3 Ways Your Business Structure Affects Your Startup Marketing Strategy

Did you know the business structure you select, and the business name you register, affects your startup marketing strategy?

We’ve already discussed the steps required to choose and to register your business name. Once you’ve decided, it will affect your branding, credibility, and funding you might receive.

1) Credibility: When you register a business entity with the state, you are typically required to add a corporate designator to the end of your name (such as Inc, LLC, or LLP). You might think the designator is a cumbersome addition to your sexy business name, but use it to your advantage!

For one, it is a differentiator, showing you are a responsible business owner. You’ve taken the necessary steps and effort required to register your business with the state, whereas your competition might not have.

Registering your business also gives credibility to your product or service. If you sell homemade pies, your customers probably want to see that your business is registered and that you are licensed to sell them. Comfort food isn’t so comforting when it’s entirely unregulated!

Overall, it reduces the “amateurism” of your startup or small business. Use your corporate designator cleverly in your marketing materials, and let your customers know you’re serious about addressing their needs.

Pretend you’re presenting your startup marketing strategy to these guys.

2) Funding: This one affects for-profits and non-profits alike. If you’re a startup seeking venture capital, most investors won’t even talk to you unless you’ve formed a legal entity, usually a corporation. If your company’s marketing plan includes obtaining investors, consider incorporating.

On a smaller scale, simple activities such as opening a bank account, or applying for a loan, are much easier as a registered entity with an EIN, rather than a sole proprietor using his SSN.

A nonprofit organization’s success in securing funds is directly correlated to whether it has incorporated, become tax-exempt, and registered to solicit funds. Donors want their contributions to be deductible, and they certainly want to know their money is going to a worthy, legitimate cause.

In addition, your organization’s name should reflect its mission and activities. Don’t leave your community (and donors) guessing as to what you do – that’s too much work! As a nonprofit, your name, mission, and brand should run parallel to each other!

3) Branding: When someone hears your company name, sees your logo, or visits your website, what impressions, feelings, and thoughts do they have? Does their impression match your organizational goals, and the place in the market you wish to fill?

For example, registering a name that implies cheapness or uses raunchy humor might suggest that your company is all about fun, or that you and your service are neither high quality, nor very professional.

On the other hand, a name and logo that convey expertise or authority suggests that your company is professional, clean, and efficient, but might not be appropriate for a cheerful, creative industry. For example, if your interior design company’s website looks like that of a German engineering firm, perhaps there’s a mismatch!

Ultimately, only you know your desired audience, so choose a business structure and name that reflect the types of clients you want to attract.

Registering your business with the state is more than simply obtaining liability protection. It can affect how you are able to market and to grow your business, so take the process seriously!

When you’ve come up with a killer name and business structure, contact us – we’ll check to see whether your name is available, and help you start your business!