Details Can Be Weighty When Renting Commercial Space

By Finance New Mexico

Renting a commercial space is a move many entrepreneurs postpone as long as they can, because it’s one of the biggest expenses and most consequential commitments a startup or young company faces.

A commercial lease binds landlord and tenant to a variety of promises. A well-executed lease can benefit both parties, but a hasty, vague arrangement can break an embryonic enterprise. Continue reading

Rural Development Grant Program Fosters Job Growth

The tribal administrative offices and community center of the Mescalero Apache Tribe, which received RBDG funds

By Finance New Mexico

Nonprofit organizations and government agencies in rural communities have economic development funds at their fingertips through the Rural Business Development Grant program (RBDG) of the U.S. Dept. of Agriculture. The program is designed to support job creation and economic development efforts of nonprofits and public entities, though small and emerging private businesses can access those funds for certain projects. Continue reading

Financial Literacy Essential for Business Owners

Carmen Martinez, director, Small Business Development Center at San Juan College

By Carmen Martinez, Director, Small Business Development Center at San Juan College

Business owners don’t need a degree in accounting, but they do need to know how to read basic financial statements and when to ask the accountants who prepare them to explain what they don’t understand.

No one wants to be like the business owner who believed she was making a profit because her checkbook had a positive balance. But even business owners who diligently record financial transactions using basic accounting software don’t always comprehend the reports their CPA generates based on these records.

That means they’re not using the expertise they pay for, and they’re not using the numbers as tools to build their business. Continue reading

Hospitality Disrupter Eyed for State, Local Revenue

AirBnb

By Finance New Mexico

AirBnb is not just another billion-dollar Silicon Valley start-up, although with a market value estimated at $30 billion, the company certainly qualifies. No, AirBnB is a disrupter, a company that has caused a fundamental change in the hospitality industry. And like any change, this one has produced winners and losers.

The winners include almost 3,500 people across New Mexico who have turned their spare bedrooms — and second homes — into a source of income. In Santa Fe, for example, there are nearly 1,000 people renting space. Continue reading

Tax on Out-of-State Business Purchases Aims to Keep New Mexico Competitive

Compensating Tax

By Finance New Mexico

Lots of New Mexico business owners don’t realize they’re required to pay a “compensating tax” for business-related purchases they make on the internet or in a state that doesn’t charge sales tax.

Some know they’re supposed to but they ignore it, assuming the state will never discover the nonpayment.

Most of the time, that’s a safe assumption because the state can’t monitor everything a business does. But it’s risky, nevertheless, because an audit could uncover the nonpayment and this discovery could result in a hefty fine — especially if the business acquires much of its raw materials from out of state, depriving New Mexico of significant tax revenue. Continue reading

Local Buying Gets Boost From Internet Platform

yellCast

By Finance New Mexico

Bill Foster is a digital marketing master. The serial entrepreneur developed keyword and search-engine ad revenue for pioneering companies such as Infoseek and Excite and now wants to use his experience and knowledge to help local businesses compete with national chains and internet behemoths.

Foster is a founder of yellCast, a New Mexico startup that connects buyers with local merchants by providing search-engine results that go a step beyond Yelp, Google and Bing and offer an interactive portal where buyers and sellers communicate directly.  Continue reading

Use Caution When Lending Startup Money to Family

Happy family

By Finance New Mexico

It can cost tens of thousands of dollars to start even a small business, and raising that kind of startup capital is challenging to someone with little savings, a blemished or nonexistent credit history or a loan rejection from a bank. If that someone is a relative, there’s a good chance you’ll be approached for a loan.

If you have the means, it’s hard to refuse such a request — especially if you believe your family member has the potential to build a successful, profitable business. Continue reading

Streamlined Food Prep Helps Local Chain Expand

By Claudia Infante, Projects Coordinator, New Mexico Manufacturing Extension Partnership

Rolling pizza doughAs Albuquerque-based Dion’s restaurant turned its entrepreneurial vision toward larger markets outside New Mexico in 2014, owners of the privately owned chain thought it was a good time to review operations with an eye to improving efficiency in its 20 existing outlets.

So Dion’s asked the New Mexico Manufacturing Extension Partnership to offer its expert assessment of how the restaurant was preparing and serving food and to suggest how it could modify the process to give the restaurant more value for its efforts. Continue reading

Business Altruism Pays Off Even When Payoff Isn’t the Point

By Finance New Mexico

By Finance New Mexico

For many businesses, philanthropic giving has an element of self-interest: It’s giving with the expectation of getting something back in the form of tax breaks and image building.

But more and more businesses are discovering that unselfish giving has a value that’s immeasurable and that reverberates throughout the community, the workforce and the economy. Continue reading

Air Force Veteran’s Business Growth Enabled by Accion

Firefighters training on extracting crash victims from a car wreck

By Finance New Mexico

Gary Peterson’s Albuquerque auto shop is a profit-generator with philanthropy at its heart.

Peterson, a 22-year Air Force veteran, started One Community Auto in Albuquerque to refurbish rundown vehicles and donate the sales proceeds to a variety of charities, from Assistance Dogs of the West to veteran suicide-prevention and domestic violence prevention programs. He calls this aspect of his business “social entrepreneurship.” Continue reading