What Denver Small Business Owners Can Learn from Coach Kubiak

by | Feb 14, 2017 | Business News

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

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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

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Small Business Fraud in Colorado

by | Oct 26, 2016 | Business News, Misc. Legal Tidbits

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:

Denver Startup Week is for You

by | Aug 18, 2016 | Business News

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

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Colorado’s Cottage Food Industry Grows Stronger

by | Jul 12, 2016 | Business News

Colorado’s Cottage Food Industry Grows Stronger

For a small business owner looking to test the waters of entrepreneurship in the food industry, the cottage foods industry option might be just the thing. You might ask, “What are cottage foods?“, and for that, we can consult with the Act itself, but it’s largely limited to a variety of foods that are prepared in such as way as to not require refrigeration and must be sold directly to consumers, versus restaurants or grocery stores. Additionally, the sales of such items must take place at the producer’s location, or at a farmer’s market or other similar community-supported event/venue that deals directly with consumers. Think back to the time where you bought a jar of specialty jam or pickles at your local farmer’s market, and you were most likely supporting a cottage food producer.

When the Senate Bill 12-048 (or the Colorado Cottage Foods Act) was enacted, a cap on the amount of sales permitted under the act made it difficult for a producer to scale up as they needed, should their micro-business experience rapid growth. An additional issue was the short list of approved items, which seemed slightly thin on the variety of products available for making. In 2015, things changed under a few amendments, designed to lift that sales cap and also provide for a greater range of allowed products.

Amendments House Bills 15-085 and 15-1102 improved the original Act to increase items permitted and when a few steps further into defining the products by use of tiers. Those tiers are broken down into the following configurations:

–Tier One Foods: Spices, teas, dehydrated produce, nuts, seeds, honey, jams, jellies, preserves, fruit butter, flour, and baked goods, which include candies, tortillas, and fruit emapanadas.

–Tier Two Foods: Pickled vegetables which have an equilibrium PH value of 4.6 or lower, and other non-hazardous foods. For example, sales are permitted of eggs to a level of 250 per month, so backyard chicken owners might be able to sell a bit of their overflow.

These provisions expand the diversity of available cottage food items for consumers, as well as extend the opportunities for people producing them. Along with these provisions, House Bill 15-1102 addresses the labeling of such products, so consumers are aware of the production classification and its production source, so consumers can easily identify they are purchasing items produced in a home kitchen, versus an industrial site.

While it might seem like the cottage food industry is “small potatoes”, one need only look at a company like Boulder County-based Celestial Seasonings to get the inspiration they need to take their product from their kitchen to a large-scale facility. Starting back in 1969, founder Mo Siegel was hand-picking wild herbs in our local mountains and creating their very first tea, and today, their product line has expanded dramatically to more than 105 varieties of tea, with ingredients being sourced from over 35 countries.

If starting a cottage food industry is something you are considering, keep in mind there are some trainings the state offers in order to make sure you are adhering to strict purity and production standards, as well as making sure you’re compliant as possible with state regulations surrounding your product(s).

If you need legal help, don’t hesitate to contact me 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

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A Look Back at Small Business Week: Great Advice from Entrepreneurs

by | Jun 20, 2016 | Business News

A Look Back at Small Business Week: Great Advice from Entrepreneurs

Often, the start of a new year can raise a lot of different feelings in us. What do I want to change? What are my goals? Will 2016 be the year I actually use my gym membership?

You may have turned the corner into the new year determined to cease working for “the man” and ready to strike out on your own. If so, congratulations! While deciding to start your own business is an exciting idea, it’s also important to remember that it’s a significant undertaking, no matter the scale.

Several steps are involved in starting, getting up to speed, and then maintaining your new company. The most useful thing you can do at the outset is make sure you’re as ready as possible.

If the new year has indeed gotten you up close and personal with a switch over to the entrepreneur track, consider these things first.

Jumping in with both feet to a new business takes commitment. Do a gut check: are you passionate about your idea? Do you believe in it so deeply that it will carry you through the long hours and lean times in the start-up phase? Your business concept doesn’t matter as much as your belief in it. That becomes your lifeblood once the initial excitement has passed.

Ask yourself how well you tolerate risk. Some people thrive on it, but for others it’s more difficult. Your business isn’t guaranteed to succeed, no matter how much you think it will. Factors out of your control such as location, political volatility, or cultural change can make or break a company overnight. Will you be able to deal with the ups and downs that usually come with a business start-up — or even its potential failure?

Starting a business means that you will be chief cook and bottle washer for a while — everything becomes your responsibility initially. You have to get your idea out there in front of people and wear several different hats in the beginning stages: sales, HR, administrative, marketing, financial. Is taking on major responsibility a good fit for you? And are you nimble enough to handle it?

Included under the umbrella of responsibility is the ability to make decisions, many of which can be challenging in a small business atmosphere. Do you wear decision-making well? Is this an area in which your strengths consistently show up?

Lastly, the elusive work-life balance. Any entrepreneur who has started her own business can tell you that you go full speed at the outset, and sometimes it doesn’t slow down as quickly as you would like. You may lose time with family, friends, or hobbies that feed you in other ways. Is this the right time in your life to devote all your energies to this undertaking, and do you have the support of others to do so?

Starting your own business is an exciting ride, and one that should be undertaken with realistic consideration. If now is your time, dive in! And let me know how I can support you.

If you need legal help, don’t hesitate to contact me 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: