Florida's economic development incentives are constantly under scrutiny. Law makers are asking for more transparency with these programs. See article: (http://news.wfsu.org/post/lawmaker-wants-keep-closer-tabs-incentives). Are you prepared for your company's numbers to be called out? Don't go through this process alone. We can help you track and report accurate numbers and provide the appropriate documents required by the state to prove that you successfully met your project goals.

Fewer Tax Incentive Dollars?

Here is an article from the Orlando Sentinel. To summarize, the next fiscal year may have a reduction in incentive dollars. This may mean that fewer incentives will be offered to legitimate businesses locating or expanding in Florida. It will be interesting to see how this affects the number of job opportunities available in the state. Maybe the state will establish tighter policies for these programs. Ultimately, the businesses participating in these programs will be required to jump through bigger hoops.

 

Click on the link below to read the full story. http://www.orlandosentinel.com/news/politics/os-capview-column-deslatte042113-20130419,0,2201622.column

Navigate the Economic Incentive Reporting Process with Ease

FREE ECONOMIC INCENTIVE TOOLKIT

Businesses typically participate in economic incentives to help defray some of their relocation/expansion expenses. However, they do not always fully understand the process. Most businesses are surprised by the amount of work required to track their project goals and report their project results.

To help businesses successfully navigate the economic incentive reporting (compliance) process, MarLynn Consulting developed the Economic Incentive Toolkit. This toolkit is being offered as a free resource.

 

Who can benefit from this toolkit:

• The economic incentive toolkit can be used as a resource for staff of Economic Development Organizations (EDOs) who would like to understand the compliance/reporting process. This would allow them to assist those businesses who are unsure of what happens after a project is awarded.

• This toolkit can also be used as a resource for businesses that have begun the economic incentive process. Businesses will benefit from understanding what is required of them prior to completing their negotiations.

Major Topics Covered:

• Economic incentives life-cycle
• Why businesses forfeit their economic incentive payments
• Importance of compliance management
• What a business should have in it's toolkit
• Case studies
• Show me the money - The payment and reporting process
• The monitoring process
• Frequently asked questions

The economic incentive toolkit is available free of charge to EDO's, companies approved for an economic development incentive project, or businesses considering applying for an incentive project. To request a copy, contact MarLynn Consulting at (850) 727-0293.

Florida's Legislative News - Economic incentives

Here is a recent article by Aaron Deslatte for the Orlando Sentinel.

As the legislative sessions continue, we will be hearing differing views on economic incentives and whether they benefit both Florida businesses and Florida's taxpayers. Here is a link to the article:
http://www.orlandosentinel.com/news/politics/os-capview-column-deslatte021713-20130215,0,3577875.column

Are Economic Incentives Truly Worth it For Taxpayers?

I read an article critiquing Enterprise Florida's handling of economic development incentives and whether it is worth it for Florida's taxpayers. To read the full article, click on the following link:
http://www.orlandosentinel.com/news/local/breakingnews/os-enterprise-florida-defensive-20130212,0,3714847.story

Approved Florida Economic Incentive Projects

Recently, Enterprise Florida announced the approval of four new economic incentive projects.  Here is some basic information about each project:

• Pratt & Whitney announced plans to expand itsmanufacturing capabilities in West Palm Beach, Florida with a $63 million capital investment and the addition of some 230 aerospace engineers.

• ECI Pharmaceuticals, a specialty pharmaceutical manufacturer and manufacturer, recently announced an expansion of its manufacturing and R&D and analytical testing laboratories in Fort Lauderdale that will result in 20 new jobs and $1 million in capital investment.

• Biologics Development Services will open a new 6,000 SF scientific laboratory in Tampa, creating up to 15 new jobs and $1.2 million in capital investment.

• Mazor Robotics, a developer of surgical robots and related products, plans to locate its US headquarters in 15,000 sq. ft. of space in Florida Hospital's Health Village in Orlando

Will Governor Scott meet his goal of creating 700k jobs?

Here's an interesting article from the Sun Sentinel discussing whether Florida's Governor Scott has been successful in his quest to create 700,000 jobs in 7 years.  http://www.sun-sentinel.com/os-scott-jobs-agenda-curtainriser-20121222-42,0,2093703.story

What are your thoughts?  Do you think the Governor is on target to meet this goal?

Florida Praised for its Handling of State Economic Incentives

In this article written for the Orlando Sentinel, The State of Florida received high marks for its controls over economic incentives, compared to other states. 

A report done by the Pew Center in DC reviewed incentives passed in 16 states since 2007 to determine if these states administered adequate controls over these programs.  Florida scored high marks because as other States steadily increased their incentive dollars, the state decided to cap its total incentives funding over a number of years.
To read the full article, click on the link http://thesent.nl/12psIKU.

Based on the amount of scrutiny economic incentive programs have faced within the last five years, it is in the best interest of each state to ensure adequate controls are in place to prevent mis-use of incentive funding.  However, states should also be cautioned to not make the incentive process so bureaucratic that they miss out on opportunities to bring in businesses that would truly benefit their communities.

Grants Available for FL companies to Participate in Trade Exhibitions

If you have a business that produces a product you'd like to export to other countries, it may be a good idea to  participate in one of Enterprise Florida's trade events.  These trade events give you access to businesses in other countries who may need your product.

Attending these events may take some investment on your part.  However, there are grants available to assist you in this endeavor.  You can apply for a grant to help you defray some of the associated costs.  Here is a link to a flyer for more detailed information and a copy of the grant application.

http://www.eflorida.com/download/SBA_docs/SBA_Target_Sector_Grant_Flyer.pdf

Good luck on taking your export company to the next level!

You Can Boost Your Business Through Training - Here's How

In this article, a Florida small businesss touts the benefits in providing training for his employees.  He also highlighted how he was able to recoup some of the total cost of training by participating in Florida's workforce training grants.  To read the full article, click on the following link: http://on.tdo.com/TJRF0o

Florida's Quick Response Training (QRT) To Be Increased to $12M

The Quick Response Training (QRT), a tool Florida uses to help businesses train their workforce may be getting a boost this year. 

During an economic downturn, many businesses wonder how they can afford to train their team.  However, with programs such as the workforce training grants, a business may have an opportunity to increase the skills of its employees at a reduced cost.  Grants like the QRT allows a business to subsidize 50 - 75% of its direct training costs for a year.  

To read the full article, click on the link: http://www.jaxdailyrecord.com/showstory.php?Story_id=538134

This significant increase in program funding would help many business owners.  The catch though is, how do small businesses take advantage of these opportunities?

State may try to recover Digital Domain incentive money

I read an article written by a Palm Beach Post Staff Writer indicating that the Florida Department of Economic Opportunity is considering clawbacks for incentives paid to Digitial Domain Media Group. According to the article, Digital Domain was paid a total of $20 million in four installments in 2009, 2010 and 2011 under the Quick Action Closing Fund incentive program.  Unfortunately, the company did not meet the overall requirements for the program and thus, was responsible for returning a portion, if not all of the funds to the State.  Here is a link to the full article http://bit.ly/S6NoU4.

This situation with Digital Domain shouldn't scare businesses from participating in economic incentive programs.  However, I strongly urge businesses to make realistic estimates of what they'll be able to accomplish.  Many businesses overestimate their goals to qualify for a larger award amount.  This is definitely not a sound strategy when pursuing incentives. 

I would say though, that this situation should encourage businesses to hire a firm who fully understands the incentives process and requirements BEFORE they start pursuing these incentives.  If you are considering economic incentives, give us a call.  We have the experience you'll need to make the BEST decisions as it relates to your incentives.

New Economic Incentive projects in Bay County

Two economic incentive projects are expected to be approved for the Bay County area. These projects will create a total of 291 jobs.  State incentives include a total of $873 in QTI dollars.  Click on the link below to see the full story.

http://www.newsherald.com/news/economic-105553-incentives-panama.html

FL Chamber Survey - Why Businesses relocate to Florida

I read this article today and thought it was interesting enough to share. I can't say that the survey results fully discussed why businesses move out of Florida, although it gave some insight as to why they relocated or stayed here. I think it would be good for the State to know why companies are leaving. This would give them an opportunity to tweak what is being done already to make it more attractive for businesses to say.  See full article here: https://www.flchamber.com/print/7609

Don't Forget! You Need to Incorporate Your Nonprofit and Develp the Rules of Engagement

In the process of forming an organization, you will be required to file Articles of Incorporation with the appropriate State agency.  For example, if you live in Florida you will be required to submit your forms to the Department of State, Division of Corporations.  Articles of Incorporation provide your state with information about your business, such as its name, the names of the persons organizing the business and the purpose of the business.  Forming a corporation also limits the liability of the owner(s) and staff of the organization, as well as its board members.  The rules for incorporating your organization may be different depending on which state your business will operate in.  Be sure you know the rules before you “set up shop”.

I learned this the hard way.  Some years ago, I was a member of the Board of Directors of an organization that did not research, and ultimately did not file the required documents necessary to protect all parties involved.  Granted, some paperwork was filed, but it wasn’t enough to protect the organization.  As a result, although the organization was operating as a nonprofit, it legally did not have the rights of a nonprofit.  This later resulted in the organization being caught up in an IRS nightmare.  Fortunately, today that organization has settled all of its debt with the IRS, but, at what cost?

Another requirement for setting up your nonprofit organization is to develop its bylaws.  The bylaws stipulate how the organization will operate.  It is essentially an agreement between the nonprofit and its owners detailing the “rules” of running the organization.  As this is a binding contract, bylaws should be approved by the Board of Directors.  Bylaws are not a requirement for filing your 501(c)3, but it is in your best interest to have one prepared – before you start your business. 

Again, you must plan the whole process of starting your nonprofit.  Some documents are mandated by law, while others are required to ensure your organization’s success.  I suggest preparing a checklist of all the required items and a realistic timeline.  Check each item off as you go through the process.  Not only will you be motivated when you see how much work you’re getting done.  But, this process also helps you see the separate pieces of the puzzle as a whole – the BIG picture.

 So, step #4 when starting a nonprofit organization is to create and file the Articles of Incorporation and the bylaws.

Recruit Your Board of Directors

As I’ve mentioned before, there is a logical process that should be taken before embarking on the journey of becoming the owner of a nonprofit.  If done properly, you will be on the road to a successful nonprofit endeavor.

In an earlier post, I discussed the benefits of developing a realistic business plan, which will dictate the operational processes of your nonprofit business.  I also discussed the idea of knowing the purpose of your business – i.e. Who will be served, what will be served, and are these services beneficial to your community?

Form a Board of Directors

The next step in the process is to recruit qualified members of your community to assist in determining the needs of your organization.  Unfortunately, in my experience, many start-up organizations create their Board of Directors using people they can influence.  This is definitely not the way to go if your goal is to grow a successful nonprofit business. 

The key word here is “qualified”.  Since the Board of Directors’ main goal is to ensure that appropriate decisions are made on behalf of the organization, it is in your best interest to choose board members who bring a variety of qualifications and experiences.  For example, I believe that every organization should have an accountant, or someone who can interpret financial data on its board of directors.  This usually prevents surprises in the future.  I also suggest having a member of the board who has experience in whatever service is being offered by your organization.  This will provide more credibility to your organization.

Ultimately, it is your decision who you select to be a member of your organization’s Board of Directors.  However, forming your board of directors should require careful thought.  Recruit your board of directors based on what you want to accomplish.  Consider the skills and qualities that fit your organization’s needs.  Then, identify those individuals who meet those needs, and who support the vision of your organization.  As you can imagine, this is not an easy process.  However, if you put in the time and effort in the beginning, you will avoid conflicts in the future.

So, step #3 when starting a nonprofit organization is to recruit qualified Board Members.

WHAT YOU NEED TO START A NONPROFIT

I mentioned in an earlier post http://bit.ly/NyUKLc that the first step in starting a nonprofit is developing a plan.  It is interesting that some people believe they don’t have to create a realistic business plan for a nonprofit.  I’m not sure why this is the case, when a business is a business, whether it is for-profit or nonprofit – the rules of business startup apply to both.

Your Business Idea Must Serve a Suitable Purpose

Like other business types, you have to decide what the true purpose of your business will be.  Have you considered what type of services you will provide?  Do those services complement each other?  Does your service meet the needs of your community?  Yes, your idea for a business may be great, but you have to meet certain criteria to qualify as a nonprofit or charitable organization.

So, step #2 when starting a nonprofit organization is to determine your purpose.

WHAT YOU NEED TO START A NONPROFIT

It seems as if 1 out of 5 of my recent conversations has been with individuals who are considering starting a nonprofit organization. In the Tallahassee community there are a large number of people who are truly passionate about helping others.  This is definitely commendable!  These conversations have piqued my curiosity as I wonder how many people have done the research required to start and operate a successful nonprofit organization.  A nonprofit is like any other type of business in that certain steps must be taken before the business can be successful. 

You Must Have a Plan

I believe the first step in the process (developing the business plan) is the most time consuming, but it is probably the most important step.  Unfortunately, this is the step where most people take a shortcut.  I believe it was Harvey MacKay who said, “If you fail to plan, you plan to fail”.

You may ask, what’s so important about writing a business plan when I have all of my ideas in my head?  My answer: We usually have so many things on our minds, that it is difficult to keep track of everything. Plus, when you start writing your ideas on paper, you can begin to put the missing pieces together.  Think of your plan as a road map to a successful business.  If you do the research and you plan properly, your chance of succeeding will be greater.

So, step #1 when starting a nonprofit organization is to create a thorough business plan.

How To Get a Training Grant

In earlier posts, I advised that there are training grants to help you reduce the cost of the training component for your EMR conversion.  I shared the criteria to determine if you qualify to receive an Incumbent Worker (IWT)training grant.  I also provided information on costs that are eligible under the grant.

Now that you know the requirements of the IWT training grant, you're probably wondering what's the next step. So, let's talk about what you need to do to get started.

There are 2 major steps to consider:

1. Application Phase - This is the phase where you apply for the training grant. The state uses your application to determine if you qualify for an IWT grant award. The process of applying for the grant takes some time, but it is well worth the effort.

On your application, you will provide information related to your anticipated training, outcomes and the associated costs (both direct and indirect). You also will be required to provide documents to support that your company is financially stable and there are no outstanding taxes due to the state.

2. Payment Request Phase - This is the phase where you provide documents to support the eligible training and training costs. Since the grant is reimbursable, you will have to prove that the costs were paid prior to your payment request.

Likewise, you are required to provide evidence that your employees participated in the approved training(s). This process requires you to maintain good records of trainings and their associated costs and payments.

Do you want to know if you qualify for an IWT grant?  Give me a call at (850) 727-0293. I will provide you with a detailed checklist, which allows you to consider the criteria for approval. Then, we'll go to the next step.

How To Reduce Your EMR Training Costs by Up To 75%

In my last post, I told you about an opportunity to reduce the training component of your EMR conversion by up to 75%. The Incumbent Worker Training (IWT) grant is a resource that can be used by qualifying Florida businesses to help defray some of the costs associated with employee training.

This is exciting news! If you have already researched the cost to convert to the electronic system, you understand that this conversion process is not inexpensive. You cannot install a new software system without training your team on the best way to use it. The IWT grant can make big a difference in the type of training your staff receives.
Who is Eligible to Apply?

Now I understand the BIG question in your mind is "Do I qualify?" If you answer "Yes" to the following questions, you are eligible to apply for an IWT grant:

• Are you a for-profit business?
• Have you operated in Florida for at least one year?
• Do you have at least one FT employee (other than owners)?
• Will the training be completed within 12 months?
• Are you current on Florida taxes?

What is Eligible?
The IWT grant will allow you to reduce your direct training costs by up to 75% (or $50,000). So that you'll be clear on what is eligible, I have included the following list:

• Training fee from an outside vendor
• Cost of employee-trainer
• Cost of training materials

I'd like to warn you that these grant funds will not be available for long. This fiscal year, the State received $5 million dollars to fund this program. Of course, with the recent budget cuts, the funding for the upcoming fiscal year has been reduced to $2 million. What that means to you is: the sooner you apply, the better.

Stay tuned for information on what steps you need to take next....