-tects you against mistakes that you make during your business opera-tions. It does not necessarily protect you from the misdeeds of any subcontractors you may utilize. Therefore, it is important than any subcontractor be required to provide documentary evidence of E & O and workers’ compensation insurance prior to conducting any work for you. E & O insurance providers frequently audit policyholders for evidence of insurance by subcontractors. If you have a subcontractor without insurance, your E & O provider may cancel or greatly increase the premium for your insurance. It is best to operate with a policy that there is no subcontracted work without insurance. Another insurance issue is that of workers’ compensation. Depend-ing on the laws of your state, you may not be required to have work-ers’ compensation insurance if you do not have employees. If your subcontractor does not have workers’ compensation insurance and is injured doing work for you, he will be considered your employee. If you do not have workers’ compensation, depending on state law, you may be liable for treble damages as a penalty for medical and rehabili-tation costs as well as any legal settlement. As the owner or officer of a company, you can exclude yourself from workers’ compensation insurance but it is wise to carry a policy just to cover your firm from a claim by a subcontractor. Proof of automobile liability insurance required by the state should be another requirement for each subcontractor. If the subcontractor does not have the necessary insurance and becomes involved in an accident while conducting business on your behalf, you may find yourself as a defendant in civil litigation. It is important to develop a “hard-nosed” approach on the issues of insurance. You can either en -force proof of insurance or suffer the possible financial ramifications. DO I NEED AN OFFICE STAFF? Whether you need an office staff depends on some of your person-al skills. If you have relatively good typing and computer skills, you may not need someone to do your typing initially. Not only will it be Organizing Your Private Investigation Business 23 necessary to type routine reports, but also it will be necessary to pre-pare correspondence and other documents in a proper business style and format. With a little bit of effort on your part, you can easily devel-op the necessary skills. Another area of administrative concern is an office accounting sys-tem. There are several accounting software programs that can be understood and utilized by anyone. An accounting or bookkeeping background is not necessary. Many private investigators use Quick-Books and find that it is easy to use and can be configured to meet your needs. It allows for the preparation of invoices, check payments, and receipt of income. It also allows for the preparation of financial reports, job costing, and payroll matters. There is nothing more frustrating than to call an individual’s office and not receive an answer. There are several means for responding to a caller when you are not available. One way is to have a good quali-ty voice mail system that provides for the receipt of a message and also gives information for an alternate contact method, such as a cellular telephone number, that is continually monitored. Telephone answering services provide a more personal response to calls in your absence. The caller can interact with the service operator in the same manner as an office receptionist. The personal touch with a human being instead of a voice message recorder is a more profes-sional touch. HOW DO I MARKET MY BUSINESS? Using the services of a marketing expert is expensive but can be profitable in the long run. This person will be able to assist in devel-oping your advertising, including business cards, stationery, and bro-chures. To assist in your marketing endeavors, “branding” of your business is essential. Branding, a commonly used term throughout the business world, essentially means to create an identifiable entity that makes a promise of value. It means that you have created a conscious-ness, an image, and an awareness of your business. It is your compa-ny’s personality. A brand is also a kind of promise. It is a set of fundamental princi-ples as understood by anyone who comes into contact with a compa-ny. A brand is an organization’s “reason for being.” It is how that rea- 24 Basic Private Investigation son is expressed through the various communications to its key audi-ences, including customers, shareholders, employees, and analysts. A brand should also represent the desired attributes of a company’s pro-ducts, services, and initiatives. Many businesses try but fail to create a successful brand. Here are ten of the most common mistakes: 1. Not thinking analytically. Too many companies think of branding as marketing or as having a catch phrase or a logo. It is more than simply vying for attention. A brand warrants atten-tion on a consistent basis, and represents something that your customer wants, but does not get, from your competitors. For example, it could be providing the best customer service in your industry—not just through your tagline or logo—but by actually providing the best customer service in your industry. 2. Not maintaining your brand. Too often, in a shaky economy, businesses are quick to change or alter their identity. Too much of this confuses your steady customers. For guidance, think of big brands: Nike, for instance has used “Just Do It” as a slogan for years. One rule of thumb is that it is when you have become tired of your logo, tagline, or branding efforts, that they begin to sink in with customers. 3. Trying to appease everyone. You will never be able to brand yourself in such a way that everyone will like you. Typically, the best you can do is to focus on the niche market for your prod-uct. 4. Not knowing who you really are. If you are not the fastest overnight delivery service in the world, do not profess to be. Too many business owners think that they are providing something that they do not provide. Know your strengths and weaknesses through honest analysis of what you do best. 5. Not fully committing to branding. Often business owners let the marketing and advertising departments handle such things as branding, while others work on sales and other important parts of the business. Sales and branding, however, are tied to -gether as integral aspects of your business. Many Fortune 500 companies are where they are today because smart branding made them household names. Organizing Your Private Investigation Business 25 6. Not sharing the joke. If only the people in your office get a joke, it is not going to play to a large audience. The same holds true for branding. If your campaign is created for you and not “them,” your brand will not succeed. 7. Not having a dedicated marketing plan. Many companies come up with ideas to market themselves and establish a brand identity but have neither the resources nor a plan for how they will reach their audience. You must have a well-thought-out mar-keting plan in place before your branding strategy will work. 8. Using too much jargon. Business-to-business-based companies are most guilty of piling on the jargon. From benchmark to stra -tegic partnering to value added, jargon does not benefit brand-ing. If anything, it muddles your message. 9. Trying too hard to be different. Being different for the sake of being different is not branding. Yes, you will be noticed, but not necessarily in a way that increases sales. 10. Not knowing when you have them. Companies that have succeeded in branding need to know when to spend fewer re-sources on establishing their brand, while continuing to maintain that which they have established. Monitor the results of your branding campaign. If your small business is a local household word, you can spend more time maintaining your professional image. Not unlike a business plan, a marketing plan can play an important role in the success of your small business. Although the plan is pri-marily for your purposes, it should include • your products and/or services • your demographic audience • methods of selling • pricing • your budget • your geographic market • your competition and your competitive edge • an overview of the marketing tools available: media outlets, pub-lic relations (PR) possibilities, community activities, conferences, potential speaking engagements, and so on. ... - tailieumienphi.vn