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Working at home offers new challenges
By Chris Michlewicz
As Colorado’s unemployment rate continues to climb, so, too, does the number of residents chasing their entrepreneurial dreams.
Those who suddenly find themselves jobless always face a series of tough decisions and life-changing dilemmas, and the alarming prospect of failure in the next endeavor weighs heavily on their minds. Most simply file for unemployment and scramble to find a position similar to the one they just lost. But a growing number of unemployed residents are throwing caution — and sometimes their life savings — to the wind to reach their goals.
These enterprising individuals typically find themselves asking the most difficult question of all: Where do I start? Many of them are surprised to find there is a mountain of resources — most of them free — to help them fulfill a dream of working for themselves or introducing a breakthrough concept to the masses.
Government help
A town’s character is often defined by its small business community, and with home-based businesses now representing the lion’s share of start-up companies, local and state governments are recognizing the need to provide critical resources to those who strike out on their own.
Douglas County stands at the cutting edge of assisting entrepreneurs by offering practical direction to sprouting and seasoned small business owners alike. The new kids in town can take advantage of the county’s Web site, www.douglas.co.us, which lists helpful tips and provides links to state and federal Web sites designed to make the transition as a new business owner a smooth one.
Meme Martin, economic development manager for Douglas County, is an omniscient guide for start-ups. She points entrepreneurs in the right direction, limiting the guesswork often associated with creating a burgeoning company.
The Small Business Development Center, based in the South Metro Chamber of Commerce office at University Boulevard and Arapahoe Road, helps residents of Douglas and Arapahoe counties develop a business plan and obtain proper licensing. The government-funded organization also schedules educational seminars and offers free one-on-one counseling.
Douglas County Libraries employs trained reference librarians who can help research invaluable market issues, trends and trade names.
There are several local resources, such as economic development councils, that act as a one-stop shop of available rental or lease spaces, enabling people to find the right size space or location for their business, Martin said. Chambers of commerce can provide the names of area companies that can assist with services not offered by the small business.
Douglas County maintains an online demographics page that equips entrepreneurs with detailed figures pertaining to population, housing and types of businesses in a targeted area. The county also launched an “economic gardening” program in late 2007 that established business owners can use to devise marketing strategies, monitor building permits and gain insight into what competitors are doing, among other benefits.
Start-ups often find the Colorado Secretary of State’s Web site, www.sos.state.co.us, useful in the beginning stages; it has regulatory information about licensing requirements and how to incorporate a business. The federal Small Business Administration Web site, www.sba.gov, also contains a “how to” lesson plan for starting up.
One of the greatest challenges for entrepreneurs is finding enough funding to get the business off the ground, Martin said.
These days, it is more difficult to secure a small business loan. Unless the idea is one that is sure to generate public interest and a steady stream of revenue, unproven businesses are usually viewed as too risky. Many entrepreneurs start with their own money or funds borrowed from friends and family members. Some even take out a second mortgage on their home.
Martin said entrepreneurs with a clear and promising vision for success can sometimes find angel investors or become linked with a venture capital group. However, many of those owners lose some control over the company.
Regardless of funding, it’s imperative that entrepreneurs come up with a long-range plan and be able to define the product or service in a “30-second elevator speech,” Martin said.
Douglas County is home to one of the largest populations of home-based businesses in the state, with a whopping 40 percent to 50 percent of all businesses in the county being based in a residence. The highly educated, wealthy residents are taking advantage of the wide range of resources available in their own backyard.
“These are not Tupperware salesmen. They are international consultants, software developers,” Martin said. “They have been pretty successful without an office.”
Professional guidance
The state is anticipating a rise in start-up businesses as the newly unemployed forge ahead with their ideas, said Thomas J. Frey, founder of the DaVinci Institute, a Colorado-based think tank in Louisville that promotes the work of entrepreneurs and inventors.
A rise in entrepreneurship is typical in a down economy, he said, and about 7 percent of employees who are laid off will try building a business from the ground up. The DaVinci Institute constantly tries to find new ways to help those individuals navigate the many obstacles that stand in their way.
“I think it’s totally worthwhile to stretch your wings and try that,” Frey said. “For the people who succeed, there’s nothing better — the highs are higher and the lows are lower but you just feel so alive.”
It’s wise to contact a small business attorney to help clear the legal hurdles that inevitably stand in the way. Sean T. Amman, a small business attorney with Rosnik, Amann and Bruntz, LLC in Parker, ushers clients to the appropriate avenues for forming a business entity.
“We discuss registering as an LLC versus a professional corporation,” he said.
For example, requirements vary for certain professions, such as beauticians, attorneys and insurance agents. Limited liability corporations typically provide greater protections for individuals in case the business is sued. Attorneys can outline steps for applying for an Employer Identification Number with the Internal Revenue Service.
Amman and other small business lawyers can also provide advice on legal protections and speak in layman’s terms about tax issues. Some online services offer business templates, but issues can arise when a company does not have solid, legally binding contracts among owners or investors.
“From a legal standpoint, they need to know how they want the company to operate, what’s expected of all partners and have full disclosure so there are no surprises,” he said.
Amman recommends that entrepreneurs contact a business attorney and certified public accountant only after developing a good business plan.
New business resources
Douglas County Libraries
Small Business Administration (www.sba.gov)
Local business attorneys
Small Business Development Center
Online business plan templates
Douglas County Web site (www.douglas.co.us)
Colorado Secretary of State (www.sos.state.co.us)
Those who suddenly find themselves jobless always face a series of tough decisions and life-changing dilemmas, and the alarming prospect of failure in the next endeavor weighs heavily on their minds. Most simply file for unemployment and scramble to find a position similar to the one they just lost. But a growing number of unemployed residents are throwing caution — and sometimes their life savings — to the wind to reach their goals.
These enterprising individuals typically find themselves asking the most difficult question of all: Where do I start? Many of them are surprised to find there is a mountain of resources — most of them free — to help them fulfill a dream of working for themselves or introducing a breakthrough concept to the masses.
Government help
A town’s character is often defined by its small business community, and with home-based businesses now representing the lion’s share of start-up companies, local and state governments are recognizing the need to provide critical resources to those who strike out on their own.
Douglas County stands at the cutting edge of assisting entrepreneurs by offering practical direction to sprouting and seasoned small business owners alike. The new kids in town can take advantage of the county’s Web site, www.douglas.co.us, which lists helpful tips and provides links to state and federal Web sites designed to make the transition as a new business owner a smooth one.
Meme Martin, economic development manager for Douglas County, is an omniscient guide for start-ups. She points entrepreneurs in the right direction, limiting the guesswork often associated with creating a burgeoning company.
The Small Business Development Center, based in the South Metro Chamber of Commerce office at University Boulevard and Arapahoe Road, helps residents of Douglas and Arapahoe counties develop a business plan and obtain proper licensing. The government-funded organization also schedules educational seminars and offers free one-on-one counseling.
Douglas County Libraries employs trained reference librarians who can help research invaluable market issues, trends and trade names.
There are several local resources, such as economic development councils, that act as a one-stop shop of available rental or lease spaces, enabling people to find the right size space or location for their business, Martin said. Chambers of commerce can provide the names of area companies that can assist with services not offered by the small business.
Douglas County maintains an online demographics page that equips entrepreneurs with detailed figures pertaining to population, housing and types of businesses in a targeted area. The county also launched an “economic gardening” program in late 2007 that established business owners can use to devise marketing strategies, monitor building permits and gain insight into what competitors are doing, among other benefits.
Start-ups often find the Colorado Secretary of State’s Web site, www.sos.state.co.us, useful in the beginning stages; it has regulatory information about licensing requirements and how to incorporate a business. The federal Small Business Administration Web site, www.sba.gov, also contains a “how to” lesson plan for starting up.
One of the greatest challenges for entrepreneurs is finding enough funding to get the business off the ground, Martin said.
These days, it is more difficult to secure a small business loan. Unless the idea is one that is sure to generate public interest and a steady stream of revenue, unproven businesses are usually viewed as too risky. Many entrepreneurs start with their own money or funds borrowed from friends and family members. Some even take out a second mortgage on their home.
Martin said entrepreneurs with a clear and promising vision for success can sometimes find angel investors or become linked with a venture capital group. However, many of those owners lose some control over the company.
Regardless of funding, it’s imperative that entrepreneurs come up with a long-range plan and be able to define the product or service in a “30-second elevator speech,” Martin said.
Douglas County is home to one of the largest populations of home-based businesses in the state, with a whopping 40 percent to 50 percent of all businesses in the county being based in a residence. The highly educated, wealthy residents are taking advantage of the wide range of resources available in their own backyard.
“These are not Tupperware salesmen. They are international consultants, software developers,” Martin said. “They have been pretty successful without an office.”
Professional guidance
The state is anticipating a rise in start-up businesses as the newly unemployed forge ahead with their ideas, said Thomas J. Frey, founder of the DaVinci Institute, a Colorado-based think tank in Louisville that promotes the work of entrepreneurs and inventors.
A rise in entrepreneurship is typical in a down economy, he said, and about 7 percent of employees who are laid off will try building a business from the ground up. The DaVinci Institute constantly tries to find new ways to help those individuals navigate the many obstacles that stand in their way.
“I think it’s totally worthwhile to stretch your wings and try that,” Frey said. “For the people who succeed, there’s nothing better — the highs are higher and the lows are lower but you just feel so alive.”
It’s wise to contact a small business attorney to help clear the legal hurdles that inevitably stand in the way. Sean T. Amman, a small business attorney with Rosnik, Amann and Bruntz, LLC in Parker, ushers clients to the appropriate avenues for forming a business entity.
“We discuss registering as an LLC versus a professional corporation,” he said.
For example, requirements vary for certain professions, such as beauticians, attorneys and insurance agents. Limited liability corporations typically provide greater protections for individuals in case the business is sued. Attorneys can outline steps for applying for an Employer Identification Number with the Internal Revenue Service.
Amman and other small business lawyers can also provide advice on legal protections and speak in layman’s terms about tax issues. Some online services offer business templates, but issues can arise when a company does not have solid, legally binding contracts among owners or investors.
“From a legal standpoint, they need to know how they want the company to operate, what’s expected of all partners and have full disclosure so there are no surprises,” he said.
Amman recommends that entrepreneurs contact a business attorney and certified public accountant only after developing a good business plan.
New business resources
Douglas County Libraries
Small Business Administration (www.sba.gov)
Local business attorneys
Small Business Development Center
Online business plan templates
Douglas County Web site (www.douglas.co.us)
Colorado Secretary of State (www.sos.state.co.us)
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Xocolate wrote on May 7, 2009 6:33 PM: