Taking the Leap: What to Consider Before Starting a Business

It can be a very compelling and driving force – you’ve got a great idea, a unique service, a fantastic line of recipes, or a can’t-miss product. But launching a business is not the next step…it’s the last step on the road to entrepreneurship. Your time, money, and future are on the line, so take some time to get your ducks in a row and look at the business with a rational eye. Make a Business Plan A business depends on a lot more than great products and services to be successful. Like a newborn child, it has its own life force that comes with certain needs and requirements in order for it to survive and thrive. Plan out the structure and processes of your business first. You will need a hierarchy of management, which may be very limited at first. You will need to keep financial records and file taxes. You will need to determine if you should form an “S” corporation, a “C” corporation, or a limited liability corporation (LLC), which could make a big difference in your profitability. Of course you will also need to find a location, design the customer interface (whether it is a store, a website, or a mailing list), price out everything you will need to get set up, and determine the size and scope of your business. You will need to define your demographic so that you can choose the right location and/or target your marketing properly. You will need to research city codes and know what licenses are required. Making and serving your gourmet lasagna is a very small part of the whole operation, so before you get too far, make sure you are up for all of the other tasks involved and then get things in order. Get your finances and credit in order Make sure your pockets are deep enough to get you through the start-up costs and several months of slow initial sales. Most entrepreneurs have to put more money into the business in the early stages, and don’t take profits out. Make sure that you have the resources to do that and to provide for yourself and family too. If you think you may need funds, get your investors lined up before you begin, when you have a fresh and exciting concept, rather than trying to get them to bail out your cash-strapped venture when it’s already in a hole. Whether it’s friends and family or a bank, you need to get their commitment before you begin. This is where a well-prepared business plan, neatly presented and complete with sales and profit projections, can make a huge difference. Get some expertise behind you Always remember that the world may not share your enthusiasm for your great idea. Remember too that even the best idea is only as good as its execution. Your visions of grandeur may not sell so well in a small storefront on a side street, which might be the best you can afford. Most new businesses fail, and difficult economic times do not increase your odds of success. You need to talk to people. Talk to people who have succeeded and people who have failed. Talk to bankers, even if you may not want their money, as they have seen a lot of success and failure from their clients. Talk to friends, talk to family, and talk to strangers. Talk to people in a similar business and find out the unforeseen obstacles they faced, as well as the factors that helped them succeed. Ask them if they would do it all over again. Starting your own business is a very personal decision with wide-ranging and long-lasting consequences, for better or worse. It should not be entered into lightly, unprepared, or without the full knowledge and willingness to embrace the possible downside if it does not succeed.

The Importance of Quality Over Quantity

Quality over quantity – it’s a simple concept taught to us throughout our formative years – but it’s one that fits like a square peg in a round hole in today’s corporate environment. The reason that it’s so hard to emphasize quality over quantity is simple – businesses are established to make money as quickly as possible and at the highest possible margins. Crafting single high quality products tends to be expensive and time consuming, and must be sold at much higher, less attractive prices to the average consumer in order to be profitable. Lower quality work, produced quickly in outsourced factories with a minimal time commitment per product, tends to be far more profitable, with higher margins as well as a lower, more attractive price point for consumers. Well-known adopters of this business model are Wal-Mart and Target. However, business managers shouldn’t entirely overlook the importance of quality over quantity. If your product becomes known for its shoddy construction – and due to the Internet, word travels fast – your overall sales will be quickly damaged. Modern consumers are likely to scout out opinions online before purchasing goods – wouldn’t you rather that they be greeted by a stream of favorable comments as opposed to a flood of angry ones? If your product is too cheap, it can also get easily lost in the bargain bin at Wal-Mart alongside a plethora of shoddy, similarly named foreign-made products. Let’s take a look at a few examples where quality over quantity has prevailed. In the auto industry, BMW’s business model of selling well-crafted luxury cars in tiers has become a standard for companies wishing to emphasize product quality. BMW offers its flagship vehicles in three flavors – the compact 3 series, the mid-size 5-series and luxury 7-series – all aimed at different markets. In addition, it sells sporty Mini hatchbacks as well as the ultra-luxurious Rolls-Royce in order to appeal to the lower and higher ends of the pricing spectrum, respectively. BMW’s clear separation of its tiers, all while retaining an aura of overall luxury, was the inspiration for Steve Jobs when he returned to Apple in the late 1990s. At Apple, Jobs mimicked BMW’s tiered pricing system with his computer and iPod lines. BMW and Apple are shining examples that offering a quality product on multiple pricing levels can attract the maximize amount of customers at premium prices. A large part of product quality stems from product design. You need to have a product design team that can create attractive designs while keeping costs under control. Your aim should be to create the illusion of an expensive product which is actually cheap to manufacture. This does not mean to cut corners and decrease quality. Instead, you should decrease the amount of necessary components, streamline the design and eliminate redundancies. Johnathan Ive, the head designer at Apple, is a master of this concept. By simply replacing the cheap plastic exteriors of its computer products with sleek, airbrushed aluminum and minimizing the amount of visible screws, he set his products miles above the rest, and customers lined up to pay the “Apple premium” for his futuristic looking products – such as the iPad, iPhone and iMac. Customers will come back if your product feels good in their hands. Quality over quantity – it’s an age old lesson that too many of us choose to ignore. Although sacrificing the former for the latter may grant you a few short-term profits, you’ll quickly run out of steam when customers fail to come back. Favoring quality over quantity will increase your company’s reputation and increase product loyalty, which will keep your business sustainable in the long run.

Effective Sales Techniques for Small Business

You must believe in what you are selling. Be passionate about your business and your customers will be excited too. As you build your sales team, keep in mind that every person has a unique method of selling that suits his or her personality. Train your staff on how to handle the special customers that may require special care.

Low pressure selling

Pushy high pressure sales people are dreaded by most buyers. Educate your customers about the features and values of your product. If possible, bring an item with you on sales calls to show and tell. Demonstrating your product in person allows the buyer to test out the product and will make your visit memorable. Explain why they should buy from you. Never talk badly about the competition. Keeping the focus on your company and what it has to offer can pay more dividends than forceful sales tactics.

Listen to your customers

Ask questions and let the client do the talking. Give them your undivided attention and find out what is most important to them. Once you get an idea of what they’re looking for in a product or service, you can adjust your sales pitch accordingly.

Helping buyers save their company money is usually one reason. Providing them with exceptional customer service and prompt delivery might be at the top of their list. Listening to your customers requests could open the door for additional products and services to increase your business.

Know Your Business

Not just your company, but the industry. Keep abreast of new technology and products related to what you are selling. Let your customers know you are educated in all aspects of the industry and they can come to you if they have any questions.

Build a Relationship

Get to know your customers. In a world of big box stores and online competition, you can remind customers that they are not just a number, they are special. Pay attention to their interests and hobbies. Keep a file on each customer to remind you of the little things before you call them. It is a friendly way to show them you care, and may produce a few extra deals.

Keep in Contact

How often you call or visit your customers may depend on the type of business you have. Pay attention to spending habits and pay them a visit just before their next order is about to be placed. Keep all customers informed of new products and services as soon as they are available. Be sure you let them know they can contact you if they have questions. Provide the client with your cell phone and email address. Staying up to date with their product or service needs could give you the edge you need to beat out the competition.

Customer Relations Management System

Customer history records are important to all facets of your business. Records can be stored manually in the office, but to be more productive, consider a customer relation management system can be accessed by your employees, as well as clients. Organize your customers starting with the initial contact point. Buying trends can be monitored by watching dates and quantities of each order. Praises, complaints and customer service issues can also be entered and resolved by approved staff members.

Ask for the Business

Whether you are on the phone or making a personal call, always ask the customer for an order at the end of your visit. You’ve likely done the leg work – don’t miss out on an opportunity.

Tips for Protecting Your Intellectual Property

Every great business starts with a “perfect” idea. In the fast moving, dog-eat-dog world of corporate business, however, ideas are stolen, duplicated and imitated as soon as they are conceived. If you have that million dollar idea, how can you go about protecting it while still attracting the attention of prospective investors?

Your first step, before presenting your idea to any companies or investors, is to hire a lawyer experienced in patent laws for your industry. Have this lawyer help you patent your idea, if applicable, which is a time consuming and expensive process. Depending on the complexity of the idea, it can cost you $1,000 to $100,000. Patents generally take over two years to clear and last approximately 20 years once in effect. As your patent clears, instruct your lawyer to write a nondisclosure agreement, which forces companies to promise they won’t copy your idea, under penalty of litigation. Penalties should be strict but fair, as to not frighten off investors. Penalties in nondisclosure agreements are usually monetary.

Be aware, however, that companies often have their own teams of lawyers whose sole purpose is to circumvent nondisclosure agreements and patent laws, modifying your design just enough to avoid litigation. In this case, your lawyers can first serve a cease-and-desist letter, followed by a lawsuit, if the company does not cease production. Taking on an alleged copycat in court can be extremely costly and time consuming. In many cases, the court will not rule in your favor unless you can prove monetary damages as a result of the copycat’s actions, which can be difficult if your product’s sales have been rising. This can also be difficult to prove if your idea is still in the nascent phase, and has still yet to turn a profit.

There are three questions to always remember when sharing an idea: whom, when and how much.

Remember who you’re speaking to about your idea – is it a partner whose business would be aided by its success, or an employee who can steal your idea and make it his or her own?

Record when you disclosed information. If the meetings are documented clearly, with an attendance record, then they are admissible in court to prove the theft of intellectual property.

Entrepreneurs often don’t know how much information to disclose. It is a good rule of thumb to disclose the minimal amount of information of the production phase when presenting your idea. In some cases it may be beneficial to mislead investors about the production process, as to detract any potential copycats. It is important, however, to get across the specific need your product fills, and its production margins. These are important factors that investors and companies will pay attention to.

In the corporate world, ideas are more valuable than cash. Major legal wars are fought over ideas, and a sub-culture of corporate espionage has even emerged to steal valuable trade secrets from competitors. Keep your valuable ideas clutched close to your chest and tread softly, when negotiating, but carry a big stick – in case those investors turn out to be copycats.

Top 10 Management Mistakes

Managers come from different walks of life, possess various characteristics, and have their own philosophies regarding how to manage a business and employees. In a broad sense, there are common mistakes made by managers at different levels and in various types of businesses. The following are 10 of the most common management mistakes.


1. Putting policies ahead of people: The smaller the organization, the larger the mistake this is. Policies are made to be followed, within reason. Some flexibility with employees, particularly in a small company, is important. An even bigger mistake is standing behind policies at the expense of losing loyal customers. Weigh the significance of standing behind your policy in each situation. If it is a matter of physical safety or security, policies must be upheld. However, in many other instances, there are reasonable solutions that will not alienate the customer or create a strained relationship with your employee(s).

2. Lack of communication: In any industry, at any level, communication is key to being a successful manager. Employees need to know what is expected of them and when specific projects or tasks need to be completed. Communication needs to be clear, and any questions that arise need to be answered.

3. Failing to hear what your employees have to say: Managers make the mistake of listening but not always hearing what their employees are saying. To manage effectively, you need to understand the needs and concerns of your employees.

4. Not acknowledging that you do not have all the answers: A good manager does not make the mistake of trying to solve every problem. Seeking help from individuals with expertise in specific areas is a sign of strength, not weakness. In addition, a good manager must understand that his or her way is not the only way to do the job.

5. The glass is always half empty: Managers who continually focus on the negatives, without recognizing positive achievements or employee accomplishments, end up with employees who are not motivated and often have one foot out the door looking for a more positive work environment.

6. Not accepting responsibility: A common mistake made by managers is to either delegate blame or simply not accept responsibility for that which happens under their guidance. Eventually, avoiding responsibility will catch up with a manager and usually not bode well for his or her future. Being in charge means taking responsibility for whatever happens.

7. Favoritism. Once a manager has obvious favorites, he or she loses credibility and the respect of the rest of the team.

8. Just do it. The Nike slogan does not work when employees are trying to gain an understanding of the process or project. Rather than expecting your team to simply work blindly on tasks they do not understand, a good manager takes the time to explain what the project is all about and how the team's work is incorporated into the plan. Remember, the more the team is invested in a project, the better the results will be. full version on request, send mail to: adejuyigbe.francis@gmail.com

Three Objectives of Brand Awareness

Marketing strategists agree that brand awareness in any industry gives that company an edge. Brand awareness accomplishes several objectives for companies seeking to increase sales in the marketplace. A brand awareness campaign needs to be flexible enough to grow with the company and adjust if needed. The company should seek to build customer awareness, promote its website and add value.

Brand awareness follows a certain process, although customers do not usually think through these steps when choosing a product. First, the customer has a perceived need for a product. In many cases, he will seek information on what product to buy. He will often evaluate his alternatives, although in some cases, such as in buying a drink, he may simply buy what’s convenient. At the same time, he will place a value, both financial and personal, on the product he plans to buy. After he buys your product, he will review his purchase and make adjustments. Sometimes these adjustments will be immediate; in other cases, they are long term. For example, if he doesn’t like the drink he bought, the next day, he will choose a different drink. But if he doesn’t like the vehicle he purchased, it could be two to five years until he makes a different purchase.

Build Customer Awareness

Target the desired customer base. From there, the business can more easily assess what it needs to do to increase customer awareness. For instance, a customer awareness strategy will focus on different audiences depending on if the product is toys, car products or walkers for those with mobility issues. In each case, the business will use different advertising campaigns to increase customer awareness. Every business needs to overcome certain challenges so the customer understands the benefits of working with that particular company.

Promote the Website

A website helps create a worldwide customer base. Customers no longer limit themselves to buying from a specific geographic location. A customer might research a product and then follow up with a catalog or phone order instead of a personal visit to the company location. Hiring a graphic designer can assist a business in projecting the type of image they want to portray. Coordinating business cards, marketing materials and additional advertising all further enhance customer awareness. Consistency in design helps customers connect that logo with the business and product.

Add Value

Every customer will determine value in different ways. Brand awareness can give your business that “edge” in making your customers aware of the extra value your company offers. This might be in the form of service, such as three free oil changes in a year with the purchase of a motorcycle. Your packaging might be slightly larger, which brings increased quantity. Your location might be unique and easily accessible. The business may sponsor special events, promote volunteer service or support a worthwhile organization. You will need to decide which one of these avenues will work best for your company.

Finally, give the business the time needed to develop brand awareness. In most cases, this process does not happen overnight. While the ultimate goal is for the company to identify the success level of brand awareness campaigns, the business should always continue to appreciate and track even the slightest progress.

Internet Solutions Ltd Recruiting IT Sales Professional

Internet Solutions Ltd Recruiting IT Sales Professional

Internet Solutions Nigeria Limited, a reputable, professional IT business focused on providing best of breed IT infrastructure solutions to businesses is in urgent need of IT SALES PROFESSIONALS.

As an end user provider, they provide a broad range of connectivity services and integrated solutions, sales and support, managed wireless solutions, network and user security, IP infrastructure, VoIP, telemetry solutions, video conferencing solutions and much more.

An IT SALES PROFESSIONAL is needed to help spearhead growth. This role comes with an excellent commission structure and great working environment.

Job Title: IT Sales Professional

Essential Responsibilities:

Generate new business sales revenue by selling IT solutions and VAPs

Help develop the company’s profile and reputation

Responsible for a number of key accounts and support other accounts.

Working in conjunction with the sales manager to maintain current client relationships and encourage repeat business

Maintain high level of Customer satisfaction

Exceptionally skills at cold calling

Qualification / Requirements

BSc/HND in Computer Science, Marketing or other related field

Minimum of 3 years practical sales experience

Must have proven track record of selling IT infrastructure, hardware and/or software solutions

Must be confident, possess good character and charm with good communication skills; a positive persuasive personality and diligent attention to details

Fluent in English.

Application Deadline
16th of March, 2012.

How To Apply
Send a copy of your CV to: funke@internetsolutions.net.ng with a valid email and telephone number.
Only shortlisted candidates will be contacted.

REVENUE ALLOCATION TEARS NIGERIA APART

Since 1954 when Nigeria became a federation, revenue allocation formula has always been a knotty issue, causing some resentments and frictions in the wheel of the nation.

Recently, the Niger State Governor and Chairman of Northern Governors’ Forum, Dr. Babangida Aliyu, stirred the hornet’s nest, when he attributed the underdevelopment of the North to the paltry allocations the states in the region receive from the federation account. He called for the scrapping of the 13 per cent derivation given to oil-producing states in the South, so that the states in the North will get more for development.

Governor Aliyu was echoing what the Central Bank of Nigeria (CBN), Mallam Lamido Sanusi, had said in an interview with Financial Times of London. The CBN governor said that the low financial allocation to the northern states was the major reason for the underdevelopment and activities of such groups as Boko Haram. Indeed, since Sanusi flew the kite and followed by Aliyu’s outburst, the arguments have polarised the nation along North and South divides, especially coming at a time when the agitation for restructuring and convocation of a national conference has reached fever pitch.

Genesis

When Sir Arthur Richards (Lord Milverton) divided Nigeria into three regions, in 1954 and Nigeria became a federation, a commission headed by Sir Louis Chick was set up the same year to work out revenue sharing formula. The commission recommended that the total revenue available to Nigeria be allocated in such a way that the principle of derivation be followed to the fullest degree, for the purpose of meeting the reasonable needs of the centre and each of the regions, among others. The 1954 federal constitution embodied most of the recommendations of the commission, especially the derivation formula.

Chick’s formula was in operation from 1954 to 1958, when another commission headed by Jeremy Raisman was set up to replace it. The Raisman Report played down considerably the principle of derivation and instead placed great emphasis on population, which is regarded as an approximate index of fiscal need. It also emphasised the basic responsibilities of the regional governments as well as the need for an even development of the country as a whole. This recommendation was taken and thus the whole revenue allocation formula was reversed. This was the situation until independence.

The next fiscal review commission was appointed in 1964 and was headed by Binn. The report of the commission was not published until 1965. When it came out, it still emphasised on the use of the principle of fiscal need.

In May 1966, the military government under Major General Johnson Thomas Aguiyi-Ironsi abolished the federal system of government and formed a unitary system of government, with the centre taking lion’s share of the resources from the states. After the counter-coup of July 1966, General Yakubu Gowon promulgated a decree abolishing the unification decree of Ironsi and restored Nigeria to federal system of government.

However, the Nigeria did not go back to the old four regions that controlled their resources. The military legislated for the whole country. This was the situation until the May 27, 1967, when the military Decree No. 15, empowered the government to carve out 12 states out of the existing four regions.

Owing to the prevailing situation in 1967 during the creation of 12 states, what obtained was to subdivide federal transfers to each former four regions among the states in a particular region. This arrangement met with stiff opposition and criticisms because of its arbitrariness. This initial creation of states and subsequent ones saw the centre getting stronger while the regions, as replaced by states, are getting weaker.

Against the background of revenue sharing being an agitated issue, the Federal Military Government appointed, in July 1968, an interim allocation committee headed by Chief I. O. Dina, who submitted its report in February, 1969. The committee recommended that in distributing resources the fiscal needs of the states should be the determining factor. This is mainly on the side of distributing oil revenues.

It recommended that only 10 per cent, as against 50 per cent, should go to the mining states, while the remaining 90 per cent should go to the other states through the Federal Government. The government never implemented this recommendation of the commission. Rather, during the period, between 1969 and 1974, the government relied on an interim allocation arrangement.

In 1975, the Federal Military Government promulgated the Revenue Allocation Decree to reverse the situation. This was a departure from the principle of derivation. The non-oil producing states benefited more from this arrangement.


During the Second Republic, President Shehu Shagari, in 1980, set up a commission headed by Dr. Pius Okigbo. It was the first in presidential system of government in Nigeria. The commission significantly raised the revenue of some states at the expense of others and, therefore, it negated the idea of balanced development in the country.

The Supreme Court of Nigeria invalidated the Okigbo commission’s recommendations. However, the revenue Act that was passed by the National Assembly in 1981 was based on the commission’s report. According to the Act, the Federal Government was to receive 55 per cent of the allocation. State governments were to collectively get 30.5 per cent and local governments, 10 per cent. The remaining 4.5 per cent was for special funds. With this, the derivation principle was discarded in revenue allocation scheme.

The military government that took over from Shagari continued in arbitrary sharing of revenue. However, attempt to address the ecological problems caused by oil exploration in the Niger Delta received a boost, when, in 1992, the military government of Ibrahim Babangida established Oil Mineral Producing and Development Commission (OMPADEC).

During the build-up to the return of civilian government, because of the restiveness in the Niger Delta region, there was apparent concern about the declining security situation in the region arising from increased agitation from the oil-producing communities and its consequent threat to the economy.

This made the 1995 Constitutional Conference to recommend that in sharing the revenue, 13 per cent should be set aside as derivation revenue to assist the development of oil-producing communities. The intention was very clear: to financially empower the oil-producing states of the Niger Delta to tackle the monumental neglect and degradation of the area.

The now contentious 13 per cent derivation principle was enshrined in the 1999 Constitution. The affected states started getting the 13 per cent from April 2000, 10 months after the implementation of the 1999 Constitution on May 29.

It was not yet Uhuru for Niger Delta as the region had to contend with another issue: onshore/offshore dichotomy in oil revenue. They considered this a betrayal.

In 1978, the then military government of General Olusegun Obasanjo passed a decree, known as the Exclusive Economic Zone Act. The thrust of this decree or act is in Section 2(1), which states: “Without prejudice to the Territorial Waters Act, the Petroleum Act or the Sea Fisheries Act, sovereign and exclusive rights, with respect to the exploration and exploitation of the natural resources of the sea bed, subsoil and superjacent waters of the Exclusive Zone rest in the Federal Republic of Nigeria and such rights shall be exercisable by the Federal Government or by such minister or agency as the government may, from time to time, designate in that behalf, either generally or in any special case.”

The Federal Government interpreted this provision to mean that revenue derivable from offshore production of oil cannot be credited to the states to which that offshore geographically belongs, using the Offshore Revenue (Registration of Grants) Act, 1971 Cap. 366 LFN. 1990 as guide. On the basis of this interpretation, the Federal Government split oil revenue into 60 per cent: 40 per cent as on-shore/off-shore revenue and proceeded to base payment of the minimum 13 per cent derivation revenue from the 60 per cent. In effect, the Federal Government paid 7.8 per cent of oil revenue as derivation rather than the minimum of 13 per cent enshrined in the Constitution.

This issue of offshore/onshore was finally resolved by the Supreme Court that gave the offshore resources to the contiguous states and this is why some states, particularly, Akwa Ibom, River, Delta and Bayelsa go home with jumbo allocations.

If the report of the 2005 Constituents Assembly set up by former President Olusegun Obasanjo saw the light of the day, the cry by the northern interest groups would have been louder because the oil-producing states demanded 50 per cent as against current 13 per cent. The Constituent Assembly resolved to give to them 25 per cent. This was not, however, implemented.

The constitution headache

It is only a review of the constitution that can alter the present revenue formula, as it concerned derivation. It is going to be a Herculean task for the North to have its way.

The Niger Delta is still not satisfied with the present 13 per cent and like Oliver Twist, are asking for more, while other states in the South are calling for a return to the arrangement when the regions, paid in 40 or 50 per cent of their resources to the centre. They want they states to now take over the resources and pay the Federal Government 40 or 50 per cent of it.

When this scrapping or alteration of the 13 per cent derivation principle appears on the amendment list of the National Assembly, tribal and ethnic chauvinism would override national interest among the legislatures, as they would be divided along ethnic lines. Those from the North would push the amendment, in their favour, while those from the South would resist it.

At the state Houses of Assemblies, the 17 southern states would likely vote against any amendment in this direction, thereby stalling such proposal. The states in the South may also demand a review of sharing of revenue from Value Added Tax (VAT) as over 60 per cent of the industries that generate VAT are in the South.

Another issue that is associated with revenue sharing is the local governments. At present, the North has more local government areas than the South. This means that the North gets more funds accruing to local governments than the South.

What Business Structure Should You Choose?

As you plan starting up your own business, one of the first decisions you need to make is the formal business structure you will assume. Which structure you choose depends on your industry, growth goals, and how many people you plan to involve in your company. It is important to have a full understanding of the business structure you take – but at the same time, I caution you to avoid paralysis through analysis. Make an informed decision and get back to focusing on starting and nurturing the growth of your business.

The following are six types of business structures you could choose from.

Sole Proprietorship

This is the easiest type of business to start. There are no incorporation forms to file or fees to pay with the government. You pick your business name, and get to work. With a sole proprietorship, you avoid double taxation that occurs in corporations as every dollar you earn hits your personal income tax. You pay no corporate income tax.

Because of the ease of starting this type of business, there is a larger amount of risk involved due to the lack of incorporation. How much risk? You are personally liable for everything done in the business’ name. You can hire employees as you would with any other business, but if they damage someone else’s property you can be personally sued for the damages. This puts everything you own at risk.

Partnership

A partnership is where two or more individuals formally agree to do business together. Partnerships are very easy to form, and the income earned from the business is filed on the individual partners’ tax returns. As with a sole proprietorship, you pay no corporate income tax and avoid double taxation.

However, as with a sole proprietorship, there are risks involved. Partners are personally legally liable for not only their actions, but the actions of all general partners. For example, if your partner takes on a business loan, you are also responsible in seeing that it is paid back.

Corporations and Limited Liability Businesses

There are several types of corporations and limited liability business structures that can be used to avoid some or all of the business’ liability undertaken with a sole proprietorship or partnership.

C Corporation

In this business structure, you pool your money together with other shareholders and are given stock in the newly formed business. A C Corporation is viewed as a completely separate tax entity in the Internal Revenue Service’s eyes, so your business can take tax deductions just as an individual would. This also means your profits will be taxed twice: once at the corporate income tax level, and then again when the corporation pays you via salary, bonuses, or dividends. Since the C Corporation is a separate entity, your personal liability is limited.

S Corporation

An S Corporation is a legal entity formed just like a C Corporation with the added bonus that income flows directly to your personal income taxes through what is called “pass through” taxation. There is no double taxation. This structure is especially nice because your liability is limited to that of a regular shareholder, but you only pay tax once.

Limited Liability Corporation (LLC)

An LLC is a state allowed business structure that mixes the benefits of sole proprietorships and corporations while removing - To have a full version of this article, please indicate interest by mail to: adejuyigbe.francis@gmail.com or call: 07093175098

How to Select an Online University

The process of choosing the best online university is not an easy one. But the temptation many students who are new to the process fall victim to is a focus on the end product of higher learning – the degree – and a neglect of the considerations that go into earning it: skills, new resources, career opportunities and a fresh outlook.

At a physical university, these things are a given, with students sitting side-by-side with others and progressing through the coursework together. But sometimes this isn’t the case with online universities that often use message boards, email and instant messaging to communicate between students and instructors. In the process, the connectivity – often cited as a huge component to the learning process for many students – is lost.

Online course offerings vary from school to school, with some providing little to no physical interaction while others offer extensive hands-on experience and direct instruction from teachers. So depending on your abilities and desired level of involvement, it’s important to find the style of instruction that works best for you.

As the process of distance learning continues to grow in popularity, modern universities are dedicating more focus to the experience of learning, adapting many of their successful existing degrees and programs to an online format. So when comparing programs, you should be on the lookout for a single word: accreditation.

Accredited Universities

Simply put, when it comes to investing in online education, you want the best. Just like anything else you buy, products and services produced by quality firms will usually beat out the generic competitors due to a higher level of commitment to quality. The same is true of online universities. And accreditation is a university’s stamp of approval.

An accredited college adheres to a nationally-recognized curriculum and, among other contributing factors, maintains that accreditation through the continuous education of their instructors. Accreditation also greatly impacts the availability of financial assistance, often a major consideration that enables students to achieve their educational goals.

With online education, this becomes exponentially more important. Accreditation deals with far more than just the quality and reputation of an online degree. It’s a direct indicator of how and if your college credits will transfer to other higher learning institutions and, more importantly, if employers will recognize a degree or certificate in consideration for employment. In addition, accreditation is often viewed as a crucial component when determining the transferability of credits, as well as the recognition of qualifications and conferred degrees.

However, if you’ve conducted your research and found that the university offering the program you need is not accredited, don’t give up. Not all online colleges are accredited. Many legitimate universities are either too new to be granted accreditation or they’ve chosen not to pursue it. So if the college you’re interested in is not accredited, do a little extra digging to determine whether or not the program they’re offering is legitimate.