Audit
For entrepreneurs running their business better
The Small Biz
HR Audit
Startup business management essentials — legal compliance, financing, operations, hiring, and the support ecosystem to thrive.
Presented by Monica Colgan · May 29, 2026
Startup business management essentials.
- 01The Entrepreneurial Imperative — why small businesses fail.
- 02Strategic Foundation & Leadership — planning & mindset.
- 03Legal Compliance in WA State — licenses, registrations, renewals.
- 04Product-Market Fit — beat the odds.
- 05Financing Strategy — funding your growth.
- 06Sales Opportunities — growing revenue streams.
- 07Money — Keep It Real — organizing your finances.
- 08Business Taxes — your tax obligations.
- 09Hiring & Getting Help — building your team.
- 10Support Ecosystem — Technical Assistance Programs.
- 11The ABC Program — 40 free 1:1 hours.
- 12Launch Industries Services — how we can help.
Monica Colgan, MSOD, MA, SHRM-SCP.
Practical, hands-on small business consulting from someone who's lived every stage.
- Founder of Launch Industries (since 2022)
- Owner/Founder of a Full-Service Restaurant (15 years)
- Owner/Founder of a Commercial Kitchen Business (3 years)
- Owner/Founder of a Product-Based Wholesale Business (10 years)
- Small business consultant — startups & scaling businesses
- 1,000+ entrepreneurs supported across sectors
- Consultant with the City of Seattle's Office of Economic Development
- Specializes in HR, Operations, Marketing, Finance & Digital Tools
About Launch Industries.
Certified Woman-Owned, Disadvantaged, LGBTQ+, & Small Business Enterprise. Equity-focused serving underserved entrepreneurs.
Services: Consulting, Bookkeeping, Compliance, Payroll, HR, Branding & Marketing, Operations, Grant & RFP assistance, Registered Agent, and more.
The entrepreneurial imperative — why most startups fail.
Disciplined execution and market understanding — not just innovative ideas — are what determine longevity.
42%
No Market Need. A disconnect between product and customer demand.
29%
Running Out of Cash. Often a downstream consequence of poor product-market fit.
29%
Other Critical Factors. Team, competition, pricing, regulatory.
The reality check: 50% of small businesses fail in their first 12 months. 66% struggle financially. 25–45% can't survive a financial crisis. Long-term survival (15+ years) is the exception, not the rule.
Traditional business plan vs. lean canvas.
A crucial early decision — each serves different stages and purposes.
| Dimension | Traditional Business Plan | Lean Canvas |
|---|---|---|
| When to Use | Significant capital, comprehensive strategy, established markets, formal presentations | Early-stage startups, quick validation, testing assumptions, agile development |
| Focus | Detailed operational and financial projections, market analysis, long-term vision | Problem-solution fit, customer segments, unfair advantage, key metrics |
| Key Output | Extensive document, financial statements, detailed market research | Single-page diagram, hypothesis-driven, concise overview |
| Ideal For | Established businesses, mature industries, securing loans & partnerships | Innovative products, disruptive technologies, rapidly evolving markets |
Building your foundation for success.
Market Validation
Customer interviews, MVP, willingness to pay.
Financial Acumen
Cloud accounting, separated accounts, cash discipline.
Legal & Compliance
Entity, licenses, taxes, employer obligations.
Strong Leadership
Servant leadership, healthy culture, clear roles.
TA Ecosystem
Local resources — leverage them aggressively.
Legal compliance in Washington State.
A clear understanding of sequential processes ensures compliance and avoids common pitfalls.
- 01Legal Entity Formation & Maintenance — establish as LLC or Corporation with the WA Secretary of State.
- 02Business License with WA DOR — obtain your Unified Business Identifier (UBI) through the Washington Department of Revenue.
- 03Payroll Registration — register with the Employment Security Department (ESD) and Labor & Industries (L&I) for payroll taxes and workers' comp.
- 04WA Minimum Wage Compliance — adhere to the state minimum ($16.66/hour for 2025; higher in Seattle).
- 05Employee vs Contractor Classification — use the "economic realities" test for proper legal and tax treatment.
Essential business registrations.
Registered Agent
Designate an agent to receive legal documents on behalf of your business.
WA Secretary of State
Register your business entity and maintain good standing with annual reports.
WA Department of Revenue
Obtain your business license and manage excise tax obligations.
Reseller's Permits
Authorize purchase of goods for resale without paying sales tax.
EIN (IRS)
Federal tax ID for hiring employees and opening bank accounts.
City / Municipal
Local business license and city-specific regulations.
Seattle minimum wage: $20.76/hr. Worker classification uses the "economic realities" test. Register for unemployment insurance + workers' compensation.
Product-Market Fit — preventing the #1 cause of failure.
Rigorous validation. Define the market, build the MVP, measure for fit.
- 01Define your target market — ideal customer segments, pain points, demographics.
- 02Conduct market research — surveys, interviews, competitive analysis.
- 03Identify your value proposition — unique benefits that solve customer problems better than alternatives.
- Retention Rate — % who keep using your product
- Net Promoter Score (NPS) — likelihood to recommend
- The 40% Rule — at least 40% would be "very disappointed" without you
- Expansion MRR — revenue from existing customers via upgrades
Financing strategy — by risk level.
Match the funding source to your business type, growth expectations, and tolerance for outside involvement.
Own Funds (Bootstrapping)
Personal savings, assets, business revenue. Complete control, no interest, no dilution.
Grants
Non-repayable funds — no debt, no equity dilution. Highly competitive with strict requirements.
Lines of Credit
Flexible bank loan up to a limit. Pay interest only on what you use. Cash flow safety net.
Bank Loans
Predictable repayment, lower rates than alternative debt. Builds business credit.
Be careful with: Merchant Cash Advances (MCAs) — high effective rates that can hollow out cash flow. Always evaluate APR, total cost, and repayment terms before signing.
Sales opportunities — expand your channels.
- eCommerce on your own website — build your brand
- Etsy — craft and handmade buyers
- Print-on-demand — sell custom products without inventory
- Faire — connect with independent retailers
- Pop-ups — test markets with temporary retail spaces
- Markets & events — engage customers directly
- Wholesale — develop line sheets; Square has wholesale tools
- Square
- Clover
- Shopify
- Squarespace
- Stripe
- Melio
- QuickBooks Payments
Money — keep it real.
Mastering your financial records is the foundation of business success and compliance.
Track all revenue.
Retail, wholesale, eCommerce, other income — every dollar accounted for.
Categorize expenses.
Distinguish COGS, operating expenses, and loan payments.
P&L + Balance Sheet.
Quick access for informed decisions, loan readiness, and tax prep.
Who is doing it?
Define ownership for every financial task — accountability prevents drops.
When does it happen?
Weekly, monthly, quarterly schedules and deadlines for every task.
Procedures Manual.
Document processes — your future self will thank you.
Tool of choice: QuickBooks Online. Pro tip: work with a bookkeeping professional to ensure accuracy and avoid fraud.
Business taxes — your obligations.
- 01WA DOR Excise Tax — file regularly based on your assigned schedule with the Department of Revenue.
- 02City of Seattle (or other) B&O Excise Tax — report your business and occupation tax to the city on schedule.
- 03IRS Estimated Taxes (Quarterly) — make quarterly estimated payments to avoid penalties and interest.
- 04April 15 Income Tax Deadline — file your annual federal income tax return.
- 05King County Personal Property Tax — annual taxes on business equipment, furniture, and fixtures.
- 06Work with a tax professional — a CPA or tax advisor ensures compliance and optimizes your strategy.
Getting help — building your team the right way.
Each step protects you legally and sets up your team for success.
Employee vs Contractor
Understand the legal differences — see our IC vs Employee deck.
Required Accounts
Set up WA L&I, ESD, IRS accounts before hiring.
Payroll Systems
Reliable software (Gusto recommended) — wages, taxes, compliance.
Onboarding
Proper employee + contractor onboarding (and offboarding).
Training
Effective training programs and continuous development.
Performance Reviews
Regular evaluations, feedback, performance management.
Tax Obligations
Stay on top of employment tax filing requirements + deadlines.
Work with HR
An HR consultant helps you navigate complexity and stay compliant.
Entrepreneurial support — Technical Assistance Programs.
King County offers a diverse array of resources to help businesses thrive sustainably and navigate complex operational challenges.
EnviroStars
Green certification & eco-business guidance.
Greater Seattle SCORE
Mentoring and small business advice from experienced volunteers.
Small Business Development Center
Free, confidential business advising backed by the SBA.
City of Seattle ABC
40 free 1:1 hours of consulting (next slide).
Many regions have similar offerings — chambers of commerce, economic development offices, cannabis-specific programs (CORE Sacramento, WA Commerce Social Equity, Long Beach Cannabis Equity), and industry-specific incubators. Always check what's available locally.
The ABC Program — 40 free hours of consulting.
City of Seattle businesses get 40 hours of free consulting paid for by the Office of Economic Development. Funded by the Jumpstart payroll tax on big employers (Amazon, etc.) — designed to drive small business growth in the city.
Must have a Seattle business license + meet 2 of 3:
- 01Less than 50 employees
- 022 or fewer brick-and-mortar locations
- 03$5 million or less in revenue
- Business Development
- Marketing Support
- Accounting & Tax Help
- Loan Support
Schedule a call with our team to begin — register at launchindustries.biz
Getting navigational help from Launch Industries.
Equity-centered programs and expert guidance — tailored systems, transparent rates, and dedicated client success managers.
Deep Small Biz Experience
Decades across multiple industries — we've been where you are.
Proven Program Management
Established systems for seamless execution.
Human-Centric Approach
People, Planet, then Profit.
Tailored Tech
Scrappy — we find & build the best systems.
Measurable Success
Extremely low turnover. 100% 5-star Google reviews.
Flexible & Accessible
Dedicated CSM. Text, phone, email, Zoom — meet you where you are.
Community Impact
10% of profits go back to community organizations.
Comprehensive Team
40+ team members with diverse backgrounds.
Transparent rates.
No hidden fees. No surprise invoices. Predictable pricing for predictable budgets.
$120
Per Year
Client maintenance fee
$125
Per Hour
Standard rate
$85
Per Hour
(Flat monthly subscription)
Project-
Based
Custom scopes & pricing
for defined projects
Better
Thank you
Run your business
better
Every founder needs the foundation, the plan, and the support ecosystem. Now you have all three.
Questions? Schedule a follow-up — launchindustries.biz