Is It Time For Your Home Business To Move Out?

Is It Time For Your Home Business To Move Out?

Is It Time For Your Home Business To Move Out?

The rapid pace of Colorado’s economic environment is both alluring and daunting for small business owners. Consistently ranked at the top for everything from best city to live in (Denver) to technology and business, Colorado is not only attracting people, but it is also bringing in major retailers from around the globe. According to the U.S. Census Bureau, Colorado’s population grew by nearly 200,000 between 2014 and 2016, reaching more than 5.5 million. This boom has created a robust business climate and economic opportunities for entrepreneurs of all shapes and sizes. There are nearly 600,000 small business owners in Colorado despite rising real estate and cost of living rates. While you may have started as a home business because of these rising costs, there may come a time when you must expand beyond the home. This post will cover five reasons to move your business into a retail or office space. A small business attorney can help you make the right decisions for the future of your home business whether you stay where you are or move.

Moving your small business outside of the home is a major decision with a host of added expenses. Rent, agreements, utilities, cleaning and maintenance fees, movers, equipment, furniture, gas, taxes, and permits are just some of the overhead costs and regulations that will differ from your home operations. However, there are many benefits. Entrepreneur magazine discusses some of the arguments for giving up your commute to the spare bedroom.

1. A Growing Business Requires More Space

If your business is thriving, you have no doubt experienced some growing pains. Depending on the nature of your product or service, more customers can lead to storage and space issues. This is further complicated if you need additional staff. Unless you are willing and able to renovate your home to accommodate your expanding needs, you will likely have to rent outside space. In some cases, zoning laws prohibit you from having more than one employee in your home business.

2. Rented Space is Perceived as More Professional by Some

Clients may already come to your home office, which can be a bit of a juggling act when you are trying to portray a professional image. There may be a much broader audience you are not reaching – an audience who is deterred by or skeptical of the home setting. For those potential clients, a larger commercial space instills consumer confidence. The increased revenue from this larger client-base should eventually exceed the costs associated with renting outside space.

3. You May Not Want Non-Family Employees in Your Home

Having staff members in your home, especially if you have a large family or young children, may not be ideal. Unless they work virtually, it can even be difficult to hire the type of employee you are looking for. While a casual, flexible atmosphere is enticing to some, others have a bias associated with home business settings.

4. Your Home Has Too Many Distractions

It can be difficult to stay on task. The perks of making your own hours and dress code can also lead to an informal attitude and procrastination. It might take leaving the home to instill a more focused, productive work ethic, especially with piles of laundry or dishes taunting you in the other room. The demands or interruptions from family members will also lessen without your constant physical presence to which they have become accustomed. Moving into a retail or office space could restore your work-life balance.

5. Working Outside of the Home is Stimulating

Humans are social creatures, and working from home can be lonely. Without the stimulation of colleagues or peers, creativity and progress can be stunted. Even if you cannot afford a larger commercial space, co-working spaces provide lower cost options. If you find yourself easily distracted by isolation, overcompensating by doing housework, running errands, or visiting with neighbors, it is time to move out.

In a community of small business owners, networking and support abound for your growing home business. Everyone, including your competitors, want to see you succeed and stay in Colorado. Financing and grant opportunities are available through the U.S. Small Business Administration District Offices, and there are dozens of development centers for small businesses throughout the state. If the future of your business rests on expansion, but you are still not ready to relocate, there are ways to make it work. You are, after all, your own boss and landlord! If you need to hire employees, perhaps you can hire other free agents or ask that they work remotely. Storage facilities may offer a solution to your overrun piles and stacks. Business centers are temporary offices that provide space and amenities, like meeting space, office equipment, and receptionists. A small business attorney will help you decide whether it is best to stay or go and adapt to your changing needs.

If you need help deciding what to do with your home business, 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

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

4 Important Things To Do Before Opening a Retail Store

4 Important Things To Do Before Opening a Retail Store

Dreaming of opening your very own boutique, an artisans shop, or even a small franchise? There are a multitude of important considerations before you jump into the vibrant mix of Denver retailers. And, just when you think you have done your due diligence, you may encounter unforeseen obstacles. Whether it is an issue with a contract or agreement, choosing the right business entity, dealing with wholesalers, managing staff, or marketing your product, a small business attorney will help keep you on track. This post will cover four major parts to starting your own small retail business.

  • Product
  • Plan
  • Location
  • Finances

Product

You likely already know what you want to sell before you explore many other important factors. A working knowledge and passion for your intended product are great, but they do not guarantee success. Conducting research in order to gauge the demand for your product and keeping current on sales trends are essential to your potential for profit. The U.S. Census Bureau publishes retail trade reports every five years. These can help you measure the demand for your products.

Also, establishing relationships with product suppliers or wholesalers requires agreements and contracts, which a small business attorney will help you navigate.

Plan

Your product determined, it is time to create a comprehensive business plan. This will include a detailed description of your inventory, target customers, how to meet the needs of target customers, competition, and advantages you have over the competition. You will need to provide details about the organizational structure of your store and design a marketing strategy. Deciding on a business structure (i.e. sole proprietorship, partnership, corporation, limited liability company, etc.) will determine which tax forms you are required to file. An attorney provides tax advice and representation in the event of any audits, penalties, or other tax issues, so you should establish a relationship with a Colorado small business attorney before you file any forms with Colorado or the federal government.

Even with the best laid plans, one bad customer experience shared via social media can close your newly opened doors. A good small business attorney will work with you to develop a solid online marketing strategy as well.

Location

As with your product and plan, you will need to research potential locations for your business. Whether it is best suited for Denver’s creative Art District on Sante Fe, eclectic Union Station, or historic Larimer Square, you will want to select a property that meets your needs and budget. Your research may entail searching public records to see how a location was previously used, analyzing the foot traffic and demographics of the neighborhood, and finding a location that is visible to your customers and consistent with the image you want to project. Your attorney will assist in every aspect of your business formation from finding the ideal location, entering into lease agreements, hiring employees, drafting company documents, and filing the required state and federal paperwork.

Finances

Determining all of the expenses your business may incur when starting out will help you to spend more wisely and begin earning sooner. Plan for rent and operation expenses, such as security deposit, utilities, and staffing. Figure out if you will need to make property improvements and customizations, which are associated with a multitude of costs, including construction, furniture, fixtures, equipment, and office supplies. There are also expenses related to technology and communications (computers, phones, internet, point of sale (POS) terminals, card readers, scanners and printers), inventory, and marketing/advertising. Other required fees come with licenses, permits, taxes, and registration. Beyond borrowing money or obtaining a commercial loan, there are numerous options for small business loans. The Small Business Administration (SBA) offers several of these loan programs for entrepreneurs. Regardless of the type of financing, a small business attorney will review the written agreements and interpret the terms in order to avoid misunderstandings or defaults.

If you are starting a retail store and need an attorney, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small 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

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

What Denver Small Business Owners Can Learn from Coach Kubiak

What Denver Small Business Owners Can Learn from Coach Kubiak

The resignation of a leader, especially one who has been a team player and responsible for the team’s success, is always a blow. Denver small business owners may, on occasion, think about what would happen if they were no longer able to lead their team, but most of us prefer not to dwell on it. That is understandable, as long as you have a succession plan in place. This post will discuss planning for succession, and making sure your business can succeed without you, whether you step down by choice, or because you have to.

Small Business Succession

In football, there are many people other than the coach and players who are invested in seeing the team succeed. In fact, replacing the coach is a fairly common practice. Coach Kubiak, who is a former Bronco and helped lead the team to the Super Bowl, was not expected to leave at this stage of the game. Unlike the Denver Broncos, you may not have a general manager, other owners, or anyone who understands your business well enough to take over tomorrow if needed, so small business succession is a little more complicated (believe it or not) than changing coaches in the NFL. Plus, the legal form of your business may not support a smooth small business succession plan, even if you have a vague idea of who could or would step in if you couldn’t lead your team. What if you have to leave your team unexpectedly, and at a time when they need you? Is anyone prepared to take over in your absence? Is there a plan in place?

Succession and Business Form

You already know you had to choose the legal form your business would take when you started it. You may have decided on the legal form of your business based on tax strategy, or ease of formation, but you might not have considered succession and business form when choosing how to set up shop. Do you know what would happen if you or your estate needed to transfer the business to a new owner unexpectedly? The good news is, that regardless of how your business is structured (for the most part), there are ways to transfer it to another party if necessary. I cannot stress enough how far a little preparation now will go toward saving your loved ones a lot of grief and stress if you have a legal, written plan for the transfer of your business, no matter what the legal structure is. In coach Kubiak’s case, he was able to discuss the transition with his team, his General Manager John Elway, the other coaches, and the team’s owners, the Bowlen family. It’s also likely that his contract with the team described in detail what would happen if he resigned. While this is an ideal scenario in a less than ideal situation, this is not always how things go. An accident, or sudden, serious illness can leave you entirely unprepared to plan the transfer of your business. Why not take some time now to put a plan in place?

Planning for an Unplanned Succession

Most of us have a vague idea of what we would like to sell our business for someday, or which of our children we think would enjoy running it for us when we are ready to retire, but we see that plan getting put into place down the road. If you are reading this post, it is possible you have not done much preparation for an unplanned succession. As an attorney, I see this scenario more often than not. Here are a couple of things to ask yourself about an unplanned succession:

  • What if you couldn’t make your wishes known?
  • Are your wishes in writing somewhere? Are they current, and properly structured?
  • Are there people who may argue (specifically, in court) about what your wishes are, if you are unable to make them 100% clear?

The legal expenses that can accompany arguments about who was supposed to do what with your small business should you pass can destroy not only the business, but personal assets and family relationships as well. The best thing you can do is sit down with your Colorado small business attorney and ask what would happen tomorrow if you had to announce to your team that you were leaving, effective immediately. Or worse, what would happen if you passed due to an accident or sudden, unexpected illness. As an attorney, I don’t like asking people to think about these scenarios, but I like it even less when a I see a family trying to figure out how to hold a business together while they are grieving.

Denver small business owners can learn from Coach Kubiak; you may not want to stop leading your team, but there might come a time when you have to. None of us like to plan for the worst, but when we do, we make things much easier on ourselves, our families, and our successors. If you need help thinking about succession and planning for the smooth transfer of your Colorado small business, please contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small 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

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Small Business Fraud in Colorado

Small Business Fraud in Colorado

We hear stories and hope it never happens to us, but when we step back a moment and think about how often small business fraud occurs in Colorado, we quickly realize that we need to be vigilant. As a small business owner, there are a couple of types of fraud you are particularly vulnerable to. I will address a three common types of fraud here, all of which have happened recently in Colorado. I invite you to ask questions about any additional types you’d like me to comment on:

Employee Theft

This is perhaps the most difficult to experience, especially if the employee is a friend, or someone you’ve come to regard as family (or, in the most unfortunate cases, the employee is family). Unfortunately, being regarded as family is a designation deceivers work hard to achieve because of the access it affords them. Staying later, taking on extra duties, and helping out without asking for additional compensation may all be indicators of a bad apple, according to Entrepreneur. It might also just mean you have an employee who is trying to make a good impression, but it is important that you put checks and balances in place in case there is more going on. You can have the employee share responsibilities with someone else – it’s harder to hide deception when there are two people sharing a task. You can also insert an accounting procedure or accountability audit that can be verified by some other means than the employee’s word, for example. Think about how a bank or retailer counts out a cash drawer – there are always two people present and both must sign off on the amount. Come up with a similar means of vetting the work or tasks your most trusted, hardest working employee is engaged in, especially if you are relying exclusively on his or her word to confirm numbers or data being provided to you.

Trusted Advisor Theft

Many of our business advisors have certifications, credentials, and excellent references but those credentials don’t guarantee we will never experience trusted advisor theft. Case in point; a Colorado attorney was recently sentenced to six years in prison for for bilking the company he worked for out of nearly 5 million dollars. A Colorado finance firm owner pocketed fees that were paid to help source loans for his clients. He has been sentenced to prison as well. The prison sentences are reassuring, and hopefully act as a deterrent to would-be thieves, but they don’t erase the stress and financial turmoil these types of thefts cause a business owner. In the instances of employee theft and trusted advisor theft, trust is the door the thief enters through. Jonathan Marks, a partner at Crowe Horwath LLP, provides excellent guidance on observing tell-tale behavior, and reminds us that trust is one side of the coin when deception is the other.

“Fraud is not about obstruction. It is about deception,” Marks said. “In other words, trust is a professional hazard. If you trust someone, you’re at risk of being deceived, so you must verify, verify, verify.”

If your employee or trusted advisor has demonstrated a willingness to deceive, even if it appears the other guy “deserved” it, or if he or she is remarkably arrogant or braggadocios, you may need to do some digging to determine if these behaviors extend to a belief that he or she is “above” the law.

Small Business Credential Theft

By credential theft, I am talking about the credentials you use to access your business banking accounts or business funds, as well as data that could be useful to a thief attempting to pose as you. First and foremost, don’t engage or allow any employee to engage in the Employee Password Worst Practices as outlined in the 2015 Password Workplace Report. The report is worth a read and offers good tips such as requiring complex passwords, and requiring passwords to be changed often. And absolutely make sure that anyone making multiple attempts to access information with the incorrect password is locked out.

If you don’t currently route your company network through a secure collocation data center (or don’t even know what that is) or aren’t sure just what sort of shared access employees have to your computer network (meaning can employee A access the computer of employee B via your network?) you should consider hiring an expert to evaluate your situation. If you don’t know one, I can refer you. If you think you are doing alright with regard to network security, take a moment to read this article with tips on boosting your workplaces network security, just to be certain.

If you need legal help or want to talk over ways of securing your interests against small business fraud, feel free to contact me at the Law Office of E.C. Lewis, P.C., home of your Denver Small 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

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Denver Startup Week is for You

Denver Startup Week is for You

Nirvana for the Denver Small Business Owner

Ever wondered what goes on at the Denver Startup Week, and if you should attend? Powered by the local community, Denver Startup Week is “[t]he largest event of its kind in North America, [and] is the summit of entrepreneurial energy, innovation, and connection.” And it’s free!

Because the mission of Denver Startup Week is “to foster an environment where every member of a team, in every industry, can come to learn, grow, and prepare for their next challenge,” organizers are careful to include a broad variety of topics and business models. If you’ve already got your new business startup list (even if it’s just in your head), or you are an established small business owner and you want to learn more about tech, design, DIY-making, marketing, or leadership, there will be good information available for you and your team.

Education for Business Owners

At Denver Startup Week, you won’t just get advice on achieving balance between work and life: the event offers good education on a variety of topics and is designed around tracks. The tracks are based on the role you play in your business; founder, developer, designer, marketer, maker, etc. If you wear several hats, you can wear them all during Denver Startup Week.

Startup Week Tracks

FOUNDER
Whether you’re just dreaming about starting a business, on your first, or a seasoned entrepreneur, the founder track will provide you with the skills and knowledge you need to found a company. Initial product development, go-to-market strategies, finding funding, and building a team are just some of the topics that are covered. Start down the path of creating your startup!

DEVELOPER
Frontend, backend, full stack, big data, APIs, architecture, methodologies, junior, senior, we have it all. Learn new technologies, refine your skills, or just check out something completely different. Walk away a better engineer than you were before!

GROWTH
No matter how good it is, no product sells itself. A team that markets, sells, and supports the product well is a huge advantage for any startup. Every aspect of digital marketing, inbound and outbound sales, and customer experience is going to be covered at Denver Startup Week. Growing a startup depends on these skills, don’t miss your chance to improve them!

PRODUCT
Product management, development, and marketing, all different sides of the same coin that somehow bridges the gap between building the product and delivering it to the market. Product skills are in huge demand but there aren’t very many places where you can go to acquire them. Come improve your product game at Denver Startup Week!

DESIGNER
Seeing things others do not see is an art and our design track is packed with creative outlets to expand your thinking and ability to design. From fashion to architecture to breakout digital design and artwork – the design track is focused on the critical elements of design. Learn new skills, hear from those responsible for some of the best projects in Colorado, and let your creative juices flow. Enjoy connecting with fellow design leaders and leave the week with fresh inspiration!

MAKER
From craft skis to craft beer, robots to 3D printing – the experience of ‘making’ physical products is totally unique. Through the lens of physical goods across multiple industries, hear the stories behind breakout brands, learn about new technologies in manufacturing, and dig into the micro-production concepts needed to get started. Connect with the best craftsmen and makers in Colorado and see how they create their work – all in one week!

Still wondering if you’ll find something useful for your business? Take a look at some of what’s available from last year’s event. You will learn something new from Chris Frank’s presentation, The Art and Science of Finding Customers for Your Startup, within the first five minutes of his video, and that was last year! In fact, several excellent past presentations that are well worth your time can be found on the website.

The excitement, energy, and renewed vision that the event generates for local business owners and hopeful entrepreneurs who are testing the waters could easily produce an uptick in the GDP! If your business could use a little uptick, or a big boost, make sure you make the time to be at Denver Startup Week 2016. If you need startup legal help, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small 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

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets