by Teala Kail, Public Information Officer, NM RLD

The New Mexico Regulation and Licensing Department’s Construction Industries Division (CID) is considering two rule changes to the New Mexico Administrative Code (NMAC) that would increase reinspection fees and clarify the ratio of journeymen to apprentices in the construction industry. The agency wants to hear from the public before making the rules official and has scheduled five public hearings around the state to take public comment.

New Rules

One reason the agency wants to increase reinspection fees is to cover the cost of these services. The fee increase applies only to construction projects that require reinspections because they failed the first inspection.

This rule change is expected to encourage contractors to have their construction projects in their appropriate phases before requesting inspections. If the rule change takes effect, reinspection fees will rise from $45 to $80 for a second inspection and to $120 for a third or subsequent inspection.

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

The stories we hear about veterans tend to be heartbreaking ones that demand the attention of a nation at war in two countries — stories about veterans who are debilitated or made homeless by service-related physical or psychological injuries. But there’s a success story involving vets that few people hear. In New Mexico, that story involves the 22,600 businesses owned by veterans — fully one out of seven of the 158,200 small businesses based in our state, according to the Small Business Administration.

New Mexico is home to 180,000 veterans, 30,000 of whom have served in Iraq and Afghanistan. Many of those former soldiers hope to draw on the same commitment, dedication and courage that served them in battle to operate businesses that serve community needs and provide jobs to other Americans.

Hundreds of the warrior-entrepreneurs doing business in New Mexico find assistance in their quest at the Veteran’s Business Development Office, an office of the New Mexico Department of Veterans’ Services. State Secretary of Veterans’ Services John Garcia started this office about two years ago to help returning veterans establish new businesses or expand existing ventures — but he especially aimed to help eligible vets take advantage of new federal laws that set aside 3 percent of federal contracts for businesses owned by vets who were disabled during the course of their military service.

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Wayne Unze, Director of Business Brokerage at Maestas & Ward Commercial Real Estate

Pricing a business for sale requires evaluating its cash flow—another name for a business’s earnings before interest, taxes, depreciation, amortization and owner’s compensation are subtracted.  Cash flow is then multiplied by a number that falls within a range appropriate for the industry and market—a number that takes into account other variables that affect the business.

But unlike multimillion dollar enterprises, small businesses often find much of their cash flow goes toward the owner’s compensation (salary and benefits).  To accurately determine a small business’s true cash flow, its owner’s total compensation package must be removed from the equation to reveal essential operating expenses and thus avoid undervaluing the business.

The easiest and most widely accepted way to do this is to add all components of the owner’s compensation — things like health insurance premiums, salary, auto lease and profit sharing — to the earnings before interest, taxes, depreciation and amortization (known as EBITDA).  Other additions might include non-recurring expenses such as one-time moving expenses; however a seller must be able to prove all the cash flow components.  This means any expense he maintains is not business-related or is personal compensation must have a receipt or other validating document supporting the claim.

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Mark Walztoni, Human Capital Advisor at Flywheel Ventures and Managing Director at Sustainable Ventures Alliance LLC

Given that 60 percent of an angel investor’s decision to invest is based on the strength of the management team, according to the National Angel Association, an entrepreneur or investor needs to get the right people on the management team — in the positions that match their talents — and get the wrong people off the team.

Identifying and retaining top talent can be more challenging in New Mexico than it is in other places, judging by the numbers of reports about the dearth of top talent here.

It’s all in the specs

While candidate identification largely occurs online, the first step is to develop a clear job specification, including clear objectives and responsibilities for each job on the management team. The most effective companies use behavior-based questions about past situations to identify the cultural requirements and expectations of the prospective hire’s internal and external customers, peers and staff. Continue reading →

Deborah Peacock of Peacock Myers P.C.

Consumer reliance on Kleenex as the colloquial term for all facial tissues and Fiberglas the generic term for glass fiber insulation is an asset of incalculable value to the manufacturers of both products because Kleenex and Fiberglas came to be seen as the very incarnation of their respective products, rather than specific brands. To continue in this vein, the makers of both protect these names with trademarks to distinguish them from imitators.

Anyone with a product that could set a standard in its class in commerce should consider obtaining trademark protection. Before proceeding further, she should consult a qualified attorney or legal expert. Continue reading →

In 2008, the New Mexico Legislature passed a new law requiring contractors to carry a $10,000 Consumer Protection Code Bond to satisfy the financial responsibility requirement for licensure.  This new bond replaces the three options that were previously authorized by statute to satisfy this requirement.  These options included the Penalty Bond, the Cash Collateral Assignment, or the Audited Financial Statement.  As of July 1, 2009, this different bond type is required for all new licenses and all renewals of a current Construction Industries Division- (CID) issued license.

The change in the bond requirement is not merely a change in form and cost.  The state legislature amended the Construction Industries Licensing Act in the 2007 legislative session to change the type of bond required for licensure. Formerly, the bond could be attached only by the state to satisfy penalties assessed against a licensee by the state. Under the new law, a consumer is now able to attach the bond for assistance in correcting building code violations caused by a licensee.

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