Starting a new business can be an exciting and challenging time in your life. Bringing your big idea to life certainly does take guts, but it also takes a lot of planning and consideration. Colorado has the second strongest economic climate in the country and the third fastest population growth.
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It is also ranked the sixth in the country for new entrepreneurs, so if this is where you are looking to settle and plant your roots, you are certainly choosing the right place. With this in mind, we took a look at the key elements you need to start your business.
Take Insurance Out As Soon As Possible
Insurance might be the ultimate grudge purchase, but without it, your business can lose everything in a heartbeat. Getting the right insurance policy is absolutely critical for your business to protect you against every possible risk that your company faces.
We highly recommend looking into insurance curated especially for Colorado based businesses. These unique packages allow you to tailor your policy around your requirements, needs, and company profile.
Insurers can assess your company and ascertain what needs to be included in your policy. So, if you are a client-facing business, for example, you will need to factor that into the policy should a client injure themselves on your premises. You will also need to cover your premises, your stock, and equipment and consider your employees. Workmen’s compensation is a large consideration that many companies omit, and suffer the consequences later.
Create a Comprehensive Business Model
A business plan or proposal is an absolute necessity when getting started. Not only does it allow you to map out the model, brand, and strategy of the organization, it lays a foundation for future partnerships. A proposal can be presented to investors, stakeholders, and financial institutions, and to those who provide permits and licenses.
The proposal needs to include all aspects of the business. From the unique selling point to a breakdown of products and services, to the mid-to-long-term goals of the company, make it as detailed as possible. You will also need to include the due diligence and market research you have conducted as well as a comprehensive competitor analysis to determine the viability and unique selling point of the business.
This proposal is a document that can be presented to potential business partners to help scale your business, but it can be used as a manifesto too. The proposal sets out mid-to-long-term goals for the company which you can base your progress on while you get up and running.
Register Your Business
The next thing to look at is registering your business and acquiring the right permits to operate. Whether you choose to start an LLC, a corporation, or a non-profit you will need to follow a few basic steps.
Firstly, you will need to pick a name for your business and then choose a registered agent who will accept tax and legal documents on behalf of your business. You will then need to acquire an Employer Identification Number (EIN) assigned by the IRS to help identify businesses for tax purposes.
Based on what type of business you choose to start up, you might have to create an LLC Operating Agreement or apply for 501(c)(3) Status if you are choosing to be a non-profit. You will then file your formation documents and pay a fee to be registered. In most cases, this is around $50.
Sort Out Your Finances and Permits
Lastly, you will need to get the relevant permits. Different businesses require different permits. Restaurants, for example, need health and safety permits as well as numerous operating and liquor permits. So, it will be worth your while to research what your industry needs.
There are also a number of federal, state, and local licenses that you might need to acquire. Based on the type of business you are running, you will need to apply for various different licenses at different levels. You can perform search to ensure that you are fully licensed and ready to operate.
It is also highly recommended that you appoint an accountant or a tax consultant. Not only can these professionals assist you in ensuring that you are absolutely compliant, but they can assist in ensuring that you receive as much as you can back from your tax contributions. They can also use their financial strategy skills to help you plan and scale your business. So, choose wisely.
Last Thoughts
In wrapping up, the more you plan ahead and research, the swifter it will be to get off the ground. Make the process as streamlined as possible and accept help and assistance where you can. Good luck!