Paul F. Goblet, Financial Advisor, NM SBIC
The state legislature created the New Mexico Small Business Investment Corp. (NMSBIC) in 2001 to support the state’s small businesses and help communities by providing capital in the form of loans or equity investments. This move to invest a small portion of the State’s Severance Tax Permanent Fund into the state’s economy was made at a time of economic prosperity, but the pool of investment capital it created is even more vital in today’s economy.
Mike Mykris, Director, NMSBDC at Santa Fe Community College
Writing a business plan is a daunting process to many entrepreneurs, but one that will help find financing and keep a new or existing business on budget and on schedule for growth and development. And it’s worth it — studies show that business owners without a formal plan are three times more likely to close their doors.
A plan can clarify how much money is needed to open a business and help the owner determine where to find capital — whether from a bank or relative — to keep it running. Established businesses are in equal need of a plan in order to stay on track or to make crucial changes, particularly with the state of the economy in mind.
Business plans are from 15 to 150 pages long. Any business plan should contain the following: Continue reading
Julianna Barbee, Director, NMSBDC at NNM College
Marketing is essential to the growth and success of any business, yet it seems to be the first part of the operating budget that managers slash when revenues dwindle and the economy gets unpredictable. Understanding and appreciating the role of marketing can prevent business owners from making the mistake of viewing this type of outreach as a dispensable luxury.
Whether you conduct business in a small, rural area or the global market, some principles are universal:
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Paul F. Goblet, Investment Advisor, NMSBIC
One job may not be all that important in New Mexico, and one small business may not solve the economic challenges facing the state. But the collective power of multiple jobs and businesses saved and created by investment through the New Mexico Small Business Investment Corp. — especially when nationwide unemployment hovers at 9.7 percent – makes a significant difference in the lives of people and the strength of communities.
Leslie Hoffman, V.P. of Lending and Client Service, ACCIÓN New Mexico ∙ Arizona ∙ Colorado
ACCION New Mexico · Arizona · Colorado reached a major milestone in its 16-year history this fall by surpassing the $30 million mark in loans disbursed to small businesses in the three-state area. The event was a milestone as well in the life of borrower Jammie Ross, who is using an ACCION loan to open Caked, a dessert and cupcake bakery, in northwest Albuquerque in early 2011 with her husband, Shane. It was Ross’s loan that pushed ACCION’s lending history past the $30 million milestone.
Ray Gulick, President & Creative Director, Evolution Web Development
Many business owners remain unsure how to market their companies online, even though they know that today’s consumers use the Internet to research products and decide what and where to buy. They know a static online brochure won’t generate business, but many perceive social media as a waste of precious time.
The middle way between the set-it-and-forget-it website and the time-sucking demands of social media is an effective and manageable approach to online marketing. This approach recognizes that more than 70 percent of shoppers use Google to tell them who provides the desired product in their local area. Meanwhile, phone book distribution has been decreasing steadily for at least five years as fewer people use the traditional Yellow Pages to do this research.
Winners Pete Smiley and Araña Schulke with EDD Cabinet Secretary Fred Mondragon
Two seniors from East Mountain High School in Sandia Park won the high-school division of the fourth annual New Mexico Youth Entrepreneurship Network’s 2010 Youth Business Plan Competition with their plan to run a hot dog stand at their school to make up for its lack of a lunch program. In the summary of their business plan submitted for the competition, seniors Pete Smiley and Araña Schulke proposed to establish a hot dog stand called Pete’s Wieners to provide hot lunches to classmates who hadn’t packed a lunch and didn’t want to eat vending machine fare.
Fred Owensby, Director, NMSBDC at Dona Ana Community College
When it comes to hiring people, small businesses usually don’t have the resources of large corporations, which have human resources specialists who are trained to recruit employees and to monitor their performance with regular performance appraisals. A small-business owner usually has to rely on gut instincts, observation and pointed questions when hiring a new employee and thereafter has to monitor how the employee is doing to make sure she is a good fit for the job and is performing at the height of her abilities. While large corporations sometimes tolerate the underperformance of mismatched workers, hiring the wrong person can be devastating to a smaller company.
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Shelley Gregory, President of Media Matched, Inc.
Judging by the number of Americans who participate in sweepstakes and other promotional contests, a company owner wanting to generate business might consider hosting some type of giveaway contest as a promotion for its product or service. Advertising the contest can make the promotion even more effective, but a business owner should know the rules before initiating such promotions.
The Federal Trade Commission has federal oversight over contests on behalf of the tens of millions of Americans who participate every year. But the FTC also advocates for the public when the contests seem rigged and offers sponsors advice about how to run a contest without running afoul of the law.
Candice Lee of Sommer, Udall, Hardwick & Hyatt, P.A.
Many businesses new to the game choose to organize as a limited liability company, or LLC — a hybrid of a partnership and corporation that attempts to reap the benefits of both. The owners in an LLC are called members, and each member holds a membership interest — similar to stock or shares — in the company. These membership interests are sometimes broken down into units.
As with a corporation, an LLC can have classes of membership interests, each with varying rights and preferences. Most important to members of an LLC: They usually are not personally liable for the LLC’s obligations.