September 21, 2012 Category: Business & Corporate Law
Technology is one of the fastest growing and most innovative sectors in business today. The industry holds plenty of opportunity for an entrepreneur with a creative idea for starting a new business . Michigan is attracting more entrepreneurs who have decided to base their start-up technology companies in the state. One of these companies is an innovative web firm called Quikkly, which is an online coupon service.
The company offers short-term deals which it randomly distributes through text messages or Facebook. The offers give the best deal to those who respond to the advertisements first. For example, a $10 coupon to a store will only cost $1 for those who respond earlier, while at some point the cost will go up to $8. Not only do first responders obtain better deals, they also gain bragging rights, according to the founder of Quikkly.
The company’s founder started Quikkly as a response to what he saw as weaknesses in the daily deal site Groupon. He viewed Groupon as a site which fostered a passive response from consumers, while also building brand erosion for their clients. Groupon offers are emailed and are available to be redeemed for 3 or 4 days, which does not compel the consumer to act as strongly as Quikkly’s model.
Michigan companies such as Quikkly require careful planning in order to ensure the business has a good start. It is important that a new business is formed properly in accordance with applicable state and federal laws. This usually requires a considerable amount of paperwork and due diligence, which often requires making important legal decisions. For example, an entrepreneur will have to decide what type of business entity to form, as each type of entity has its own advantages and disadvantages. The right advice may go a long ways toward giving a startup the best chance for success.
Source: Forbes, ” Detroit-based Startup Quikkly Rewards Nimble Bargain Hunters ,” Sarah Evelyn Harvey, Sept. 10, 2012