Owning your own CO LLC Business and being your own boss is part of the fabric of the American dream. Even in tough economic times, and maybe even especially in tough economic times, the entrepreneurial call can be a compelling force. But before you make that leap, make sure first take the following 5 steps:
1. Don't quit your day job- many entrepreneurs leave the income of their current job too soon due to their enthusiasm for their new idea. Any new business venture takes planning, planning, hard work, money, and more planning. If you have a steady job now, consider sticking it out until you have saved enough money to finance your entrepreneurial pursuits. This will also buy you more time to create a solid business plan and chart your course for the business startup phase. Also, working a day job while moonlighting as an entrepreneur will help you establish a solid foundation and will increase your chances of success in an increasingly competitive marketplace.
2. Speaking of money- most small business owners underestimate the cash reserves they will need to keep their business afloat during the first year or two. If you have the luxury of a well paying day job, make it a goal to save up at least 1 year of family living expenses and your first year of business expenses. To quote financial guru Dave Ramsey, "cash is king and debt is dumb". If you have the ability to self finance your new business, save some cash and don't get too overanxious to open the doors just yet. Debt service can kill a small business in the early going.
3. Figure up your start up costs- and then add in a buffer. When you are starting a new business, stuff always seems to pop up or cost more than you thought it would.
4. Don't neglect your health- insurance that is. If you are leaving a company that has an HR department and group coverage you may suffer from sticker shock when you start looking for private health insurance for your family. Do your homework and compare several different plans that fit your budget and risk tolerance. If you have small kids don't be penny wise and a pound foolish. Make sure you have a health insurance plan that more than adequately provides for your family's needs.
good professionals licensed in your state- a good attorney and accountant
during the startup phase can help you avoid critical mistakes. A business
attorney will help you determine what legal business structure is right for you
and an accountant helps you establish a solid foundation for bookkeeping and tax
planning. Considering that laws often vary from state to state, it is essential
to seek out professionals familiar with Colorado's business, tax and CO LLC Laws.
Visit www.RockyMountainStartup.com for more info.