June 1st, 2022

5 Industries to Start a Small Business In Colorado

After a rough couple of years during the pandemic, small businesses everywhere — including Colorado — are trying to make a comeback. In 2021, the Small Business Administration oversaw $416.3 billion in emergency relief for small businesses across the U.S. This year, 11% of small businesses have reported increased employment, and more than a third who made half of their sales online have reported improved sales as well.  

Luckily in Colorado, a strong economy and business-friendly programs are paving the way for entrepreneurs. The state ranks above average for GDP, employment, and income growth. Last year, both new and existing entity renewals hit record levels for the state. Special financing assistance through programs like Colorado Loans to Increase Mainstreet Business Economic Recovery — or CLIMBER — provides new business owners with low-cost financing and working capital. 

Colorado is also home to many industries that are currently growing and thriving. Businesses in tech, health care, tourism, and energy, are flourishing. But some industries are particularly conducive to small business success — either because of their low cost or low risk to enter, a substantial demand in the market, or an existing business community that can provide support and mentoring. If you’re looking to start a new business in Colorado, here are five industries to consider.

1. Property management

Colorado may currently have a housing shortage, but long- and short-term rentals are plentiful. In fact, Colorado has ranked the eighth-best state in the country for Airbnb and traditional rent incomes, according to ColoradoBiz Magazine. With such a significant inventory of rental property in the state, there are many property owners who need help with everything from facilitating onsite repairs, appliance updates, and decorating to finding new renters and negotiating leases. If you already have a real estate broker’s license — required in Colorado for all property managers — you can parlay your education and experience into property management. 

2. Pool installation & maintenance

During the pandemic, pool sales increased dramatically across the country as people stuck at home looked for enjoyable ways to wait it out. The sudden demand has kept pool installers on their toes — the average wait for a pool in Colorado is now anywhere from a year to 18 months. And some industry experts expect the demand to stay high for a while. With so many new pools being ordered and built, maintenance services are also in high demand — such as basic cleaning and repairs, checking filters and chemical balances, and preventing and treating algae and bacteria growth. If you’ve ever thought about getting into the pool business in Colorado, now is as good a time as any. 

3. Hail damage repair

Hail repair hits home for many Coloradans — no pun intended — since the state’s unique geography and weather patterns make it a prime target for thunderstorms that produce damaging hail. The Front Range and high plains can see as many as seven to nine days of hail per season, and sometimes so much hail dumps during a storm that snowplows are required to remove it. Hail can break windows and windshields, dent siding and cars, rip up roofs, and ruin or wreck other structures. A mobile hail damage repair service specializing in homes or cars, or both, could be a boon for you in our often-stormy state. And while it requires a bit more expertise and know-how, roofing and siding installation and repair is another area entrepreneurs can look to innovate in or develop a business. 

4. Direct primary care clinic

Direct primary care is a subscription-based healthcare model in which patients pay a monthly fee to get nearly unlimited access in person, over the phone, or via video conferencing to a primary care provider, along with lower-cost screenings and other services. Colorado already has about 10% of the nation’s direct primary care clinics, serving around 63,000 patients. More people are looking for cost-effective, responsive, quality health care outside of traditional models, and more health care professionals are seeking greater job satisfaction. As a result, direct primary care is filling the need of everyone. If healthcare is your passion, and you want to get in on a model that’s fast gaining popularity, consider starting a new direct primary care clinic or similar approach to a healthcare service.

5. Tech/IT

Last but hardly least, it’s no secret that Colorado has a booming tech startup industry — 1,100 new tech-focused businesses were founded here in 2021 alone. The annual Denver Startup Week event that attracts thousands of attendees every year has been especially valuable to the tech community, and it also helps that the state’s governor, Jared Polis, is himself a seasoned tech entrepreneur and co-founder of seed accelerator Techstars. For prospective tech entrepreneurs, the ready-made tech startup community, skilled workforce, and affordable cost of living as compared to Silicon Valley continue to make Colorado an attractive place to get a tech business off the ground.

HR Guidance for Small Businesses In Colorado

Starting a small business is exciting but it also takes a lot of hard work and time. Not only do you need to learn the ins and outs of your industry, if you’re not yet familiar with them, but you also need to make sure you’re compliant with federal and state laws and regulations. Hiring the right team is incredibly important, too, which requires setting up payroll, conducting training, and deciding what type of benefits to offer employees, among other tasks. 

As you get ready to launch your business, partnering with Obsidian HR can ensure you’re starting out successfully. As a locally-based HR provider familiar with Colorado’s laws and industries, our experts can give you the advice and information you need to run your business smoothly and retain a competent, well-cared-for workforce. 

To learn more, download our step-by-step guide for starting a business in Colorado. 

The Step-by-Step Guide for Starting a Business in Colorado

Starting a business in Colorado? Download this guide with 16 clear steps, from conducting market research to finding tools to drive efficiencies.

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