Business Credit And Corporations

Incorporating is the first legal step you have to take in order to establish credit for your business. It does not matter if you are a single individual, a small enterprise, or an established business; everyone knows that incorporating offers you and your business many advantages. You need to separate personal and business dealings and assets to protect yourself personally in the event you get sued. Hopefully you realize that the benefit of obtaining more credit (overlooked by most) is also a major reason for forming a corporation. Or even better, form several corporations and use the combined leverage for even greater purchasing power.

Note: A corporation is the equivalent of a new person separate from the one who created it.

A Corporation is a stand-alone legal entity. It is governed by state law of the state where it is registered. It operates through bylaws and resolutions adopted by its shareholders. The corporate entity legally separates the owner from any on-goings or ownership of the business. This new legal entity can on its own operate as a business, own property, sign contracts, have employees, pay taxes and establish credit.

In addition to building business credit, there are many additional benefits of incorporating. By starting your own corporation(s) you will legally and ethically protect your business and family from losing everything in a frivolous lawsuit or through unnecessary tax burdens. Properly structured, the business will pay a small percent of the tax bill that would have been generated if the owner had earned the same money without a corporation. Note that the corporation needs only to have one person. The same individual can function as all the officers and be the employees as well. Many entrepreneurs have a multiple corporate entity strategy where several corporations are used in conjunction with each other to maximize credit, expenses, liability protection and tax savings.

How Businesses Should Adapt to Change

Response to change is the key. The Darwinian concept,’ adapt or die’, applies to corporate as well as biological life. Business, of course, must respond to change if it is to survive. The response may be the development of new business or new business combinations, new organisation or new organisational structures, new products, new channels of distribution, mergers the acquisitions and the like. If the world of printing technology calls for a change in large format photo printing process for instance, then the management must conform or abide by these changes in order to remain competitive.

Once a corporation has responded to change it often finds its identity seriously altered. Deregulation in both banking and the airline industries for example have made many old geographical-oriented identities obsolete. Many companies have found it necessary to communicate a new identity to the public in order to free them from old restrictions.

The transmission of the identity message is also subject to external pressures, among them; competitive forces, distribution requirements, media requirements, economic pressures, corporate requirements, regulatory requirements and many others.

Often the result of such pressures is the homogenisation of products and services; they achieve parity with one another and all seem alike to the public. Another result may be confusion, or lack of clarity, in the image. Or perhaps the image is simply no longer accurate. When the projected identity change or goes our focus it results in an inaccurate or blurred image in the public mind. It is then necessary to correct the identity system so it will again have the proper influence in the image. Or, it may be a signal to re-examine the company’s marketing strategy to see if it is still the right one.

Research and analysis play a pivotal part in this reassessment. It not only helps evaluate the existing image, but also directs changes in strategy, guides the development of a new strategic identity programme, and monitors its effectiveness.

The result of this research, analysis, and refocusing is a corporate identity programme which truly reflects the current nature and direction of the company – a design system which fuses corporate identity and public perceptions – a new branded package copious enough to certain and position the entire corporation. It can then be used to communicate to all of the company’s public – both in the business community, and in the market-place.