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SHELF CORPORATIONS: THE MARKETING ADVANTAGE
There's a distinct marketing
advantage in having a shelf corporation or shelf LLC. A business in
start-up is hypersensitive to credibility issues. There are ways to cope
had years of experience in the industry and now striking it out on your own.
This is something you can fall back on. Doing business as a two year old
company is good marketing decision.
There's a niche you're able to serve better than anyone else.
this advantages, some clients/customers are looking at where they may get
ripped off. Their "gun shy" stance is something to take into
consideration. Customers don't want to pay for something twice and they
want to be sure you'll be there tomorrow. And although they don't want
you to make snap judgments about them if the tables were turned, but they'll
do it to you in a heartbeat. Why? They are just looking to make a
good deal, and low price and fear making a mistake. That FEAR drives
them to avoid start-up companies because no one wants to look stupid.
A SHELF COMPANY AN ADVANTAGE IN YOUR SITUATION?
decide whether having a new corporation will make your clients nervous about
doing business with you. The key here is OPPORTUNITY COST. How
much business are you losing by having a new company? This is tough to
measure in real terms, unless you're losing the sale.
whether having a shelf corporation increases your credibility enough to help
you get the sale. Would you give a 25% deposit on a $20,000 job to
remodel your kitchen if the business was formed last week? In the
remodeling and construction industry, credibility is important. In the pizza
industry, it's not. Either the pizza is good or it's not. The key
here is how long does the customer live with the decision to buy? As for
the kitchen, a long time. For the pizza, an hour.
BUYING A SHELF
CORPORATION OR SHELF LLC ENABLES YOU TO KEEP THE SALE WITHOUT FALLING VICTIM
TO "START-UP PREJUDICE."
aged shelf corporation, or aged LLC, enables you to say, "XYZ Company was
incorporated in 2003 and I've been in the industry for the last five years."
You may have acquired the company last week. You are avoiding the "THEY
ARE JUST STARTING OUT HEE-BEE-JEE-BEE'S" that lead to the loss of a sale.
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your plans and goals, and make a few recommendations.