Enterprise Challenge Contestants advance to ‘Sweet 16′

The Enterprise Challenge is right in the heat of the competition!  We have just completed the opening round and are into the ‘Sweet 16′.  There are now 16 entrepreneurs vying for the cash prizes in our business plan contest.  I have been getting to know the contestants and have been very impressed with their hard work and effort thus far.  There’s a very broad mix of entrepreneurs, experience levels and businesses, which is adding a lot to the competition.  Some of the entrepreneurs have started networking and learning from each other and taking advantage of the business counseling opportunities available.

The contestants have had their business plan summaries scored by the first round of judges. and now have a week to make any revisions to prepare for the Investment Round Trade Show.  The Investment Round will be set up as a trade show event, with approximately 30 judges that have $1,000 ‘Investment (play) Bucks’ to invest in a minimum of five companies; the top eight ‘money’ winners will move on to the next round of the competition.  This event is not open to the public.

Here’s a snapshot of the participants that have advanced to the next round. Some businesses are still in the planning stages, so they may not be ready to launch their official name yet, and others have websites and storefronts that you can visit for more information!

1.  K-5 Contracting, General Contractor.

2.  Bristol Media, BusyBee Magazine.  Niche Publishing.

3.  Creme’.  French inspired patisserie.

4.  Magic & Mind Games, Performance Magician.

5.  IQ Tax Center.  Tax services, IRS Audit solutions, bookkeeping services.

6. Lower Valley Therapeutic Massage & Spa.  Massage and other spa services in Grandview.

7. Don Mills. Algae International.

8. PartyNPlay.  Family friendly coffee shop and bakery.

9. Resource Recovery Group, Milt’s BBQ Gourmet Pellets. Flavored BBQ Pellets.

10. Serenity Falls Landscaping and water features.

11. Surya Yoga.  Yoga for All.

12. TBA Brewing Company.  Craft Brewing company in downtown Yakima.

13. VanKommer Industrial Design.  Engineering and design services.

14. Washington Vision Therapy Services.

15. Yakima Food Cooperative.

16. Yakima Press Company.  Vintage wine and cider press manufacturing.

Five Legal Bases to Cover for New Business Owners

October not only gets down to the wire in baseball…the Enterprise Challenge is turning into quite the competition!  Contestants turned in their five page business summaries last Friday afternoon and some of them were down to the wire.  The summaries are now being scored by a panel of judges and contestants will know this Friday if they advance in the contest.  There are 22 remaining and the field will narrow to 16 by this Friday.  An added benefit that the contestants have this year is the opportunity to attend four contestant-only workshops, which we have found to be extremely valuable and informational.

We were fortunate to have Dustin Yeager and Sean Griffee from Stokes Lawrence Velikanje Moore & Shore provide a fast-paced workshop on basic legal issues that entrepreneurs commonly encounter when starting a business.  Dustin and Sean covered a lot of essentials from business structure to corporate governance and real estate options to copyrights.  Many of the things they discussed emphasized doing your homework BEFORE you dive into something unprepared, which is one of the key reasons we encourage entrepreneurs to prepare a business plan.

It doesn’t take an attorney to tell you that if you do set your business up correctly in the first place or do things right the first time, it can save you a lot of time and money.  Here are some top takeaways from their presentation that new all business owners should consider:

1.  Legal Structure

Choosing a business structure is one of the first tasks a new business owner is faced with.  It is very important to look at not only how the various legal structures can affect your business, but the tax implications as well.  Keep in mind that just because you set up a Limited Liability Corporation (LLC) it does not mean you are immune from being liable or being sued. Washington State’s Department of Revenue has a very informative handbook on this to learn more.

2.  Licensing and Zoning

This seems like common sense, but before you decide to hang out your shingle, you should make sure that the location allows the type of business that you want to do.  For example, if you want to start a manufacturing company in downtown because you want the visibility, you might want to check to see if it is allowed before you sign a lease on the building.  Many cities and counties also regulate home occupation businesses and in some cities you have to go through a public hearing process to receive a city license to operate out of your home.  If you have questions, you should check with the City Clerk’soffice or Planning departments.

Licensing is another big piece of the business equation.  You can complete a Master Business License online but keep in mind you also need to check with whatever city you plan on doing business in AND check to make sure your chosen field does not require additional licensing.  In some cases, the State license qualifies as the city license, but in Yakima County, it doesn’t cover all the cities in the county.  One handy tool on the state Department of Licensing website is to do a ‘trade name search’ so before you launch your business, you can verify to see if someone else is using the business name you would like to operate under.  It’s also a good idea to Google your potential business name.

3.  Employment Basics

If you will be hiring employees, there are some basic guidelines to follow. You want to protect your business and part of that is to have clear employment policies and procedures in place that can help protect your business when terminating employment relationships.  Common mistakes many business owners make are to depart from company rules, failure to address harassment and/or discrimination and/or fail to document!

4.  Intellectual Property

The most common types of intellectual property are copyrights, trademarks, trade secrets and patents.  According to the speakers, “Secrecy is KEY to trade secret protection”, for example, if you have a secret family recipe, one way to protect that is to limit employee access to those who need to know.  You can also have employees sign confidentiality or non-disclosure agreements and be sure to tell people that the information is confidential.  If you have questions about patents or if your idea/invention is patent-worthy, it is a good idea to consult with a patent attorney.

5.   Taxes

Last but definitely not least is taxes.  Part of running a business is paying taxes.  Sales tax, B&O Tax, Use Taxes, Property Taxes, Income Taxes…Tax, tax, tax.  Yes, you need to make sure to pay your taxes.  Not knowing you owe taxes doesn’t help you with the IRS or state.  It is a good idea to consult a CPA or tax advisor that has experience with small businesses.

To summarize, covering your legal bases has a lot to do with risk management.  If you take steps to properly set up your business, be legally licensed and responsible when it comes to licensing, business practices,  paying your taxes,  and protecting your intellectual property, you can help minimize potential problems you may encounter.