How do I decide whether or not to make my company a non-profit?
I want to know the benefits of going non-profit with the kind of product I have. I am struggling with my market and not sure how to advance it at this point. The teaching end is very rewarding, but I need to cover the cost of the product or allow others to donate so I can use the product in teaching small (or large) groups.
THANK YOU TO ALL WHO ANSWERED MY QUESTION. i DID MEET WITH someone from the advancement of women in business and she has over 23 years experience working with and in nonprofits. She helped me see the differences. I will stay "for profit" and try to align myself with a non profit that I have the same vision with. I have a lot of reading to do. I need a great website person and have lots of interviewing to do to get the right people.
Probably the most important question is why you are taking the initiative to start the company. If it is that you have only one burning desire and that is to provide the service, then maybe a non-profit is a good way to go. Otherwise the key difference is that non-profits have no equity, and so you can't get that great multiplier effect that is the reward for taking the initiative of starting and running a business. You cannot sell a non-profit, nor your "share" in it, because nobody really owns it.
1.) I would recommend that you contact your local SCORE office. They have the knowledge and experts (retired executives in various fields and industries) to help you work through your business and situation.
As others have mentioned you really need to do the market research, SWOT analysis, define your mission and vision and develop a business plan. Even if you were to create a NPO you are still going to need a business plan to get people interested in donating to the cause and working on the board of directors.
2.) Just because there is a 'religious' undertone to your business doesn't necessarily mean that you should automatically turn the business into a NPO. There are numerous for profit companies that have a 'religious' element and undertone to them.
you can be a non-profit as long as you keep the 2 companies mission driven call to discuss 203-775-9999
You can get a bunch of tax and funding differences but this is not a question you should have to ask if you understand the legal distinctions for qualifying as a non profit. A principle difference is that while every kind of business needs to be sustainable not for profit means there is a purpose that is superior to money. If that is you then be a non-profit. If you want to trademark or patent something and broaden your profit potential then start a for profit enterprise (the government does not make you be profitable right away...)
Please provide us what business you are doing .
coming to selling product with non-profit your company will get brand name and you will get more sales
After few days you can increase product cost with less margin which will make some product
I hope this will help a bit
It seems you need to answer the question of whether or not there's a viable business behind your product or service before proceeding. You may be offering a product or service that is more suitable to a hobby in which you can get paid rather than a full-fledged business, non-profit or otherwise. As Peter already mentioned, you could try out your idea with an existing non-profit to see if you can roll your efforts into one of their programs.
Using a non-profit structure isn't going to make the situation any easier as you will need to achieve 501(c)(3) status if you want donations to be tax deductible which then brings about a host of regulations (and paperwork).
Depending on your product or service, you may want to operate under an LLC which provides you with some liability protection.
There have been many great answers already. You have not made it clear on your vision/mission which will inform your decision. Having formed several of each type organizations for profit and non profit. I can sat categorically forming and running a for profit business is far easier. Unless you have a very clear plan for public funding (Grants & Donations) I would strongly recommend the for profit route. Consider one of the newer forms such as Benefit Corporation/Certified B Corp or possible an L3C.
I don't know if I would sound a layman or something by saying this but I sincerely feel that it can't get easier than this...
If you have 'Profit' in mind, don't even think of non-profit and if you have 'Purpose' in mind, don't even look for any other option...!
Sorry if this doesn't help you, but this is what I believe...! All the best and find the purpose, means will follow!
There is one confusion, it is only idea or has any plan, if only idea then share on social media and collect the observation and other side if you have any plan e.g Sagheer Business Plan, then discuss with high authority of country or high bossiness icon,
step of business plan are as following:
(0) Market re-search………………………….why?
(1) Market re-search……………………………what?
(2) Market re-search…………………………..How?
(3) Title or name …with respect to name, with respect to business, with respect to location, with respect to era.
(4) Motto…with respect to business.
(7) Mission Statement.
(8) Vision Statement.
(9) Location……with respect to positive and negative aspects.
(11)Finance……..Fix and Running.
(12)Finance Management……with feasibility report in the form of chart.
(14)Business Flow…with the help of flow chart.
(15)Mathematical Model of Production…with cost estimation method.
(16)Promotion Strategy ……..with Probability or regression model.
(17)Risk factor…with your weak points (S (strengths) W (weaknesses) O (opportunities) T (threats) Analysis).
(18)Role of Technology.