Author Archives: Admin

Jobs Act Frees Cash for Small-Business Borrowing

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Floyd Morelos

Floyd Morelos, Vice President, Century Bank

One silver lining in the economy’s slow recovery is that deflated real-estate values have given many business owners the opportunity to purchase the building they’ve been leasing or to buy land on which they can construct a new building for their business. The federal government helps by offering loan guarantees through its 504 loan program. Under temporary provisions of the Small Business Jobs Act, the 504 program lets borrowers refinance mortgages on properties they already own.

Created in 1980 to encourage economic development, the 504 program has made it easier for businesses — the biggest job-creators in the country — to expand through the acquisition of assets. The program provides long-term, fixed-rate financing for the purchase of land, buildings, machinery, equipment and certain improvements. Continue reading →

Businesses Shift Focus to Veterans’ Needs

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Christy Valdez

Christy Valdez, President and CEO, ReForm Spine & Injury Care Center

As U.S. troops withdraw from Iraq and Afghanistan, the military’s focus is moving from international hot spots to hospitals and veterans centers at home. Images of service men and women striving to function with the loss of limbs stir compassion, but no images adequately portray the pain of those struggling to reintegrate into families and communities or those suffering from the debilitating effects of post-traumatic stress disorder (PTSD).

Nearly one of five recently returning veterans describes symptoms of PTSD. For Vietnam vets, the statistics are more alarming; 25 years after a 1988 study of Vietnam Continue reading →

Funds Connect Growers to Burgeoning Industry

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Monica Abeita

Monica Abeita, Regional Development Corp. for NNM Connect

Economic developers Robert Naranjo and Lucia Sanchez were pleased to see boutique wineries spring up along the high road to Taos. But when they discovered that grapes were being sourced from outside the immediate area, they jumped into action. With funding from Northern New Mexico Connect and the county of Rio Arriba, Naranjo and Sanchez helped organize local micro-growers – those with one quarter- to two-acre plots – into a grape growers association. Barely a year later, the group has received advice from multiple experts, pooled funds to order root stock in bulk and planted thousands of vines. In two years, when the vines reach maturity, the association plans to begin selling their combined harvest to local wineries.

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Names Matter to Business Identity

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Mike Mykris

Mike Mykris, Director, NMSBDC at Santa Fe Community College

A business’s legal name is usually that of its owner, though businesses often assume a made-up moniker that says more about what the business does than who runs it.

When the business is a sole proprietorship, its legal name is the owner’s full name, even if it does business under something else. A partnership’s legal name consists of the partners’ surnames or whatever name is assumed in the partnership agreement. Corporations and limited liability companies have a little more latitude to register a legal name with the state; their legal name doesn’t need to mention the individual owners’ names.

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Identify Specialty Before Looking for Investors

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Holly Bradshaw Eakes

Holly Bradshaw Eakes, Principal, The Holly Company Business Consultants

The greatest challenge an entrepreneur may face is finding capital to launch a business, especially when the business idea is related to high-cost startup such as that found in the technology sector. For an entrepreneur with realistic plans for rapid business growth and the potential to scale to larger markets, trading partial ownership for capital may be the only option.

Venture capitalists currently fund about one out of every thousand startups. With the odds stacked against obtaining equity capital, an entrepreneur must identify the investors most likely to invest in his business. Determining which source to pursue depends largely on industry focus, business stage and the amount of money needed. A handful of equity investors have offices in New Mexico and actively pursue investments in the state.

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Venture Capital: It’s More Than Money

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Kim Sanchez Rael

Kim Sanchez Rael, General Partner, Flywheel Ventures (at time of writing)

Jim Collins, author of Built to Last and Good to Great, and an old friend of mine, has written that the critical questions in life are who-decisions, not what-decisions.  “The primary question is not what mountains to climb but who should be your climbing partner,” he writes.  As professional investors, our evaluation of each potential investment opportunity emphasizes the entrepreneurial team more than market strategy, technology or financial projections. When evaluating the pros and cons of bringing on an investor as a partner in your business, your considerations should be similarly weighted toward who-decisions.  Professional investors should provide assistance and value in many areas beyond financial resources.  Here are some key areas to consider when selecting an investment partner:

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Truck Puts Chef on Road to Prosperity

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F. Leroy Pacheco

F. Leroy Pacheco, CEO, The Loan Fund

Kimberley Calvo relishes creativity. The former executive chef at Intel and UNM introduced healthy cuisine to employees and students before starting The Seasonal Palate, a catering company. While looking for a restaurant location to expand her business, Calvo realized that her business model could be just as creative as her cooking.

“It was going to be a small fortune,” she said about the cost of renting and equipping the building she was considering in the small town ofPlacitas. She also wondered if there were enough residents to support a full-time restaurant. “So instead of trying to bring them to me,” she said, “I would bring me to them.”

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Get Insight from a Debt Schedule

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Leslie Hoffman

Leslie Hoffman, V.P. of Lending and Client Service, ACCIÓN New Mexico ∙ Arizona ∙ Colorado

The last few years have been a bumpy ride for many small businesses. Sales may have slumped. Costs could have gone up. Small business owners have weathered this economic storm with a courageous combination of resilience, creativity, clarity and passion. Those who have been able to keep their doors open understand that important fundamentals about how to manage money in a small business are as true today as they’ve ever been.

Financial institutions do not want saddle people with loan payments they cannot afford. Community-based lending organizations, such as ACCION New Mexico •Arizona •Colorado, are in the business of helping people understand their financial health and providing access to healthy business credit.

That credit is a tool, and like all tools, performance must support its cost. Lenders do not want credit to become overwhelming and prevent a small business from reaching its goals. Continue reading →

Budgets Matter to Business

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Bobbi Hayes

R.A. Bobbi Hayes, CPA, CITP, CFE, CFF, CCIFP, Partner, Accounting & Consulting Group LLP

Business owners striving to make it through the tough economy need to know how cash flows in and out of their business. A good place to start is with a budget – a basic tool used to forecast when cash will be collected and when expenses must be paid.

Many owners of small and midsize businesses don’t take the time to create a budget, or they neglect to update the one they have. In this slow economic recovery, every dollar is precious and it’s more important than ever to know where money is going. Financial institutions also want to know; banks are beginning to require that borrowers include a budget with their loan requests.

Since a business budget is such a valuable tool, understanding how to create a good one is vital to obtaining successful results and improving a business’s chance of survival.

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Veterans Get Help in Business

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Lloyd Calderon, Director, New Mexico Veterans’ Business Resource Center, and Director, VBOC

When Freedom Construction of Edgewood was hired by the U.S. Army Corps of Engineers to upgrade the electrical system at Conchas Dam, the job was the first federal contract the company had been awarded. One of the reasons Freedom’s owners, Mark Beasley and Steven Tenorio, got the $1.1 million job is because they know what many veteran-owners of businesses do not: Federal laws set aside 3 percent of federal contracts for businesses owned by veterans who were disabled during the course of their military service.

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