I’m not here to tell you that striking out to pursue your own venture is not without risk, or that you won’t face self-doubt. In 2009 I left my comfortable corporate attorney job to start my own Denver law firm. I had a vision of using my skills in business law to not only help Colorado’s small and medium sized businesses develop and grow, but to partner up and be by their side for the long-term. I followed this vision through to start Hasan, LLC in October of 2009. But there was never a guarantee that I would succeed and I had to work hard to develop my business. However, there are some basic steps to follow when starting your business that will start you on the right path, instead of steering you towards the cliff.
The Business Basics
- Write a business plan.
- Think about the type of funding you will need, and where you will get it.
- Understand your options of incorporation/organization.
Of course there are a myriad of ways to go about tackling each of these steps. Courses, advice and templates for creating a business plan abound. Funding options range from bootstrapping and bank loans, to getting equity from a venture capitalist. The type and amount of funding you will need depends on many things, including how large you envision growing the business and the terms you can live with. Understanding the most appropriate type of business entity to form will vary depending on the intent and goals for your business. Should you be a Colorado LLC, a Colorado C-Corp or a Colorado S-Corp? Do you want to raise capital? Will you issue incentive compensation to your employees? What Colorado statutes and legal regulations do you need to be aware of for your specific industry?
These are just a few questions to ponder. Laying this business groundwork properly will go a long way in alleviating some of those nagging startup fears.
Copyright © 2011 Hasan, LLC. All rights reserved.
“Danger…Danger” under CC license by Koinos Zoi Photography