Introducing “The Plunge,” A Series of 8 (or so) Posts on Starting a Human-Owned Business

Installment 1.

You can decide whether starting a business in a recession is brave, smart, stupid or nuts, but the fact is that folks are doing it, and it’s a good thing too. Two different surveys this spring confirmed that Americans put their trust in small businesses and entrepreneurs to lead this country forward; much more trust than they have in big business, government or even lawyers.

In the spirit of supporting the small business renaissance that will lead Colorado and the country, I am going beyond my earlier listing of the many free or low cost resources available for new companies. In a series of posts over the next few months, I will summarize the discussion I as a business lawyer would typically have with a client considering starting a human-owned business, otherwise known as “The Plunge.”

My rough outline of future installments for The Plunge, just in case you want to check back:

1. Fundamentals. Buying an existing business or a franchise or building one from ground up? Regardless, don’t skimp on a business plan and a budget.

2. Show Me the Money. Start-up capital is a huge concern for most new companies.

3. The Right Papers: Why use a business entity and how to pick the right kind. Trademarks and name protections. Business licenses.

4. Pre-nuptials. Assuming the business will have more than one owner, how will control, expenses and profits be shared? What happens when an owner leaves or the owners want to split-up?

5. Contracts 101. The contracts new companies need vary with the nature of the business, but virtually all business need to pay attention to contracts that impact their ability to get paid and not get sued.

6. People Power. Simultaneously the biggest headache and most important asset for most human-owned businesses. The best indicator of business success: owners who are redundant, or even better, irrelevant in the day-to-day workings of the company.

7. Insurance. A variety of different flavors, but pay careful attention to the ingredients.

8. The Road. What vision do the owners of the business have for themselves and the company?

My father was a navigator in the U.S. Air Force in the days before modern navigation tools. He guided planes across the Pacific by day using the sun and at night using the stars. If he missed Guam, a mere speck in the Pacific, the plane would run out of fuel and have to ditch in the ocean. He never missed. This series is intended  only to point potential human-owned business owners in the right direction, not to get you to Guam. If you are serious about taking the plunge yourself make sure to work with a good business lawyer and accountant. They should be your guiding stars.