by eclewis | Apr 8, 2015 | Business News
Colorado was recently ranked 3rd among US state economies by Business Insider. You can see the full report here. This is not too surprising since Business Insider also ranked CO as being the fastest growing state economy last year. A large part of the methodology of the new ranking, Business Insider was looking at factors such as GDP per capita, unemployment rate, weekly wages, and state government budget situation.
Naturally, all of these individual factors are significantly affected by the state of the energy market, especially for states like Colorado with significant oil and gas exploration and development. It’s interesting to note that North Dakota came in at #1 on this list and Texas at #2, two states that also have substantial energy-based economies. With the recent drop in oil prices and reduction in related jobs, it will be interesting to see how this impacts Colorado’s economy. We already discussed in a previous post about how the lower gas prices have increased hiring and business overall in other sectors of the economy.
So far, it has been reported that Colorado has not been significantly impacted by the drop in oil prices yet, at least as far as the recent data is able to show. However, this will not likely remain the case. It was reported that half of Colorado’s drilling rigs have not been in operation for months. Growth and other economic projections for the state’s future are not as bright as they once were. This is expected to increase unemployment, reduce GDP, and also reduce state tax revenues too.
Colorado does have a diversified economy, certainly much more so than say, North Dakota, and the state is expected to weather the storm in the energy market better than other areas, with continued growth and low unemployment rates continuing, just perhaps not quite as strong, into the future. After all, business confidence here in Colorado is still continuing to rise. Colorado is and will continue to be a top state for businesses both big and small.
If you have questions about legal matters for your business, don’t hesitate to reach out to the Law Office of E.C. Lewis, PC, home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.
by eclewis | Mar 25, 2015 | Business News
Appreciating your Customers and Clients
It cannot be put any more simply than to say that without your customers and/or clients, your business could not survive, so lets talk about ways that you can show your appreciation to them and increase their loyalty to keep them coming back again and again.
You can always consider sending out a handwritten thank you to your top clients to let them know how much you appreciate their business and that you are here for them if they need anything else. You may also think about hosting a client appreciation day of some kind where you offer to take them out to lunch or send out small gifts to them. Sometimes simply reaching out to them for a less formal check-up may be appreciated as a way of showing that you care about how they are doing personally and professionally.
If your business is “customer” rather than “client” based, consider issuing some coupons available for customers to get a discount when they come back next time. Not only are these incentives a relatively small effort on your part but also they can go a long way in forging long-lasting relationships. Such incentive programs do not have to be a drain on your business either; in fact, they can be a large source of long-term growth through customer loyalty and repeat business.
Speaking of customer loyalty, if you are ready to make a bigger step than offering one-time discounts, it may be time to consider developing a customer loyalty program. This could include offering discounts or free products after satisfying a particular number of purchases in a period of time or after meeting a certain dollar amount of purchases. These kinds of programs can be implemented with a variety of smartphone applications available for small businesses, so you do not have to develop one by yourself. This can be a great way to not only increase the quantity of your sales but it can also increase the quality of the overall experience for your customers. This will likely not only increase their customer loyalty, but it will also increase the likelihood that they will bring in their friends and family, write positive reviews online about your business, and tell others about your business.
Whatever you decide to do for your clients or customers, think about it from their perspective. If you were a client or customer, what would you appreciate and what would make you want to come back to that business or refer it to your friends and family? These ideas do not have to be expensive or complicated, but instead, they simply demonstrate how sincerely you value your patrons and want to keep them coming back.
If you need legal assistance for your small business, or if you are ready to start your own, do not hesitate to reach out to the Law Office of E.C. Lewis, PC, home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.
by eclewis | Mar 18, 2015 | Business News
Now that Spring is just around the corner, lets talk about one way of making an exciting new change to your business as part of some spring cleaning.
A while back there was some interesting speculation that turned out to become a reality, Google has launched a new program to comparison shop for auto insurance. The company set up an entity named Google Compare Auto Insurance Services Inc. and got licensed to do business in a majority of states (although they still appear to be working on their support for CO). Additionally, they built up relationships with several big-named insurance companies like MetLife, and Mercury Insurance. Google also appears to be working with CoverHound, an existing insurance comparison service. Google has already been offering insurance comparison shopping in the United Kingdom since 2012.
While Google is an enormous company, it is important to note how they have not lost their entrepreneurial spirit. Google has not been afraid to try new things and to diversify their company from everything from its search engine and web ads to developing cell phones and now getting into the insurance industry.
Understandably, smaller businesses may not have the resources or capital available to make big leaps or changes into other market sectors, but there are still important business principles and lessons to be learned. Fundamentally, that is that just like a good investment portfolio, diversifying may be key to your business’ long-term stable growth in the modern, dynamic economy. Even if you are not able to make big jumps into other business areas, you may be able to diversify in simpler or smaller ways that are less capital intensive and more closely related to what you already do.
Think about what your business does at its most fundamental level, then try to branch out into thinking about the areas that your does not do. Basically, what are your business’ current boundaries? Are there things that your business has to contract out to have done for it or that you have to refer your customers elsewhere to have accomplished? Remember that these areas can exist both vertically (such as part of your supply chain) or horizontally (such as related services). Try to evaluate practically what costs and concerns would be involved in branching out to some of these other areas. Which areas would be the easiest for you to try out?
After all, it was probably your entrepreneurial spirit that got you into starting your small business in the first place, and you should consider keeping that excitement alive by trying new things with your business. Nevertheless, it is imperative that you make these diversifying decisions carefully, after much thinking and discussion with your business partners, consultants, as well as legal counsel and other advisors, so you can get their opinions on the risks and other considerations involved.
If you are considering branching out to new areas with your business, do not hesitate to reach out for legal help and guidance from the Law Office of E.C. Lewis, PC, home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.
by eclewis | Mar 11, 2015 | Business News
Occupational Privilege Taxes
Occupational Privilege Taxes in Colorado are essentially a “head tax” that is levied on most workers within jurisdictions that have the tax. Simply put, this means that every employee that falls under the requirements in the jurisdiction has to pay it, and there is typically an employer match of this tax. The tax is levied on a city and/or county basis of where you work, even if the business is located outside of the jurisdiction. This can get complicated if a business is located in Glendale but the employee works in a satellite office or from their home located in Denver. In a situation like this, the employee should not have to pay the Glendale tax, but likely would have to pay the Denver tax.
Here is a breakdown of where the tax is levied, the amount of the tax (per month) for employees and employers, and the minimum amount you must earn in a month for the tax to be levied on you.
| City |
Tax for Employees |
Tax for Employers |
Income Threshold |
| Denver |
$5.75 |
$4.00 |
$500 |
| Glendale |
$5.00 |
$5.00 |
$750 |
| Aurora |
$2.00 |
$3.00 |
$250 |
Keep in mind that this is just the basic applicability of the tax and there can be more unique circumstances that can have an impact on your business and employees’ tax liability.
For example, if you have one job but work in more than one jurisdiction that has an Occupational Privilege Tax, generally, you would only pay the tax for the jurisdiction that you spend the majority of your time working in. Employees with multiple jobs in the same jurisdiction usually only have to pay the tax once and can fill out a form to be sure it is not withheld by their second job. Those who are self-employed may only have to pay the employer side of the tax, but it depends on the situation and jurisdiction.
In many cases, businesses without any employees are still required to pay the employer portion of the tax. Owners of a business may also be required for at least the employer portion of the tax, even if they are not paid. As you can see, there are a variety of circumstances that can complicate how the Occupational privilege applies to your business, so be sure that you seek out good advice about it.
If you have questions about legal matters for your business, don’t hesitate to reach out to the Law Office of E.C. Lewis, PC, home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.
by eclewis | Mar 4, 2015 | Business News
Trelora, a real estate brokerage startup located here in Denver that charges a flat fee for its services, appears to have breached the terms of its multiple listing service (MLS) subscription. What Trelora started doing was including, as part of its searchable home listings, the amount that home sellers are willing to pay a buyer’s agent when the property is sold.
In response, REcolorado, a MLS firm, is threatening to fine them, and suspend or terminate Trelora’s access to MLS data. Since then, Trelora had made some changes to meet some of REcolorado’s demands but was nevertheless continuing to post the commission rates to buyers on their website. Trelora lawyered up and was seeking to negotiate with REcolorado and determine where to go from there.
Since then, Trelora stopped posting broker commission information after they received a cease and desist letter from REcolorado. In response, Joshua Hunt, the CEO of Trelora posted an open letter on its website regarding the controversy. In it, he defended Trelora’s actions as fighting for transparency and consumer empowerment. He said, “Unfortunately, there are many in our industry who want to protect agents’ exclusive access to this important [financial] information.”
This live controversy taking place right here in Denver is a great example for how any time you sign-up for a data service like MLS, there is going to be a contract involved regulating what you can and cannot do with that data. Most of the time, there will be limitations preventing you from disclosing most, if not all, of such information to the general public. After all, there is probably a reason why nobody else has done what Trelora is doing. If you fail to comply with the terms of that contract by disclosing protected information, then you have clearly breached that contract and will be liable for damages. It is not surprising that Trelora finally agreed to take down this protected information, as they likely thought the legal battle they were facing would either be unsuccessful or cost-prohibitive to pursue any further.
If you are thinking about entering into a contract and you need help reviewing it and what you will be able to do going forward, don’t hesitate to reach out to the Law Office of E.C. Lewis, PC, home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.
