CEO of MyCorporation Business Services, Inc. (“MyCorporation.com”), Deborah Sweeney, was kind enough to take the time to answer a few questions about trends in entrepreneurship, starting a new business in today's economy, and for protecting the investment and the company from liability.
Thanks to Deborah Sweeney for her time, and for her comprehensive and informative responses. They are greatly appreciated.
During the current economic downturn, are new businesses being created despite the news on the economy?
Deborah Sweeney: Yes, new businesses are popping up despite the economic downturn. We’re seeing businesses form that are often a result of the downturn, such as property investors purchasing distressed property. We’re also seeing moms go back to work by starting their own “at home” businesses, selling clothing, jewelry, baby products. People are also forming consulting businesses in greater numbers. We see new businesses form when people have been laid off from their jobs, they take their area of expertise and offer it on a consulting basis. People are getting creative and are learning to put their skills to work in different ways.
Are there certain industries that are even doing very well in today's difficult economic times?
Deborah Sweeney: While the housing industry has taken a down-turn, investors are paying cash to buy properties to turn them around upon the economic pick-up. We’re seeing the trucking industry grow, as the barriers to entry are relatively low, and the cost owning a truck is comparatively low. We’re also seeing a boom around the food truck industry – the start-up costs are minimal when compared with leasing space and building it out. Further, the mobility of a food truck enables the owner to expand their customer base.
Usually, not all areas of the country experience the same economic conditions at the same time. Which areas of the country are finding new business start ups being created? We’re finding more start-ups in 2 specific states – Wyoming and Texas. We’re seeing that Wyoming’s incorporation friendly laws are leading to more start-ups in that state. Further, Texas with the 15th largest economy in the world certainly helps the nation’s second-biggest state reach the level of “most friendly state to start a business”. The rankings are based upon cost of doing business, quality of
Real estate is always in the news as being a disaster. Are there real estate investors who are doing well in this economy and what type pf real estate is making money?
Deborah Sweeney: After a quiet year of investment sales, buyers are preparing to forge ahead with acquisitions in 2011. Two-thirds of investors (65 percent) who responded to the 6th Annual Investment Survey plan to boost their investment in commercial real estate over the next 12 months. That figure is up from 56 percent in the third quarter and 51 percent a year ago. The exclusive survey is produced jointly by National Real Estate Investor and Marcus & Millichap.
The fact that buyers are once again returning to the table is a huge vote of confidence for a commercial real estate industry that has been slammed in the past year by falling property values, occupancies and rents. Respondents to the annual survey who do plan to expand existing portfolios anticipate an average increase of 26 percent, up from 24 percent in the third quarter and 22 percent a year earlier.
Deborah Sweeney (photo left)
Many laid off executives are becoming consultants, but we often hear of the people who didn't succeed in the profession. How is consulting performing as a business in today's economy?
Deborah Sweeney: Consulting seems to be a growing industry. It is often difficult to go from an employee to being self-employed, so we hear that the biggest challenge of a consultant is the marketing/sales aspect of the business. They typically do very well once they have been offered the position, but getting clients to “buy in” to their expertise and value-add is often a difficult endeavor. This is true especially when businesses are cutting back on what they often see as “extra” expenses. Consulting tends to be a growing industry nevertheless because when people cannot find a job in their field, they are often in a position where they can start lending their expertise on a more cost-efficient basis outside of a large corporate environment.
What are a few other industries where you are seeing growth in new and successful start up businesses?
Deborah Sweeney: I did some research on growing industries for 2011 and forward and here’s a list of the highest-performing industries projected for the upcoming years: Consulting: Management, technology, and scientific-related areas will proliferate. Elderly Services: As “boomers” reach senior citizenship and enjoy good health, a wide variety of services will need staff. Therapy: The areas of physical, occupational, and speech therapy are the most promising for opportunities. EDP and Internet Hosting and Publishing: As mainstream readers move from the printed word to electronic news and information, hosting and publishing job opportunities should dramatically increase.
Home Health Care: As the population ages and health insurance companies tighten their budgets, home health care opportunities expand. Cable and Satellite Programming: As the over-the-air networks face more quality competition from cable and satellite sources, job opportunities should continue an upward trend. Computer Systems Design: Computer speed, power, and ability continues to increase and become intrinsic to all industries. While hardware design continues to provide opportunities, overall systems design is growing at a fast rate. The integration of hardware and software, particularly in the medical field, will accelerate new job opportunities. Mental Health Services (non-physician): Non-psychiatric and physician services should hold steady (yet, still strong), but support service requirements should expand job prospects.
Your company MyCorporation Business Services, Inc. works with new businesses. What role does your company play in assisting new companies achieve success?
Deborah Sweeney:
MyCorporation provides a “business in a box” that enables new businesses to get their businesses started and incorporated quickly, while saving money. Our business in a box includes the corporate filing with the state of choice, annual filing services, Quickbooks Simple Start, logo design, domain name from Network Solutions and a copy of Nolo’s incorporation guide all for $199. Companies can save on taxes, add a level of legitimacy and separate personal assets from those of the business by incorporating or forming an LLC. Our business in a box enables entrepreneurs to focus on their business while we do what’s necessary to protect the business and get it up and running.
What are the most common obstacles that new businesses must overcome to become successful in this and any economy?
Deborah Sweeney: One of the most common obstacles encountered by new businesses is their own fear or self-doubt. With confidence and a good network of other entrepreneurs, starting and growing a business can happen quite easily. It takes persistence and focus, but it can be done. Having good resources – other entrepreneurs, experienced business owners – who can serve as a sounding board is extremely important.
What are some of the most frequently occurring mistakes that new business people make that prevent them from achieving success?
Deborah Sweeney: New businesses often risk shooting themselves in the foot as they’re getting started. It’s not easy to be an entrepreneur. Not only are you getting your business up and running, your operations solidified, and your marketing strategy off the ground, but you are also trying to make sure you’re managing your business properly and minimizing liability.
1. Incorporate before doing business: For liability reasons, it’s wise to make sure you incorporate or form an LLC before the business takes off. Incorporating or forming an LLC can help protect personal assets by separating the business from your personal affairs. If anything were to go wrong with the business, it’s wise to make sure your house, car and personal effects are properly protected.
2. Consult a tax professional: If the type of business entity you should form is not clear to you, it’s wise to speak with a CPA. CPAs can help you understand tax implications and how the different structures can help you protect your assets as well as save money on taxes.
3. Learn your market: It’s wise to know your market. Understand who your customers are and target them. One of the best ways to do that is to emulate a business in your industry that you believe is doing a good job. Take the items that are successful and combine them with that which makes your business unique. You don’t have to reinvent the wheel entirely. If your business idea is novel, leverage the expertise of other entrepreneurs and business owners within the same genre as your offering. Getting out there and talking with people can be one of your greatest assets early on. Plus, you may generate customers in the process.
4. Be creative: No matter what industry you’re in, don’t be stagnant. Stay ahead of the curve and constantly be on the cutting edge. Communicate with the youth to see what’s up and coming in terms of marketing and social networking. Don’t rest on your laurels, and make sure you’re on top of the next steps for your business.
5. Spend your funds wisely: Many small businesses make the mistake of spending too quickly. Either they spend what others have invested in their business, or they spend everything that comes in the door. That can be helpful in the initial growth stages, but it may not be the recipe for long-term success. Make sure to invest more heavily in areas in which you get a higher return, and take smart risks otherwise.
What advice would you give to new business people who are starting their own companies?
Deborah Sweeney: Keep your head up even in the rough times. Starting a new business is very exciting, but it’s not always easy. It takes perseverance and dedication. It takes a good attitude, and focus. Also, it’s important to take steps to protect yourself – your personal assets. If something goes wrong with your business, you want to make sure that your personal assets are not at risk. For this reason, it’s important to incorporate or form an LLC.
If there’s legal action or a debt that is owed by your business, as a business owner, you do not want to risk losing your car, personal property or even worse, your home. Forming a corporation or LLC and separating personal assets from those of the business creates a limitation of liability, also known as a “corporate veil” that affords business a level of protection that is crucial in today’s litigious and sometimes economically risky financial environment.
Is today's economy perhaps the ideal time to start a new business venture?
Deborah Sweeney: When there is nothing to lose, one has only to gain. If someone has been laid off or downsized, there is nowhere to go but up. And, during a tough economy, people are often willing to take more risks – to explore an industry or occupation that they have always wanted to explore. When things are comfortable, people often do not feel the need to change, but when things have been disrupted as they have in this tough economy, then people get inspired (or pushed) into thinking outside the box. People take on roles and responsibilities they once only dreamed of, and they often turn mere dreams into a business venture.
What is next for Deborah Sweeney and MyCorporation?
Deborah Sweeney: We continue to support new business growth – introducing new business owners to other entrepreneurs. We look to create a community of business owners – a place where entrepreneurs can go to get answers and to get help with their legal filings. We want to help entrepreneurs as they get started on their business journey and we look to be a resource for business filings as a business grows.
More than 98% of all U.S. businesses are considered “small to medium sized businesses”, and those companies are responsible for more than 45% of all private payrolls and 80% of the new jobs created over the past decade. We want to be there to support those businesses with our “business in a box”.
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DEBORAH SWEENEY
MyCorporation Business Services, Inc.
As CEO of MyCorporation Business Services, Inc. (“MyCorporation.com”), Deborah Sweeney is an advocate for protecting personal and business assets for all consumers. With her experience in the field of corporate and intellectual property law, Deborah can provide insightful commentary on the benefits, barriers and who should consider incorporation and trademark registration. She also has extensive experience in the start-up and entrepreneurial industry as she has been involved in the formation of hundreds of thousands of MyCorporation.com's customers.
Ms. Sweeney joined MyCorporation in 2003 after serving as outside general counsel for 5 years. She received her Juris Doctor and Masters in Business Administration degrees from Pepperdine University and is a member of the American Bar Association.
Deborah has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in the area of corporate and intellectual property law. Because of her extensive knowledge, Sweeney has long served as a speaker and panelist on legal issues affecting new to the world and growing businesses.
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