Table of Contents:
DISCLAIMER The information contained in this website is for general information purposes only. The information is provided by SCORE Denver and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website. Through this website you are able to link to other websites which are not under the control of SCORE Denver. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them. Every effort is made to keep the website up and running smoothly. However, SCORE Denver takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
1. Research the structure, location, and potential for the business
2. Determine the legal structure for the business
3. Write a Business Plan
4. Obtain EIN from the IRS if business is to have employees
5. Determine a business name and register trade name/business with the Colorado Secretary of State
6. Choose site for business and research zoning with the city
7. Determine permit and license requirements: Colorado Dept of Regulatory Agencies, City, HOA
8. Obtain tax accounts and evaluate insurance needs: Colorado Dept of Revenue
9. Obtain financing
A business plan (BP) is required for any business seeking financing. However, it is recommended for all businesses. The BP for a start-up requiring financing should have detailed support for any assumptions. The BP for an acquisition of an existing business that is seeking financing does not need as much detail, but should include the prior 3 years actual financials and projections for the next 2 years.
The BP for a start-up should include:
1. Executive summary with a description of the business, goals, timeline, target markets, differentiation, strategy for success, management team skills and experience, 2-3 year key financial projections, summary of the total project cost and sources for any funding requirements. Take one point from each section of the business plan. This should be no longer than 2 pages. Make sure the information in the summary matches throughout the business plan. Keep to the facts and stay away from too many unsupported adjectives.
2. Details of the business with history of the business, legal structure, organization, ownership, location
3. A marketing plan including products and services offered, competitive advantages, method of distribution, analysis of competition, competitive strategy, pricing strategy, marketing budget. Use of a library to access databases with market averages for comparison is recommended, e.g. RMA, IRS averages by SIC
4. A 3-5 year financial plan with income statement, balance sheet, and cash flow statements. The first year should be monthly with the remaining data stated annually. Start-up costs and fixed assets should be listed, along with a break-even analysis (Break-even = Fixed Costs/(Unit Price of product/service – Unit Variable Cost)). Include a summary with total project cost, how much will be input by the borrower, funds expected from other sources like a bank, owner carried, etc. - breakdown the total costs by: capital requirements for the business, working capital, SBA guarantee fee (if applicable), closing costs, and processing fees.
5. Supporting documents such as resumes, legal documents, references, credit scores/reports of owners