Want to join the ranks of the Zuckerbergs, Trumps and Winfreys of the world?
Just start your own billion-dollar business.
Simple, right? Well maybe not. Statistically speaking, you're way more likely to get struck by lightning than to build a billion-dollar enterprise.
The good news? While being struck by lightning is largely due to luck (bad luck, that is), structuring a company for success is a strategic, intentional process over which you have a great deal of control. And according to this Inc.com article, MIT researchers have identified four attributes of start-ups that correlate strongly with growth and profitability. If you're serious about scaling up your business, stack the odds in your favor by doing these things:
Choosing the right company name.
Thinking of naming your new business after the city you live in or your family? Go back to the drawing board. Billion-dollar companies typically have shorter names that are not related to location and do not refer to the owners (sorry, Miller's Family Diner of Evanston). Other pitfalls to avoid include: making your business name so obscure that customers don't know what it means; including a success cliché as part of your company name (e.g., Apex, Top, Summit); and combining part of an adjective with a noun to form a new word (e.g., Ameri-, Quali-, -Tron).
Structuring as a corporation.
While sole proprietorships, partnerships, LLCs and corporations each have distinct advantages, MIT researchers found that corporations, though expensive to form and subject to extensive record-keeping, are the most likely to grow into billion-dollar businesses.
Setting up shop in a business-friendly state.
For a number of reasons – including corporate law expertise, favorable tax codes and corporate statute flexibility – states like Delaware are more business-friendly and offer distinct growth advantages. In fact, more than half of all U.S. publicly-traded companies and 60% of Fortune 500 companies have incorporated in Delaware.
Filing for patents and trademarks early on.
Obviously, patents and trademarks protect intellectual property, branding, inventions and the like from being copied by competitors. In addition, they also signal to both the public and potential investors that you're serious about your business concept – and that it's unique enough to want to defend.
Achieve. Grow. Thrive with PrideStaff.
While building a billion-dollar company isn't as simple as 1-2-3-4, PrideStaff is here to support your success. Whether you're looking to grow your core team, tap into new markets, expand your geography or enhance profitability, our strategic staffing solutions can help you achieve your goals. Contact your local PrideStaff office today to learn more.