Harvard Business Services, Inc. began offering compliance services in other states about two years ago.  We have found that there is not a great deal of recognition or understanding with regard to Foreign Qualification for Inc.’s and LLC’s in those states outside of Delaware.  In fact, most clients express complete shock at the term “foreign” since most are US citizens.  Their reaction is justified since they are correct – they are not foreign – however their company typically may be.

Webster’s gives several definitions of the word “foreign”.  As far as the process being addressed, the best one offered reads as follows: born in, belonging to, or characteristic of some place or country other than the one under consideration. When we read this definition and carry it to a logistical application – we can make some assumptions.  First – we can take the word “country” out of that definition and focus on the word “place”.  If the company you plan to operate in one state is incorporated in another state – it is deemed “foreign” by the state it is not incorporated in.  Theoretically, the state of incorporation has proper record and documents on file for that process and typically offers authority to do business in their state along with the incorporation process.  If every company that filed in DE were operating in DE – this would not be an issue.  However, the vast majority of the corporate filings occurring in DE are from other states – so this process is both valid and necessary.  So – we can narrow the definition down to a “place” being another “state”.

If you incorporate in one state and operate, have physical presence, revenue trail, predominant transactions or banking in another state – your company will typically need to register as a foreign business entity with that other state.  Corporate procedure is still handled in our country by the respective individual states and if you consider how Federal control would negatively impact this issue – we should be very thankful!  Each state then becomes its own area of control.  Without the process of qualification – companies would exercise mobility without compliance.  This would lead to an abundance of legal and taxation issues which would create a logistical nightmare.  It is logical to assume that the other states involved will want and need to apply proper regulation.

Will 2011 be the year that you start you own business?  Do you have what it takes to make your business dream come true?  It may be unwise to start down a path of entrepreneurship unless you possess both the enthusiasm and the zeal to keep moving forward.  Starting a business is a lot like becoming a parent.  You must not only prepare emotionally and financially; but you must also maintain a long term commitment and be the caregiver to the ongoing business needs.  But how do you know?  The best way to validate your commitment is to take an inventory of yourself.  According to, “The Wall Street Journal Complete Small Business Guidebook” here are five key questions to ask before diving into the waters of entrepreneurship.

1.)   Am I passionate about my product or service? The start-up phase of any business is stressful.  When the hours get long and the profits are lean; you may begin questioning whether you have made the right decision.  Keep in mind, that as the business owner – you are also the chief salesperson for your company.  Your enthusiasm for your product or service will make all the difference when it comes to finding customers, landing deals and attracting investors.   If you are uncertain that you can possess an “ever forward” attitude; the path to success will be elusive.  When it appears that no one else believes in your product or service; you must still believe and stay enthusiastic!

2.)   What is my tolerance for risk? Owning and operating your own business is not for the faint of heart.  Whether it is quitting your day job or signing a new lease for additional space – there can be much risk involved in many of your endeavors.  Sometimes you must leap first and look later.  You may possess enough passion to launch a thousand companies; however, there are many circumstances that will hasten your failure: a location which turns out to be less than ideal, a problem with compliance or a kink in the supply chain.  There are no guarantees that you will be successful.  If you are adverse to risk – entrepreneurship may not be right for you.  But remember – typically those who assume the risks, achieve the rewards!

3.)   Am I good at making decisions? As a business owner – you are the chief decision maker.  Consider these examples of such decisions that may confront you:  Do I work from home or do I lease office space?  Should I hire employees?  Do I pursue high end clients or sell to the masses?  Should I incorporate? (YES)  Should I advertise?   How do I borrow money?  These are all common decisions that each business owner may face.  No one else will make those decisions for you.  When you consider that your decisions as a business owner will also affect your employees and your clients; they can get even meaningful.  Confidence and fortitude are vital to good decision making!  It is also wise to consider professional input with areas of unfamiliarity.

4.)   Am I willing to take on numerous responsibilities? While a corporate employee focuses on a special skill or role within a large organization, a business owner must contribute everything to the business.  You may be sales director one day and debt collector the next.  A business owner must possess enough versatility to meet the daily challenges and be the last line of offense and defense when crucial issues arise.  You wanted to be in charge – so you are!  If juggling many roles is not suitable to you; the entrepreneurial experience may be frustrating. You will wear many hats and it will be essential to develop a good working knowledge of your entire business.

5.)   Will I be able to avoid burnout? Isolation, long hours, abandoning of hobbies and interests and not making time for one’s self or loved ones can lead to burnout.  It’s great to be dedicated and a hard worker – but all work will lead to personal challenges which may be difficult to overcome.  A fine work/life balance must be maintained in order to keep the proper perspective for success.  You must not allow the business to become everything in your life.  Keep up with your family and your personal interests as well.

Take some time to consider these questions and do some soul searching; and if you still think you’ve got what it takes – Go For it!

We are complimented constantly on the quality of our website. Clients tell us how informative it is and how simple it makes the process of filing a company.

But – is having a great website enough?  Online consumers can have questions which cause them to abort their sale. In fact, according to Forrester Research of Cambridge, Mass., 88% of online shoppers who begin a transaction will never complete it.  This is now called, “shopping cart abandonment.”  Research also shows that consumers searching for goods or services will visit an average of four websites within a 30 minute period.  So – how do you turn those visitors into paying clients?

According to The Wall Street Journal, there are three steps to converting visitors into customers and based on my personal experience and success over the last five and a half years at Harvard – I could not agree more!

1.)   Reach out to each prospect very quickly – Given that each visitor is going to view 3 other sites besides yours in 30 minutes or less  –  you will need to get to them within seconds and make a very strong impression.  Lead-management is everything.  Once you get information for a prospect – the clock is ticking and Glenn Houck, co-founder of LeadQual LLC, a firm which helps businesses turn leads into sales, offers a response service which calls leads back within 50 seconds.  Online consumers have grown to expect a speedy response and those companies who are the earliest bird will reap the most “worms”.  It is crucial to monitor the traffic on your site and be aggressive toward all the leads that show interest.  At Harvard, we employ this tactic with calls, emails and mailings and our clients often express that we were even faster with a response than they thought was possible.

2.)   Be persistent with follow-up – “If at first you don’t succeed; try, try again!” Thomas H. Palmer offered these words of wisdom to schoolchildren encouraging them to learn and do their homework.   His words are applicable to just about every worthwhile endeavor in life – you must put forth effort in order to get what you want.  He who gives up after the first contact; will not close many sales.  A lead management software group called Leads360, released data which shows that just by making a second phone call will improve sales by as much as 87%!  They also advocate a monthly six call regimen to facilitate ongoing contact.  According to Leads360 – it seems the magic number of calls it takes to close a client is six.  If calling is not your style – they recommend “nurturing emails” be sent as well.  It is imperative to let these prospects know that you are there and you care about their interest.  At Harvard we employ a system of follow-up which is ongoing and it is not uncommon for us to reach out to clients who appeared on our site 6 months prior.

3.)   Get to know your prospects – If you wonder who your clients are and where they come from you are probably not practicing good lead analytics.  You can garnish good information about your prospects by applying tools to the website and the order process.  For example, all clients should be asked how they found your company and what inspired their interest.  Proper tracking can also show which parts of the site were of most interest and can help determine the motivation for buying.  Shmuli Goldberg, of ClickTale – an online marketing analytics group stresses the importance of “knowing how a customer acts within your site.”  Learn what aspects of the site grab attention and hold it.  Learn also where customers are dropping away from your site.  Track the clicks,  this will help to develop a more friendly browsing experience.  Google analytics offers free tools to help track your web browsers.  Harvard has a very precise system in place to help us get to know our prospects and we utilize the information everyday.

Remember that a great website is just the first step to attracting and keeping your customers; the follow-up  is just as crucial.