Decision on Starting a New Business Association

In the modern business world everything changes rapidly and businesses need to respond to these changes fast. They can use all the available supports and a rather easy and effective means to respond is by starting a “Business Association”.

For every Association in the world, there has been a moment of decision to start a new organization when a group of businesses unite for a common goal and said “We need a representative for our products and services in our sector”.

Starting a new Association is rather reasonable and simple, but the question that you should ask is, “Is this the correct action for your business to initiate?”

In this paper I am going to help you with your decision and whether it is feasible and logical to start a new Association.

Appropriate Situations to Start a New Business Association:

• Regulation changes in business sectors.

• No Association in your sector to represent your industry.

• Changes in business sector nature for which the existing Association’s structures are not feasible.

• Existing Associations will not satisfy your business needs.

Who Should Join to New Business Association?

In order to start the new Association, the group of businesses needs to join forces together. Ideally this group will be a representative of the industry and will consist of major players in field. Remember it is more likely to achieve your goals when the Association consists of a majority of the business sector and powerful players.

Before you start incorporating your Association, there are some very important issues that you should clarify which will help you decide whether start your Business Association or not.

• Similar Business Associations

First of all, you have to find out if there are similar Associations with the same mission of your proposed organization. If there is a similar organization which serves the purpose of other companies in your field, you might want to consider joining them instead of starting a parallel organization, unless it is an ineffective organization. In this case many of the members may join you on your cause.

• Competitor Organizations

Find out if there are any competitors to your Association that may jeopardize your Business Association.

• Mission

Specify the proposed mission of your Business Association.

• Goals

Clarify the goals you want to achieve and create a schedule for reaching them.

• Sector Reputation

Find out about Product/Service reputation in the market and ways to improve it

• Similar Companies

Determine the number of companies in similar fields, who might join your Business Association.

• Industry Growth Possibility

Find out about the possibility of growth and probable new start-ups in similar fields during a specific time.

When you have figured all the above mentioned issues and reached the conclusion that starting a new Association is the best way for you to continue, you should choose the type of Association.

• Unincorporated Business Association

Significant numbers of Associations in the world are unincorporated as it is the least costly and most flexible type. It is an easy and simple process with a minimal amount of paperwork. In some countries it is not even necessary to register the Association with official bodies. However with this type of Association you lose considerable advantages received with an incorporated Business Association.

• Incorporated Business Association

When you are going to start an Association, incorporating one would be the right move. You can benefit from many advantages that they offer such as access to more public and private funds, tax exemption if you qualify, power of advocacy, protection from personal liabilities, donations if you qualify for tax exempt, separate legal status, property ownership rights and sometimes even discounts on your expenses.

Following you will find the next steps you should take:

• Benefits that this new organization will bring to its members

• Regulatory issues about incorporating Associations

• Determine type of organization such as tax exempt, non-profit or for profit

• Needed personnel and employees

• Availability of funds to start your Business Association

• Estimating cost and expenses of running the Association

• Possibility of generating revenue by offering services such as courses and educational materials

• Membership fees and dues that each stakeholder shall pay

• Competitiveness of your Association amongst other similar organizations

So far, we have covered some of the basics which will help you to make better decisions on starting a Business Association.

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