Our office remains open to serve your important legal needs during these turbulent and challenging times. We are happy to schedule client consultations and client meetings by telephone or video-conference at your request.
Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

5 funding tools for starting a business in Colorado

There are a number of challenges and obstacles for people who want to start a new business in Denver. Having a great product or new idea is not necessarily enough to launch a successful company. In general, business owners must consider and plan for business goals, operation structures and how a company will be funded. When it comes to most business transactions that take place at the beginning of new business, there can be complicated legal agreements, tax documents and employment guidelines that must executed properly.

Before much of this can happen, however, a business owner must decide how he or she will fund a new venture. According to a recent Forbes article, company owners may want to use one or more of the top five funding tools available to startups.

Funding a company may be as simple as finding an investor confident in a business owner’s capabilities or product. These types of personal connections often appear in the form of parents, family members or friends.

Crowdfunding is a process that has been gaining popularity with business owners in recent years. By collecting small amounts of money from a large number of people, word of the business will spread and each investor will be able to contribute a smaller, more manageable amount to a company.

For those entrepreneurs who have worked to establish a respectable level of success already, inviting third parties to share ownership of a company in exchange for money, also referred to as angel investing, can be an effective way of increasing funding.

Colorado business owners may also want to consider contacting small business associations who are dedicated to helping small businesses thrive. They can provide people with advice, funding and general guidance on various business matters.

If these tools are not available or are insufficient in funding a company, entrepreneurs may decide to invest their own money into their business. No one wants to see a company succeed more than the person who is starting it.

No matter how a person decides to pursue funding for his or her business, it is important that the process is done legally and accurately. As more people get involved in a company, it is crucial that business owners have the proper documentation and operating plans in place to enable it to grow and thrive into a successful entity.

Source: Forbes, “Top Tools To Fund Your Startup,” Tanya Prive, Dec. 11, 2012

  • Our firm works with business owners to provide them with strong representation in business and legal matters. For more information, please visit our page on Colorado business planning.
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