According to a list compiled by Forbes, Metro Denver was named the fifth best place for business and careers. USA Today puts the Boulder/Denver area in their top 10 places to start a technology business, and CNBC rates the state of Colorado as the eighth best state in which to start any business. With such a positive showing on these lists, it is no wonder that all sizes of companies, from startups to global corporations, are choosing to call this state home.
]]> Sources indicate that because the state is popular with venture capitalists that are willing to invest in innovative startup companies, smaller companies with a focus on technology are coming to Colorado in droves. The financial resources that are available are a huge draw for businesses that need a willing investor to help them get off the ground.There are also large, well-established companies that have decided to relocate into Colorado. According to reports, the reasons for these moves may likely have something to do with the quality of life, the desirable cost of living and positive business relationships that are found here. These companies also likely realize that Colorado is already home to a large number of ground-breaking companies focused on areas related to energy, bioscience, green technology and healthy living solutions.
Deciding where to build a business is just one step in the complex process of starting and establishing a successful company. There are many other difficult decisions that need to be made, and business owners understand that making the right decisions is essential in starting or expanding a company. With the help of a business and commercial attorney, these decisions can become easier to make.
Source: 9News.com, "Is Denver the next Silicon Valley?" Jack Maher, March 26, 2013
Protecting an idea or invention can be extremely crucial for the creator. There are basically two ways in which a party can protect an idea. They can patent it or they can keep it secret. Each solution has strengths and vulnerabilities that a person may want to consider prior to making a decision on which route to take.
]]> Patenting an idea is a way of publicly releasing a product or idea and claiming ownership of it. This gives the creator legal protection of it and how it is used. If another party uses the patented material, he or she must pay the patent holder. However, there are parties that will sidestep their legal obligation to pay the owner and simply steal the patented information for their own use. Depending on the nature of an idea, publishing it could allow others to use it for dangerous purposes.This is the main argument that is made by some who favor keeping an idea a secret versus patenting it. By not publishing or releasing intellectual property into the marketplace, a company can protect these trade secrets from getting into the wrong hands. However, this solution is also not guaranteed to protect an idea. There have been many instances involving employees or hackers who unlawfully access a heavily guarded trade secret and steal it that way.
There may be no foolproof way of protecting an idea. However, there are ways to make sure it is as secure as possible by patenting it or limiting access to it. If it is improperly used or accessed, companies can explore the legal options they have when it comes to holding that party responsible.
Source: The Economist, "Can you keep a secret?" March 16, 2013
]]>When it comes to hiring, both the employer and the employee may have the same tendency to accept the first thing that comes along. People want a job while employers need an employee. However, it can be crucial that neither side rushes to a decision, particularly when there is an employment contract involved.
]]> There are a number of contracts that exist in today's business world. Some of them are designed to protect the interests of an employer while others serve to protect the employee. No matter what the contract is, a dispute over an employment contract can end up being costly to both parties. There are a few ways that people can avoid these disputes with a clear understanding of what a contract actually means.Make sure that terms that are in a contract are accurate and clearly understandable to all parties. Misinterpretations of a number or phrase can end up changing the intent of a document. In most cases, negotiations are possible so it can be important for employers and employees to be flexible when necessary. Be careful to fully examine any restrictive language, including items such as non-compete clauses. If there are questions about these terms, communication between employer and jobseeker should be open and direct.
It can be crucial to start a professional relationship off on the right foot. Rather than rush into an employment decision, both employees and employers should consider working through the terms of a contract with an attorney who understands front-end risk management.
Source: Forbes, "Negotiating An Employment Agreement," Stacey Hawley, March 11, 2013
According to a recent article in Business Insider, an entrepreneur and an MBA professor says there are some traits that all successful business people exhibit. Whether a business venture is large or small, every owner wants it to be successful. According to the article, if entrepreneurs exhibit the following 10 traits, it is more likely that they will have a flourishing business.
]]> Entrepreneurs that have business savvy and resources can be successful. Specifically, this would include business owners who are:There is also a need for entrepreneurs to have healthy expectations. This means that they should be:
Finally, there are traits that speak to a person's overall outlook. Successful entrepreneurs are:
According to the article, successful business owners often exhibit most, if not all, of the traits mentioned above. Any business venture can be a frightening, exciting and challenging experience. However, with the right skills and tools, a person can have a strong opportunity to be successful.
Source: Business Insider, "10 Personality Traits Every Successful Entrepreneur Has," Jim Price, Feb 15, 2013
A person may feel as though a termination was wrongful, but in many cases, an employer believes he or she is justified in firing a worker who violates the terms of a contract or company polices. If a company's employment policies conflict with state or federal guidelines, however, people can end up involved in a costly lawsuit.
]]> Recently, a woman in another state filed a lawsuit against her former employer and claims that they unfairly fired her for engaging in premarital sex and getting pregnant. Her former employer, a Christian college, responded to the claims by reiterating that the woman had been in violation of a community covenant contract that all staff members and students at the school are required to sign. According to the contract, everyone at the school is expect to share traditional Christian beliefs, which include abstaining from premarital sex, adultery and other behaviors they consider to be sexually immoral. According to reports, when the school learned that the unmarried woman was pregnant, they fired her for violating the terms of the contract by having premarital sex.However, it is being argued that the terms in the school's contract violate state and federal laws and therefore the woman's termination was wrongful. Claims of discrimination based on marital status, gender and pregnancy are cited in the woman's lawsuit against the school.
In order to avoid similar legal disputes, company owners should make sure their policies and contracts are legally enforceable and do not violate the rights of employees. With appropriate management and operations policies in place, a company can prevent lengthy and costly employment disputes.
Source: The Denver Channel, "Pregnant woman says San Diego Christian College fired her for having premarital sex," Feb. 26, 2013
When it comes to the search for venture capital, business owners may feel overwhelmed and confused with what financing is and is not available. However, there are some venture capitalists who are making themselves well-known to the owners of new and expanding businesses. One such firm has quietly been investing in and supporting companies for four years but has recently become one of the top venture capital firms in the country. It is also part of one of the world's most recognizable brands.
]]> Google Ventures is the financial arm of search giant Google. The firm has been active for four years in investing in and supporting businesses around the country. While many people are very familiar with the products and capabilities of parent company Google, the investment firm has flown a bit under the radar. However, in just four years, Google Ventures has pulled in $1.5 billion in various deals and is now regarded as one of the most active firms in the country, having invested in nearly 200 startups. This year alone, the company has made seven investments.In general, people understand that Google is a company known for acquiring other products. However, Google Ventures is strictly focused on pulling in profits. From making significant investments to developing exit plans, the firm is focused on making a profit from investments rather than turning them into companies for Google to eventually acquire.
Keeping an eye on the activities of successful venture capitalists around the country is helpful in understanding the trends in business financing. With all the developments and rapid changes that happen in this environment, however, it can be difficult. Business owners should be able to focus on the success of their product or company without having to worry about how they will find powerful or high-risk investors. For this reason, it may be very helpful for entrepreneurs in Colorado to work with an attorney who understands the business landscape and investing capabilities in the area.
Source: New York Post, "Google grows into a venture capital power," Garett Sloane, Feb. 14, 2013
]]>A creation of the mind, which can include various types of literary or artistic works, is generally regarded as intellectual property. Patents, copyrights and trade secrets also fall under the category of intellectual property. Business owners and individuals often want to protect these works so that other parties cannot copy them and call them their own. If this is believed to have happened, it is not uncommon for a serious legal dispute to arise.
]]> For example, one man recently filed a lawsuit against various parties responsible for the Fox television show called "Touch." The man claims that the idea of the show was stolen from work that he created and copyrighted over 10 years ago. In his lawsuit, the man says he had created two separate works: a novel and a screenplay. The executive producer, creator and other parties attached to the "Touch" series were charged with lifting the concept and material for their show from these two sources.However, a judge recently ruled that the parties were not guilty of copyright infringement. While the projects are thematically similar, the man cannot cite copyright infringement from two separate works. The judge then reiterated that in a claim of this type of misconduct, there must be only the protected work and the infringing work. In this case, the man cited two separate and unrelated protected works. Therefore, the judge dismissed the lawsuit.
Understanding what can and cannot be legally protected by trademarks, copyrights and patents can be difficult for many people. There are complex laws that can have a significant impact on the creator's rights to the work, so it is important to work with an attorney who understands business law.
Source: Yahoo, "Fox Wins 'Touch' Copyright Lawsuit," Tim Kenneally, Feb. 14, 2013
]]>There are many challenges that may come up during the beginning of a new business venture. From venture capital to employment policies, there are several issues and transactions that often must be addressed by business owners. One of the first things that a business owner often considers is where to setup a new business. According to recent reports, the state of Colorado has become a hub of activity for starting up a new high-tech business.
]]> When it comes to high-tech businesses, it is estimated that for every job that is created, more than four other jobs are also created in response. This so-called multiplier may be at least one reason why high-tech companies are starting up in such high numbers. In fact, Colorado has become quite a hot spot when it comes to high-tech startups, surprising many people who assumed that such businesses only grew and thrived in coastal cities. Some sources indicate that 70 of these businesses were started in Fort Collins just in 2010. These companies are also proving to be quite successful in terms of growth, with growth levels exceeding 60 percent in most cases.Even though growth may not be a high priority for many new and startup businesses, it is important to understand the environment in which a business is formed. Nationwide, there is a focus on job creation, retention and staying innovative in a global landscape. These are legitimate issues that business owners may want to consider when launching a company. But it is also important to make sure the fundamental business plans and practices are lawfully documented and executed to ensure that a business can start on the best path to succeed.
Source: The Wall Street Journal, "Weekend Read: Debunking the Myth of the Startup Hub," Ian Hathaway, Feb. 3, 2013
]]>According to reports, Anheuser-Busch InBev (ABI) is looking to purchase Mexican brewing company Grupo Modelo, who makes popular beers like Corona. If this transaction were to go through, the Justice Department is concerned that it will likely lead to an increase in beer prices nationwide.
]]> Currently, ABI is the largest brewer in the country and puts out the best-selling beer in the United States, Bud Light. If ABI merges with Grupo Modelo, who distributes the best-selling imported beer in the country, they would control about 46 percent of beer sales in the U.S. This is significantly more than the 29 percent that the second-leading beer company, MillerCoors, accounts for.Based on these numbers, the Justice Department stepped in and filed a lawsuit to prevent the merger. According to the government, this transaction would give too much control of pricing to the new entity. As it stands, ABI is generally assumed to be the price leader in the beer industry, while other brewers typically price their products to be competitive with ABI beers. Grupo Modelo, however, has stuck to their own formula for competitive pricing which has effectively put pressure on ABI, and therefore other companies, to maintain or lower prices.
Reacting to the lawsuit filed by the Justice Department, ABI stated that they were ready to fight for the transaction in court.
Source: The Huffington Post, "Anheuser-Busch-Grupo Modelo Merger Challenged By Justice Department," Pete Yost, Jan. 31, 2013
This is why it is often crucial for a company to adopt and enforce effective and legally-acceptable social media policies. It can be very challenging for a business owner to develop a policy that protects the company without infringing on a person's rights. Some of these policies that have been developed by companies are either overly vague or too restrictive and this can have a serious impact the actions that an employer may take against an employee believed to be in violation of the policies.
]]> The National Labor Relations Board has stated that workers have the right to discuss various matters related to working conditions without being at risk of getting fired for such discussions. However, if a person posts disparaging or damaging commentary about their employer on a personal Facebook account, can an employer take action if those statements are in violation of a social media policy?There is no definitive answer to this question. There are many factors that must be considered. For example, if the statements were made as part of a concerted activity addressing workplace conditions, benefits or wages, it is likely that the employee is protected from any sort of disciplinary actions. However, if the person is ranting on Facebook about a job, using offensive language and is in no way participating in a concerted activity about working conditions, the NLRB has previously upheld the actions of an employer who has fired the individual.
It can be very confusing for an employer to understand his or her rights when it comes to dealing with the social media behaviors of employees. In order to avoid having to make these types of decisions, it is important for a business owner to adopt and enforce a strong, effective and enforceable social media policy. They can then understand both their rights and their limitations when it comes to informing their workers of what is and is not acceptable behavior.
Source: The New York Times, "Even if It Enrages Your Boss, Social Net Speech Is Protected," Steven Greenhouse, Jan. 21, 2013
Wealthy investors who are willing to make this type of high-risk investment do not just throw money at every opportunity that comes their way. It often takes a strong business idea, effective business plan and the potential for a high return on the initial investment for many angel investors and venture capital companies to be attracted to an idea.
]]> Unfortunately, last year was a rough one for Colorado businesses in terms of venture capital. According to a recent report, investments by venture capitalists shrank by 9 percent in 2012. The report shows that in 2011, there was about $616 million invested in Colorado and last year that dropped to $560 million. The fourth quarter of last year was a particularly unexciting time for state businesses. According to reports, investments made during this time period decreased by a whopping 50 percent when compared to 2011. This trend was seen nationally as well, with an overall decrease of 9 percent in venture capital invested throughout the country.Many sources agree that the difficult state of the current economy played a role in this decrease. It is also believed that the uncertainty of the presidential election and the possibility of the so-called fiscal cliff contributed to the decline in investments.
However, sources believe that there is a renewed sense of confidence and motivation in the New Year making it likely that these investments will start climbing again soon. This is good news for startup businesses and companies looking to expand in Colorado. Securing this type of capital funding can be extremely important to the success of a company.
Source: Denver Post, "Venture capital plunges in Colorado in fourth quarter and 2012," Andy Vuong, Jan. 18, 2013
]]>When people talk about intellectual property, they are generally referring to creations of the mind. This can include copyrights, trademarks, patents and trade secrets. A recent report in Forbes explores how these types of IP are also being created virtually, and discusses whether they have real-world value or not.
]]> According to the article, which looks at online gaming as an example, virtual IP is being created all the time in massively multiplayer online games, which are online games that support thousands of players and can include different worlds created by users. So from a person developing economic models to govern specific game play to a user designing a building that appears in a virtual gaming scene, these are pieces of IP that are being created by individuals.The fact that users are developing their own online experience using their own symbols, software and graphics ends up making ownership of the IP a point of discussion. Much like other expanding businesses, online gaming is a worldwide experience. The experiences are so intertwined between countries that it can be difficult to unravel which material belongs to which party. Historically, the makers of the game would own everything, but with users now able to create their own virtual worlds and goods, the lines become increasingly blurred.
Innovations that are developed online and in virtual worlds are quickly becoming more and more valuable. Taking an in-game product and creating real-world ownership and value is a challenge that many business owners and individuals will likely come up against in the near future.
Source: Forbes, "Online Games And Crowdsourced Creativity: The Next Frontier In Intellectual Property," John Villasenor, Dec. 31, 2012
]]>For the people who may not be interested in starting a business from the ground up, there may always be the option to buy their way in at some point. Buying and selling companies is something that is done all the time, but it can require a sophisticated understanding of business transactions.
]]> TV star Patrick Dempsey recently came out of a business auction successfully after his investment group, Dempsey's Global Baristas, placed the winning bid on Tully's Coffee chain, which makes coffee that is sold in many Denver stores. The group's bid of $9.15 million beat out coffee giant Starbucks Corp. Tully's Coffee had previously filed for bankruptcy protection, so the winning bid must first be approved by a bankruptcy judge. If it is approved, Dempsey's Global Baristas will be the new owner of the Tully's chain stores and franchise rights.For others who may have been involved in the bidding for this company, it may have seemed like Starbucks would be the clear winner. Not only does Starbucks enjoy a global presence, but the company is based in Seattle, as is Tully's. However, many smaller companies were in the running for the company right alongside Starbucks, including a Colorado private equity firm.
With enough funding, planning and business savvy, smaller groups stand just as good a chance in negotiations as larger corporations do. In any business transaction, it can be crucial to work with an attorney who understands that there are a number of factors, consequences and benefits involved in buying or selling a business.
Source: Denver Business Journal, "TV's Dr. McDreamy outbids Boulder's Kachi for Tully's coffee chain," Mark Harden, Jan. 4, 2013
One of the most difficult tasks that a boss often needs to make decisions on is when and if it is necessary to fire an employee. Employees are protected from discriminatory termination, meaning that they cannot be fired for being a certain race, gender, religion or disabled. However, there are some situations that present a grey area.
For example, can an employer let an employee go for being too attractive?
]]> This situation recently came up in another state. According to reports, the employer is a dentist who worked with a 32-year-old woman who was his dental assistant. After years of working together, the dentist called the assistant into his office to inform her that she was being terminated because she was a threat to his marriage.The woman believed she should not have been fired because of her attractive appearance. She was good at her job and had worked with her boss for years. However, in the months leading up to her dismissal, the dentist reportedly commented on the assistant's tight, distracting clothing. Although the two never had any relationship outside of work, the dentist believed that he would jeopardize his marriage and pursue an affair if they continued working together.
The dentist maintains that the assistant's workplace behavior and dress was inappropriate, and therefore the firing was necessary. He and his wife even spoke with a pastor regarding the issue, and they were told that the assistant was a threat to their marriage and she should be terminated.
The state Supreme Court recently upheld a lower court's ruling that the firing was justified and lawful. The public's reaction to the ruling was split. Some agreed with the Court while others believe she was the target of discrimination. In either case, this lengthy and controversial lawsuit could have been avoided if the dentist had spoken with an attorney in addition to the pastor prior to making his decision.
Source: ABC News, "Dental Assistant Fired For Being 'Irresistible' Is 'Devastated'," Dec. 23, 2012
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