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 among 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.

You can get more information and find comprehensive list of Business Associations and Chambers of Commerce at http://www.Tradorf.com/

Incorporating a New Business Association

Incorporating a Business Association is very much similar to forming a Corporation, except that in Business Association you can have the advantage of applying for tax exempt status, which requires a little bit more paperwork and applying for the proper permits from authorities.

Before starting the incorporating process you need to take the following steps:

· Recruit the founding members and secure the start-up funds

· Get the necessary formal commitments from founders

· Develop all proposed member benefits and the mission statement

· Define and create the governing structure for the organization

· Create a framework for your Association

· Form an executive committee (steering committee)

After preparing the above mentioned materials, it is preferable to hire an Association Management Company to start-up the launch. Association Management Companies specialize in providing management services for Associations on a fee basis. Regardless of the Business Association's nature, sector, size or even location, they can provide support, technology and even space and equipment for the smooth operation of Associations. They provide their services to a number of Associations and with the levels of experience they offer, can ensure the smooth operation of your Business Association. However, this task may also be performed by the Association officers, who may handle the task, depending on their experience level.

Incorporate as a Business Association

In order to incorporate as Business Association, here is what you need to do:

1. Choose a name: Choose an appropriate available name for your Business Association that meets the requirement of your country's law and also indicate the nature of its existence. Remember in some countries, the use of certain words is prohibited and the name cannot be the same as other company or organization. You should also make sure that the name will not violate any trademarks.

2. Appoint Directors: Usually when you are filling out necessary documents for incorporation, you should list the name of directors.

3. Filing Documents: File the required paperwork and articles of incorporation, according to the regulations of your country, to the official bodies. Articles of incorporation contain basic structural information about your Business Association such as name, registered office address and so on. Usually this process will incur a small fee.

4. Tax Exemption: If applicable, apply for tax exemptions and include all tax exempt purposes and all other essential information.

5. Create Bylaws: This is a very important task as there are many benefits that may be received from investing additional time, effort, thought and research in the creation of the bylaws. It may be wise to consult with an attorney, to ensure these are written correctly to avoid any future issues. In some countries you are not required to produce bylaws for Associations. However, it could be advantages to do so anyway, as bylaws will set the rules of conduct, authority and procedures for directors and officers in your Business Association. Complete understanding of these rules by the officers will make the operation of your organization much easier. You may find free versions of articles of Association on internet (in some countries authorities will provide you a standard copy) and you can change it according to your needs. Remember you can change it anytime according to your needs!

6. First Board of Directors Meeting: The first order for almost every new incorporated organization is to hold a meeting to approve the necessary standard items for operations. Whoever signed and filed the articles on behalf of the Business Association will hold the meeting. Items to be discussed in this meeting usually are accounting period, tax year, approving bylaws, issuance of memberships, certificates, membership dues, establishing specialized committees, appointing officers, approving transactions, opening bank accounts and tax exemption terms. It is advantageous to keep minutes of the first meeting as well as any other meetings in your records.

7. Licenses and Permits: Obtain licenses and permits that may be required for your corporation.

After incorporating your Business Association, remember that you are just started and you should take necessary actions to develop your organization such as:

· Develop a logo and brand materials

· Develop a website

· Announce the launch of your Business Association to the world through press releases

· Prepare membership marketing materials

· Create a membership recruitment campaign

· Develop a business sector marketing campaign

You can get more information and find comprehensive list of Business Associations and Chambers of Commerce at http://www.Tradorf.com/

Why Start and Incorporate a Business Association

When you are starting a business, one of your main objectives is the potential expansion of your company and to become a major player in the market. There are many ways to grow and today we want to show you an effective way to join forces with your competitors and incorporating a Business Association. Ideally this Association would be representative of your industry and will include major companies in the sector. 

Establishing a new Association is rather simple and inexpensive. Incorporating an Association requires some paperwork but benefits outweigh the time and effort.

But remember there are differences between an incorporated Business Association and non-incorporated Association. We always encourage incorporating your Association as they offer several practical and potential benefits.

Here are some benefits that may help you to decide:

Accessing to More Funds 

By starting an Association you have the ability to borrow funds from banks. Also by qualifying for tax exempt status, it is more likely to have access to public and private grants. You may use these funds in starting campaigns in order to promote your products or industry.

Tax Exemption 

Business Associations usually are exempt from paying property and income taxes. In another word as long as income is related to charitable activities, your Association will not pay income tax on it.

Power of Advocacy 

By forming a Business Association you will have the power to influence politics and lobby among decision-making public authorities and use this power in benefiting of your industry.

Protection from Personal Liabilities 

Your Association can be a target of an unwanted lawsuit due to its advocacy efforts however, incorporated Association will play its role to put you in a better situation and protect you from potential issues. A Business Association may be sued, but its legal protections will shield personal belongings of members and officers such as properties, vehicles and money which are generally protected from personal liability.

Gather Donations 

When you are working for the right cause you will be amazed to know that there are many donors out there willing to help you. Tax laws usually encourage people and corporations to donate funds and properties to non-profit organizations. If your Business Association qualifies as a tax exempt organization, it is more likely to gather donations, as donors can deduct it on federal and state tax returns.

Separate Legal Status 

A Business Association has its own legal status and bylaws and as a result, it has the power to sign contracts in its own name, giving them the ability to have transactions apart from its members or officers. An Association may also take legal action against others if necessary.

Property Ownership 

An Incorporated Business Association has the right of holding a property title. You may find it strange but in some places unincorporated Associations do not have this right to hold a title on their name.

There are also other small benefits to the incorporation of a Business Association which vary by country and location. For example in the United States of America you can get a discount on your postage.

Remember! The main benefit to start and incorporate a Business Association is to have a united voice in the industry.

You can get more information and find comprehensive list of Business Associations and Chambers of Commerce at http://www.Tradorf.com/

Professional Associations and Governments

Professional Associations are usually nonprofit organizations consisting of member companies and a governing body, who are elected members, according to rules and bylaws. They act as a representative of industry sector companies.

Professional Associations have an essential role in the industry sectors. They help the companies to become more competitive in promoting their sector and try to affect policies in their member's favor. They also have enormous potential when it comes to acting on behalf of their industry in communicating with government bodies. They have the capacity to pass messages and information about policies and laws to their represented members. A productive and effective relationship between government and Associations is a crucial concern for the policy making process.

Professional Associations are sources of information about industries and can provide valuable information to governments. Next we are going to explain why this information can be beneficial for governments and why governments should consult with them.

Reliable Communication

Communication between parties is not an easy task, especially when it comes to a group of companies. Associations are the most reliable and effective way for communication between government bodies and their represented companies.

Economy and Employment

Associations represent private and public businesses that are the backbone of the economy and these businesses create jobs and profits. They will contribute to the economy by paying taxes and this will cause economic growth.

Policy Affects

The Professional Association finds out how a policy or law will affect their sector and measures the results. They should also act as an independent resource ensuring that the desired and proposed results would be achieved from the government actions.

Extensive Industry Knowledge

Professional Associations are experts at developing strategic plans, setting standards, and building policies in their field. Associations have access to extensive industry and sector knowledge through their members and officers. This knowledge helps to have more transparency, identify any issues and develop practical solutions to problems. Their knowledge can also be passed to government bodies and policy makers who will need this information in the decision-making process. A Professional Association and Government bodies can form partnerships to avoid any gaps in understanding.

Market Intelligence

An effective Professional Association is trusted to speak on behalf of its members. Being a representative of their members' interest, Associations should have an effective market intelligence network. They should find out what issues are arising among policy makers and businesses and gather all reputable market information. They are also important in organizing and have a place in the policy-making process. Market intelligence gathering shall be accompanied by the knowledge, sharing culture, within the Association.

Practical Information

Professional Associations have access to the best available information gathered by their members. Therefore passing this information to government bodies will help them assess the cost and benefits of policies.

Collaborative Cooperation

Professional Associations are flexible when it comes to working with other groups. They are able to work closely with governments to minimize the differences and find more common grounds. When it comes to their member benefits, they will exert extra efforts to create alliances and additional networks to deliver the results.

You can get more information and find comprehensive list of Professional Associations and Chambers of Commerce at http://www.Tradorf.com/

Collaboration Between Companies Through a Trade Association

By nature we have been raised to be more competitive. Starting at early ages, we want to get better grades in school, win sport games, be successful at our jobs and the list continues. However, in business world we see that companies are trying to work together as well as consumers so they can achieve better results. Let's be realistic! Small or medium-sized businesses do not have the large companies' resources and if they want to compete in the market, they need to bring their resources together.

Collaboration between companies is not just for large companies. Nowadays, many small and medium-sized companies try to use it as an advantage to their businesses. Collaboration between suppliers, customers, vendors, employees or contractors can bring a competitive advantage to companies who have learned to work closely. Collaboration should be defined as a second nature within small and medium-sized companies which share same interests. In short "Collaborate with your competitors and win!"

Let's explain what collaboration is. Collaboration is a strategic partnership between two or more companies with the goal to provide mutual benefit for each company. Of course you should always remember that collaboration is a double-edged sword. It has its benefits, but you may also lose a lot if you are not careful. Sharing the resources of knowledge and knowledge between companies is an intelligent strategy as long as it would be a win-win situation for all parties and it should not compromise either party's competitiveness in the market.

Some companies may be concerned that competitors may steal their knowledge and secrets and use them to their own advantage. But collaboration through Trade Associations is often beneficial to involved parties. Parties will contribute what they know and will learn "Need to Know" options from other companies and in this way they will achieve additional options which would not have been possible otherwise.

But What Are the Advantages and How You Can Do It?

The best way of collaboration is through Trade Associations. Trade Associations are established institutions and offer many tools and services to facilitate this matter which helps companies to make better decisions and be more competitive. Trade Associations bring firms with smaller resources together and let them to play a major role as a group. By doing so there are many practical benefits for such businesses.

• Lower Labor Cost

By collaboration you would be able to connect and manage skilled labors around the world

• Higher Quality

You will have a better opportunity to serve your customers by bringing them in product development and improvement process

• Innovation and Creativity

By having like-minded businesses around, you will have access to valuable sources of motivation, inspiration, support, ideas, experiences and skills along with higher level of competence, which will make you more competitive and helps you to serve your customers better.

• Less Expense

There are so many technological products such as online conferencing for video meetings and clouds to exchange files, which can facilitate communication and exchanging information between you and your partners quickly and securely. By eliminating some of the expensive costs of communication such as travels, you will have higher profit margin.

• Higher Customer Satisfaction

Collaboration with your partners will increase their satisfaction and you will earn their loyalty.

• Higher Revenue

Faster response to opportunities will bring more revenue to your company.

• Effective Supply Chain Management

Through access to information of customs data, products, deliveries and orders, you improve the ability to manage your customer's needs. As a combined group you will also have the power and opportunity to negotiate with suppliers to receive prices typically reserved for larger firms.

• Faster Responses

You will have the opportunity to reduce response times to your customers' demand and this will increase your competitive advantages in the market.

• Lower Production Cost

By increasing the ability to work closely with customers and suppliers on different aspects of product specifications, services such as packaging, quality and delivery will avoid mistakes and its costly consequences and eventually will lead to higher market share at lower costs.

• Smart Decision Making

When you are collaborating with other companies you have the advantage of access to more reliable information and accurate data. Insights and a closer look into partners' strategies and business will improve your decision-making process and will help you to choose wisely.

• Smooth Running Company

With less bureaucracy and by building more relationships, employees and management will interact more and as a result, productivity and creativity within the organization will increase.

• Networking

There is no question that referrals and connections will drive more business to your company. Using these relationships through Trade Associations will bring a wider pool of opportunities to your business.

• Effective Employees

Another advantage of collaboration through Trade Associations is the ways that employees can enhance their networking abilities in order to build more relationships.

• Better Results from Marketing

By joining forces through Trade Associations you will increase marketing options for your products and all involved companies will reach to wider target markets and new audiences.

In short, by joining forces through a Trade Association and converting a competitor to a partner, companies will have the opportunity to attract more customers and improve their place in the market.

You can get more information and find comprehensive list of Trade Associations and Chambers of Commerce at http://www.Tradorf.com/

Professional Associations and Their Roll for Your Business

Professional Associations are representatives of industry sector companies and provide collective services and products to businesses in the same field as well as to individuals who have an interest in the sector. To name a few, these products and services include networking, training, conferences and events, publications such as newsletters and magazines, educational materials and technical advice. However one of the main focuses of Professional Associations is being a representative body of the industry, and present positions and views of its members to media, authorities, agencies, government departments and regulators.

In this paper we are going to discuss the option of joining a Professional Association and benefits that it can bring to your business.

United Voice

Professional Associations are a united voice of their industry and they represent their members in society at many levels. This powerful asset gives authority to an Association and will work for the benefit of their members for a growth of sector. They have close ties with government bodies which ensure members that their voice will be heard among authorities and helps with providing market information to governments to enable them for more effective policy making.

Money Saving

Every business in the world wants to cut expenses. Businesses can save money in the long run by just being a member of an Association. Professional Associations are at the core of their industry sector and try to make members and the industry, visible to the public and potential consumers. They advertise their products in media and offer free expert advice in many areas to their members. Members will also have access to special rates through their affiliations and usually will have discounted rates on government services, which can save them a considerable amount of money. Professional Associations can also get preferential rates by negotiating with approved suppliers. As they are representing a number of companies, quantity of orders would be higher and this would enable them to receive better deals for their members.

Expert Advice

Due to their position and knowledgeable resources, Professional Associations are able to provide expert advice to the members in a wide area such as commercial, legal, technical advice and consulting services. This is a huge advantage which is available only to members. These services will come at a price for other business.

Practical and Useful Information

When it comes to communication and information gathering, Professional Associations are the trusted source for members. They offer a unique range of services and information to their members, like no other source which is based on their interaction with other organizations and individuals, as well as their members. They collect statistical data on sectors and consumers from many sources and provide it to their members which help them to stay competitive.

Industry Events

Professional Associations produce many industry events such as exhibitions, trade fairs, seminars and conferences. These gatherings are opportunities for networking with industry peers as well as other businesses to learn more about issues and new technologies.

Priority in Projects

In order to remain effective, Professional Associations may start new projects which can help the industry sector image or undertake some projects to benefit the members. In such cases, members have an excellent opportunity to become involved from the beginning and enjoy the benefits of a project's outcome.

Reputation

Businesses spend years to attract public trust. In the public eye, membership of a Professional Association is usually a sign of quality and trust. Simply by belonging, it is more likely that are other businesses will inquire about your products. This theme will become more important if you are working in a highly regulated sector.

Market Intelligence

Receiving critical information at the proper time is very important. Professional Associations provide immediate updates on many subjects such as policy changes, technical standards, price changes, market forecasts, statistical data and latest news in the industry. Providing this information will create a safety net for members ensuring them that they are able to make the best possible decision at the right time.

You can get more information and find comprehensive list of Professional Associations and Chambers of Commerce at http://www.Tradorf.com/

Why Join a Professional Association?

Professional Associations are Industry Sector Groups who are usually specialized in a specific sector. They offer many services to companies which help businesses to achieve their goals and stay competitive in the market. According to PEI, 85 percent of business failures will occur in companies with no ties to Professional Associations. As an entrepreneur, one of your primary goals is to grow and avoid any failure. Joining a Professional Association definitely has many benefits for your business. It can reduce the chance of failures in your company for a small fee, which will affect your business in the long-term.

In this paper we are going to review benefits of joining with a Professional Association and see how their services will help your business.

Networking 

It is an essential fact that networking with the right people in your industry will help to grow your business, especially in young industries. By networking with other people in your industry, you can all work together and create a better image of your sector and make your company visible among the right people. Professional Associations gather elite professionals that have deep knowledge about the industry sector and allow the exchange of a variety of ideas and opinions. You need to be a productive member, attend meetings regularly and establish new relationships and friendships.

Cooperation with Other Members 

It is not a secret that many businesses are more successful than others. Some of them will receive many orders and sometimes they may even need to reject the orders simply because they do not have enough capacity. Increasing production capacity is often time-consuming and expensive. The answer to this problem is whether to say no to your customers or as my favorite is, consider outsourcing and using private label quality products. If you are a member of Professional Association, you will have a better opportunity to get these orders from your fellow members.

Shared Knowledge and Experience 

The number of members varies from one Professional Association to other one. In some there may be four or five members and in another 20,000 members. Imagine the experience and knowledge that each member holds. Combining all of these experiences together, gives each and every member increased power and additional opportunities to learn from their wisdom or their past mistakes. There is always the possibility of learning from peers for members who want to develop new skills and expand their knowledge.

Growth opportunities 

It happens every day and you can find it in the business section of every major newspaper, new products, joint venture, mergers and acquisitions. When you are a member of a Professional Association you have more knowledge about other members and you are also visible to them. When this type of opportunity arises, it is more likely that other fellow members consider you for projects.

Emerge as a Leader 

In some cases being a member of Professional Association helps you to emerge as an industry leader. There are opportunities to be invited or volunteer at different events and speak about your industry. This will help to educate people and it will give you the opportunity to develop new relationships. This would also be a free publicity for your brand. You can also write articles and publish it on your organization newsletter or even community newspapers. In this way you can promote your name in front of many people.

There are many benefits if you are a member of a Professional Association including but not limited to subscription to newsletters and magazine, members only offers, conferences and seminars and many more. But remember what you can gain from being a member of a Professional Association is totally up to your involvement with the organization.

You can get more information and find comprehensive list of Professional Associations and Chambers of Commerce at http://www.Tradorf.com/

Trade Association also known as Business Association, Industry Association or Manufacturing Association is an organization founded by group of people or Businesses (Companies) who share the same interest to operate in a specific Industry or Sector. They are funded by contributions made by member Companies.

The main focus of Trade Association (Business Association, Industry Association and Manufacturing Association) is collaboration between companies or standardization. Trade Associations may also offer some other services such as producing Conference, Trade Fair, Exhibition, Event, networking, publishing Magazine and Newsletter or offering educational materials to their members as well as public.

Trade Associations (Business Association, Industry Association and Manufacturing Association) are backbone of Trade and Industry which help Companies and Businesses achieve their goals.

Trade Associations are also known by Industry Trade Group or Sector Association.