10 Steps to Starting a Business in Colorado
Many people have dreams of being their own boss and starting their own business. But knowing where to start can be overwhelming and very challenging. Many start up business’ fail due to a lack of market research, strategic planning, funding or a combination. Such crucial questions must be researched and documented before making expensive investments in time and money chasing a dream.
Important Things to Research Before Moving Forward with Starting Your Own Business
- Do people want to buy, what I have to sell?
- Can I sell the product at a price that covers all expenses and provides a profit at some point in the near future?
- Do I have the time and energy to pursue this new business, while supporting myself and my family financially?
- Do I have, or can I obtain the knowledge and skills required to bring this product to market?
- Do I have a source of financing to help me get started and fund the business during the first few years?
10 Necessary Steps to Becoming a Viable Business
Ask for Help
Having experts on your team to provide advice and guidance is imperative for the success of any new business. Ideally you would want to find people or organizations with business backgrounds and/or who have started and run their own businesses to provide support and guidance.
- Networking Groups
- Small Business Administration
- Online Support Groups for Entrepreneurs
Create a Business Plan
A business plan is imperative not only when asking for capitol from a bank or investor but as a tool for holding themselves accountable, tracking progress and controlling the business’s fate. It is the roadmap to get business started and can help keep the business owner focused on goals outlined in the plan, read why a business plan is your most powerful tool to opening the business of your dreams. Learn More
Determine Sources of Funding
Most entrepreneurs’ need to borrow money to start their business. Use your business plan as a tool to get funding for your business from lenders and investors, in fact most potential investors will require to see a business place before considering lending money to any new business venture. There are many resources to find opportunities for special financing using a Google search, check with small local banks and credit union. Also make sure to check with the Small Business Administration -Colorado Office for a list of local lenders they work with and depending on your situation they might be willing to guarantee your loan. Or check out the Colorado Enterprise Fund, their mission is to accelerate community prosperity by financing and supporting entrepreneurs and small businesses.
Determine Legal Structure
Your business’s legal structure determines your state, local and federal tax obligations such as income tax, self employment tax, business owner liability and more. The IRS is a great resource for researching the tax implications associated with the legal structure of your business. Not sure what the right legal structure is for you?
Hear what a CFO with 30 yrs experience has to say!
Choose a Business Name (D.B.A.)
Get inspired! Your business’s name should not only effectively communicate what your business does but also embodies the qualities it identifies with.
Some great resources are:
Shopify’s Business Name Generator
Tips on Choosing a Great Business Name
How Do Potential Clients Find Your Business?
If your new business involves interaction with the public, getting your business on the 1st page of the internet search engines is as crucial as picking the correct location for an office or storefront.. Potential customers need to be able to find your business and/or the traffic count in front of your business can greatly increase your brand awareness and in turn bring in new clients. Learn More
On the other hand, if your business sales come mostly from the internet or you mostly interact with clients over the phone your business can save a lot of money by finding a location that is not on a main thoroughfare and your time should be spent on Search Engine Optimization to help your clients find your business. Learn More
Obtain Required License and Permits
Every State has their own licensing and permit requirements for each industry. Make sure you are complying with Colorado State Licensing and Permit requirements to run your business. Learn More
Register for State & Local Taxes
Educate yourself on what your State and Local Tax obligations. Make sure you are compliant with all taxes due to avoid large penalties in the future.
Colorado Department of Revenue
Hire and Train Employees
Whether you are using subcontractors or hiring retail workers make sure you are complying with Colorado State Labor Laws.
Purchasing a Workers Compensation insurance policy (starting on the first day the employees work) is a requirement of the Colorado Dept of Labor. Also, there are different employer tax obligations depending on the type of agreement you have with a subcontractor or employee. Make sure you know the
Colorado Dept of Labor – Definition of an Employee VS Subcontractor.
Colorado’s Department of Revenue has put together a New Employer Checklist which makes it easy to comply with laws and regulations.
Protect Your Business with a Commercial Insurance Business Policy!
Congratulations, you are officially a business owner! Now make sure your hard-earned assets are protected by purchasing the correct insurance coverage for your business. Give us a Call at 303-960-5290 or send us an Email. We can help you with this!
Open Your Doors for Business
Starting your own business is a lot of work, blood, sweat and tears. But if you stay focused and plan well you have a chance to get to this point.
Denver West Insurance Brokers is a local Commerical Insurance Broker on the west side of Denver in Golden, CO. We also serve the communities of Arvada, Wheat Ridge, Lakewood, Littleton, Morrison, Evergreen and the Summit County and mountain region. Call us at 303-960-5290 and let us get to know your business and match it with the correct insurance coverage to ensure your success!