by eclewis | Jan 5, 2026 | Business News
Developing Business Ideas
In a previous post, we talked about the importance of diversifying your business and the benefits that it can have toward your success. This time, we’ll talk more about developing an initial idea for a business.
Developing a Strong Business Idea: Differentiation, Innovation, and Smart Risk (2026 Update)
In a previous post, we discussed the value of diversifying your business and how doing so can strengthen long-term success. In this article, we’ll take a closer look at where great business ideas come from — and how to evaluate whether your idea has the potential to work.
Most successful businesses begin with one of two core approaches:
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Doing something that other businesses already do — but doing it better, differently, or more effectively, or
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Doing something new or substantially different from what currently exists in the market
Both paths can lead to success — and both come with their own risks and opportunities.
Competing in an Existing Market — with a Meaningful Differentiator
If your business model is similar to others already operating in your industry, your success often depends on having a clear differentiator. That difference may come from:
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Superior customer service or client experience
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Greater expertise or specialization
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More convenient hours or location
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Technology-enabled efficiency
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A stronger brand or reputation
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Pricing strategy or value-based offerings
The benefit of entering an existing market is that you already know customers exist and that the model can work. You’re not reinventing the wheel — but you do need a compelling reason for customers to choose your business over others.
Introducing Something New — Innovation and Its Risks
Launching a business that does something new or significantly different can create exciting opportunities — but it can also carry greater uncertainty.
A lack of competitors may mean:
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Others have tried and failed
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The idea requires regulatory or licensing approvals
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The market isn’t large or ready enough to support the concept yet
On the other hand, being unique can make it easier to gain attention and early customers — at least until competitors eventually follow, which they often do if your idea proves successful.
Both innovation and imitation require strategy, planning, and resilience.
Blending the Two Approaches
In many cases, entrepreneurs find success by combining existing concepts in a new way — creating a hybrid business model that delivers value from more than one direction.
Examples include:
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Service-based businesses that integrate technology or automation
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Retail concepts paired with experience-based offerings
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Professional practices that also offer education, training, or digital resources
This approach can allow you to:
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Attract customers from multiple audiences
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Differentiate without starting from a completely untested idea
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Spread risk across more than one revenue source
It is also closely aligned with modern diversification strategies many businesses use to stay adaptable in changing markets.
Opportunity and Uncertainty in Today’s Business Environment
The pace of technological change, shifts in consumer behavior, and evolving economic conditions mean that ideas that didn’t exist five or ten years ago may now be viable — and sometimes even in high demand.
However, that same pace of change also means:
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Markets can evolve quickly
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Competitive conditions can shift faster than expected
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Long-term projections are often more uncertain than they once were
A strong business idea in 2026 requires not only creativity, but also research, validation, and thoughtful planning.
Before You Launch — Get Professional Guidance
Whatever idea you are considering, it is important to talk with experienced advisers before moving forward. Legal, financial, tax, licensing, and regulatory considerations can significantly affect risk, structure, and long-term viability.
A knowledgeable small-business attorney can help you understand:
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Formation and ownership structure options
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Liability and compliance risks
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Contracts, financing, and partnership considerations
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Intellectual property and branding protections
Good planning early in the process can save significant time, stress, and expense later.
If you’re thinking about starting a business or exploring a new business idea, I would be happy to help you evaluate your options and understand the legal considerations involved. Contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., your Denver Business Attorney.
Phone: 720-258-6647
Email: elizabeth.lewis@eclewis.com
by eclewis | Jan 5, 2025 | Business News
Colorado Employment Law and Non-compliant Employees
Dealing with a Non-Compliant Employee: Listen First, Then Act
For many business owners and managers, few responsibilities feel more uncomfortable than disciplining — or potentially terminating — an employee. When an employee refuses to follow policies, procedures, or reasonable instructions, the instinct is often to “get to the bottom of it” before moving toward formal discipline or termination. That instinct is usually right. Addressing non-compliance effectively requires both clarity and empathy.
This article outlines practical steps for understanding what’s driving the behavior, how to respond, and when it may be appropriate to set firm consequences — including termination — under Colorado’s at-will employment framework.
Start by Understanding the Issue
Non-compliance almost always has a reason behind it. You may or may not agree with that reason, but you should understand it — and you should hear it directly from the employee. Avoid relying solely on second-hand information from supervisors or coworkers; doing so can distort the facts and leave the employee feeling unheard.
Schedule a private conversation and ask open-ended, factual questions:
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“Help me understand what’s getting in the way of following this policy.”
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“Is there something about the process that doesn’t make sense or feels unworkable?”
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“Is there anything happening that I may not be aware of?”
Listen without interrupting, reflect what you’ve heard, and confirm that the employee feels understood. Only after that foundation is built can you fairly evaluate next steps.
Use the Right Type of Motivation
If the employee’s explanation does not justify the non-compliant behavior — but the employee is otherwise valuable — consider whether coaching or motivation may help. Different people respond to different incentives:
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Positive motivators (clarity about growth, trust, recognition, workload support)
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Accountability-based motivators (clear expectations, deadlines, performance visibility)
Avoid vague statements such as “you really need to do better.” Instead, define the behavior expected, why it matters to the organization, and how you will measure follow-through.
Document the conversation, expectations, and timeline for improvement.
When It’s Time to Set Firm Expectations
After listening and clarifying expectations, there may be situations where continued non-compliance cannot be tolerated. In those cases, it is appropriate to clearly state that compliance is required as a condition of employment.
Management expert Alison Green recommends setting expectations plainly and noting that failure to comply may jeopardize the employee’s job. The goal is clarity, not threat — the employee should fully understand the seriousness of the situation and what will happen if behavior does not change.
Provide:
A Note on Colorado’s At-Will Employment
Colorado follows the doctrine of employment-at-will. In general, this means that — in the absence of a contract or other legal protections to the contrary — either the employer or employee may terminate the employment relationship at any time, with or without notice.
However, termination cannot be for an unlawful reason, such as discrimination, retaliation, or other protected-class or protected-activity violations. Even when termination is legally allowed, employers should still:
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Document performance and behavior issues
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Apply policies consistently
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Follow any written procedures in handbooks or contracts
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Seek legal guidance in uncertain situations
Proper documentation can be especially important if the employee later disputes the termination.
Laws and regulations evolve over time. Before taking disciplinary or termination action, consult a Colorado employment attorney to ensure your approach complies with current state and federal law and with your specific business circumstances.
Get Guidance Before You Act
If you are dealing with a non-compliant employee and want to better understand your responsibilities, risks, and options under Colorado law, I can help. Contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., your Denver Small Business Attorney.
Contact Us Today
Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney
LICENSED IN COLORADO AND NORTH CAROLINA
Mailing Address:
501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com
by eclewis | Feb 28, 2022 | FAQ, Software Licensing
Do I Need a Lawyer for App Development ?
It’s easy to believe that all of the time and effort that goes into designing and creating an app is dedicated just to its development and construction. While this is generally true in the beginning stages of app development, you may have to deal with a headache later on if others try to steal your innovative ideas and creative work. It is upsetting to watch all of your hard work and money be wasted because your new software was not put through the proper legal process before it was launched on the app store. Hiring a lawyer for app development can help prevent unforeseen issues from derailing your success.
Things to Consider When Developing an App
Software Compliance
In the world of software and app development, regulatory compliance is viewed as one of the most critical concerns. Keeping things in balance, minimizing risks, and adhering to the laws now and in the future requires developers to be aware of the many industry-specific regulations regarding software development security. It also helps them stay in compliance with the most stringent rules, laws, legal texts, and legal landscapes and adjustments by having an awareness of this policy.
Privacy Issues
The privacy policy of an app is a statement that just about every app uses. Most countries have privacy regulations that require app developers to present app users with a privacy policy statement that they agree to in order to use the app. According to federal and state privacy rules, app developers may be held liable for any data that is shared or retained in their programs, so having a sound privacy policy is important.
Third-Party Services
Along with the privacy policy, another concern is the risk of third-party leaks of proprietary information throughout the development phase. NDAs (nondisclosure agreements) are essential to ensuring that other parties will retain confidential information. Legal aid may be required in the preparation of the NDAs required for approval of use of third parties and to make sure the third parties have contractual obligations not just to the developer, but the owner of the app as well.
Contracts to Protect You And Your Employees
Written contracts for app development are another part of app development that must not be overlooked. Proper legal contracts should be one of the first steps in establishing yourself as a professional developer who is serious about app development. Protecting yourself and the individuals you work with should be done with written contracts that include crucial documents like a Technology Assignment Agreement, Independent Contractor Agreement, Service or License Agreement, Privacy Policy, and an NDA. Decide who owns the code and what rights each owner has if held jointly. Having all the programmers transfer their code to a firm in exchange for a stake in the company, cash, or a future promise is another technique to consolidate title. But whatever you decide to do, put it in writing and have it reviewed by an experienced lawyer.
When Should I Hire A Lawyer for App Development?
Hiring a lawyer for app development should be done somewhere in between the initial idea for the app being discussed, especially with third parties, and before it becomes available to the public. It is not advised to release an app on any app store before seeking legal advice. Before hiring developers or other employees, it is advised to establish legally sound contracts that will protect the work that you have already put into the app and the ideas that belong to you.
For many years, Elizabeth Lewis worked in the Information Technology industry and has a deep understanding of the issues that face people when developing an app. If you’re in the process of developing an app, don’t hesitate to reach out for legal advice.
by eclewis | Feb 22, 2018 | Business Tax Law
Preparing for Business Taxes from Day One
Whether your business is big or small, you have 20 employees or none, you are required to pay the right taxes at the right time. Understanding your tax obligations are an important part of your business formation. How you are structured and whom you employ will impact your taxes, and any mistakes or omissions will not go unnoticed by the Internal Revenue Service (IRS) or the Colorado Department of Revenue (CDOR). A small business attorney can help you prevent liability issues, maximize your deductions, and represent you in the event of an audit or penalty. This post will cover five things every small business owner should know about business tax.
1. Your Business Structure Determines Your Tax Responsibility
“Small business” is not your only category. There are numerous structures your small business may fall under, and each has its own set of tax liabilities. Sole proprietorship, partnership, s corporation, and c corporation are just a few of these structures, and they all have their own advantages and limitations. The two most common state and local tax requirements for your small business are income taxes and employment taxes. Your business structure determines your state income tax responsibility.
Colorado has specific laws regarding employment taxes and insurance, including workers’ compensation, unemployment, and temporary disability. Visit the CDOR Taxation Division to learn more about state income and employment tax obligations. In addition to these, the IRS requires that you pay self-employment tax, estimated tax, and excise tax, also depending on your business structure. With each types of business tax comes its own set of rules, eligibility, and forms to file. Your small business attorney will keep you compliant with all state and federal tax laws.
2. You Can Choose Your Tax Year
You may assume a calendar year equals a tax year; however, you have the ability to choose a fiscal tax year instead if you need your annual accounting period to end in a month other than December. Or, if you are a new business, you can choose a short tax year since you were not in existence for the entire tax year. You also have the option of changing your tax period with permission from the IRS.
3. There are More Deductions Than You Think
Your goal is to maximize your profits, which can be challenging amid rent, utilities, employee salaries, materials, and many other operational costs. As a small business owner, you may be able to deduct many more expenses than you realize. Some common business deductions include supplies, furniture, and equipment. Some lesser known deductions include startup expenses (e.g. research, training, advertising), mileage, meals, software, subscriptions, insurance premiums, child labor, phone bill, retirement contributions, and more. Just be sure to have solid documentation and record keeping.
4. You Have to Make Estimated Payments
As a small business owner, you are responsible for making quarterly estimated tax payments throughout the year. Planning for the coming year by estimating what you owe and having the funds designated for payment will ensure you are ready for tax time every time. If you fail to submit the taxes you owe, you are subject to penalties. Even after conducting the necessary research and consulting a tax expert, new small business owners are prone to unintentional tax mistakes. A small business attorney will assist you if you find yourself in tax trouble.
5. You are Required to Pay Self-Employment Tax
As a small business owner, you are responsible for your portion of self-employment tax – social security and Medicare taxes – and the half that would otherwise be paid by an employer. You can lessen the blow at tax time by making advance deductions. Furthermore, half of your self-employment tax can be claimed as an income tax deduction.
Consulting the right business professionals will ensure that your tax return is accurate and your deductions are maximized. There are many resources for small businesses offered by the Colorado Department of Revenue, including its Revenue Online website. With an account, you have access to your tax records and a variety of services, including filing or amending a return, changing your address, filing a protest, and viewing account balances and payments.
If you need business tax advice, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com
Contact Us Today
Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney
LICENSED IN COLORADO AND NORTH CAROLINA
Mailing Address:
501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com
by eclewis | Sep 7, 2017 | Business Formation, Business Tax Law, Home Business
Future Expectations and Your Small Business Structure
You have had your brilliant idea for you new business – whether it’s software development or a boutique bakery – and now you need to know how to make it come to life. One of the most important things you will do for your new business will happen at the very beginning and concerns your future expectations and your small business structure.
Choosing your business structure has important implications for your future taxes, who owns your company, and who is responsible for any losses. Your business structure can mean the difference between paying employment taxes on everything you make and being able to take part of your business’s income as non-employment taxable dividends. Without the correct business structure and operations, you may fail to have limited liability and be personally liable for any damages caused by your business, you, or your workers. A Colorado attorney will help you choose the best business structure for your individual needs. Here is a brief summary of the most common small business types:
Sole Proprietorships
Sole Proprietorships are the most basic business type. If you are a freelancer, you probably are already a sole proprietor. There is little paperwork to be filed or forms to fill out, as it is the default status for running a business in the U.S. While simple, this business type comes with a lot of risk as there is no delineation between you as a person and you as a business. You are the only person responsible for the profits, and also for the loses. “This risk extends to any liabilities incurred because of employee actions” (SBA.gov).
Partnerships
If you are part of dynamic duo (or trio, or beyond), and you want that to continue into your business, a Partnership may appeal to you. The IRS sets the expectations of a Partnership as “Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.” There are different types of business structures housed under the umbrella of Partnership, each with different expectations for the length of the collaboration between parties, and the amount of liability and input for each party. The Small Business Administration has a helpful list of things you should discuss with your potential business partners before filling your paperwork. However, like a sole proprietor, partners typically have personal liability so careful consideration of this business structure should be had with an attorney before entering into it.
Limited Liability Company (LLC)
Limited Liability Companies (LLCs) is a business structure that does just that – limits your liability. It is a relatively new business structure – the first one was created in 1977. LLC laws are determined at the state level, so the state you form your LLC in matters. Due to the variation between states, LLCs can get a bit complicated, but Attorney Elizabeth Lewis is experienced in business formation and will help you navigate the formation of your LLC correctly. A few types of businesses generally cannot be LLCs, such as banks and insurance companies.
C-Corporations Taxes as C-Corporations
“From a legal standpoint, a corporation is a different person than the person or people who created it, and is therefore able to own property of its own, accrue its own profits, and be responsible for its own debts and civil liabilities.” (Upwork.com)
Most large businesses are Corporations, and a lot of legislation regarding Corporations has these large businesses in mind. A corporation taxed as a c-corporation may not be a good fit for your small business, as owning one tends to place a large burden on owners. Additionally, you may be taxed twice, since your corporation is a separate entity from yourself if you are a c-corp. It is a better a company type than the previously listed ones, however, if you plan on taking your company public.
Corporations and LLCs Taxed as S-Corporations
You can only have s-corporations if you have an LLC or corporation formed under state law. Many small businesses use them since they do not cause the double taxation problem. Not all companies can become S-Corporations however. From the IRS:
“To qualify for S corporation status, the corporation must meet the following requirements:
- Have only allowable shareholders
- May be individuals, certain trusts, and estates and
- May not have owners that are partnerships, corporations or non-resident alien shareholders
- Have no more than 100 shareholders
- Have only one class of stock
- Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations)”
The way you structure your business will have long lasting implications for your earnings, liability, and taxes. Improperly done filings can cost hundreds of thousands of dollars, and create stress year after year. It is best to consult an attorney before creating your business.
If you need help evaluating your future expectations or deciding on your small business structure, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com
Contact Us Today
Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney
LICENSED IN COLORADO AND NORTH CAROLINA
Mailing Address:
501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com
