Tag Archives: business help

Candy Company is Sweet and Lean

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Jennifer Sinsabaugh, Operations Director, NM MEP

When Clovis-based Leslie Candy Company was purchased by Greg Southard in 2002, the 50-year-old company was using trusted manufacturing processes and recipes to create peanut patties, brittles and haystacks for distribution to supermarkets, convenience stores and specialty boutiques throughout theUnited States.  Southard invited New Mexico Manufacturing Extension Partnership into the organization to review how things were flowing on the manufacturing floor.

Today, Southard still uses the company’s savory recipes and traditional cooking methods, but he now runs a lean shop with streamlined operations. “New Mexico MEP came in, watched our processes and provided feedback and solutions,” said Southard. “Based on their recommendation, we implemented an incentive program for our frontline employees, which resulted in a production increase of 25 percent, while lowering overall operating costs. New Mexico MEP helped us to look at our processes in a new way,” he said.

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Consider Strategy Before Seeking Equity

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Tom Stephenson

Tom Stephenson, Managing General Partner, Verge Fund

Once an entrepreneur decides that equity capital is the best way to finance his business, the next questions are how much and when should it be raised? One approach is to determine from the business plan how much cash shortfall is projected early on and raise that amount. But raising money in multiple rounds is often a better choice, allowing the entrepreneur to retain a greater portion of ownership.

If a business plan calls for $3 million in total financing to achieve profitability in three years, a startup raising that money all at once will give up a large portion of the company — perhaps as much as 75 percent. New companies are high risk; if investors put in less at the beginning, they will be willing to bet more money on a promising venture later, taking fewer subsequent shares of the business in the process. Continue reading →

‘Made in America’ Heats Up

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Yolanda Garcia Olivarez

Yolanda Garcia Olivarez, SBA Region VI Administrator

Joseph Armijo has consistently created jobs: his business added 12 employees over the past 10 years – about one a year. ButArmijo’s Albuquerque-based company, Four Winds Mechanical HTC/AC, may soon accelerate its rate of hiring. With help from the American Recovery and Reinvestment Act (ARRA),Armijonow has the resources to bid on large contracts that, if awarded, will allow him to quickly hire up to five additional employees. Four Winds Mechanical provides plumbing, fuel (gas) process piping, sheet metal work, and heating and air conditioning services, including equipment repairs.

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Investors Bring Benefits Beyond Capital

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Les Mathews

Les Mathews, Mesa Capital Partners

Business owners who obtain outside equity – whether from family, friends or institutional investors – quickly learn money has strings attached.

Most outside equity providers want to get repaid over a reasonable period of time and at a very good rate of return. In exchange for providing capital, they obtain a piece of the company, thereby becoming business partners.

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Government Contracting: A New Path to Increased Revenue?

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Elaine Palin

Elaine Palin, Advisor, PTAP at Santa Fe Community College

In times of economic upheaval when private sector output slows, government contracts may mean the difference between running a company at profit rather than loss. The Procurement Technical Assistance Program, set up by the New Mexico Small Business Development Network in 2009, is a non-profit organization that helps small businesses obtain government contracts.

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Stay Stable with Balanced Cash Flow

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Sandra Taylor Sawyer

Sandra Taylor Sawyer, Director, NMSBDC at Clovis Community College

Cash-flow imbalance is the leading cause of business failure in a healthy economy, according to the U.S. Small Business Administration. So when the economy is sputtering toward its prior vigor, it’s more urgent than ever to maintain a balance between what’s flowing into the business and what’s flowing out.

In business, cash is king. It’s used to pay short-term bills, cover unexpected emergencies and invest for future business needs. Savvy business owners look beyond income and expenses by keeping an eye on cash to manage all cash inflows and outflows.

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In the Zone: Know the Laws About Home-Based Businesses

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Don Bustos

Don Bustos, Director, NMSBDC at Luna Community College

Almost half of U.S. businesses are based in the business owner’s home, according to the U.S. Small Business Administration, and that number might grow as more people decide to go into business for themselves.

Those planning to launch a home-based business in New Mexico need to understand the zoning laws that apply in their area. Depending on where one lives in the state, zoning laws are enacted by city or county officials.

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Small Businesses, Labs Celebrate Collaboration

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Monica Abeita

Monica Abeita, Regional Development Corp. for Northern NM Connect

This year marks the tenth anniversary of the New Mexico Small Business Assistance program, created by the state Legislature in 2000 to provide technical help from Los Alamos and Sandia national laboratories to small businesses throughout the state.

At the 2011 NMSBA Innovation Celebration, held April 7 at the Indian Cultural Center in Albuquerque, laboratory officials recognized 12 small businesses that have participated in the program. The businesses are in both urban and rural communities of New Mexico, and include agricultural companies, medical technologies and an irrigation district.

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Hired Hands: Employees or Independent Contractors?

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John E. Barraclough, Jr., CPA and Managing Principal, Barraclough & Associates, P.C.

John E. Barraclough, Jr., CPA and Managing Principal, Barraclough & Associates, P.C.

It is more than a matter of semantics to the Internal Revenue Service when a business owner determines that the people who work for him or her are independent contractors rather than employees.

If an individual is a genuine employee, the employer must withhold and pay Social Security and Medicare taxes, withhold income taxes, and pay unemployment taxes on the wages.  An employer also might offer benefits such as health insurance, vacation pay, and retirement incentives.

If an individual is an independent contractor, the employer does not have to withhold taxes or offer benefits or retirement incentives.  The independent contractor must file an income tax return and pay income tax as well as self-employment tax to cover his or her own Social Security and Medicare liabilities. Continue reading →

Built by Association: Chambers of Commerce Help Businesses Survive, Grow

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Simon Brackley

Simon Brackley, President & CEO, Santa Fe Chamber of Commerce

The past few years have been difficult for many businesses, with a protracted recession forcing consumers to change their buying habits and postpone nonessential expenditures. Business owners feel the pinch of these conservative spending habits and sometimes feel they have no place to turn for advice. That’s where chambers of commerce can help.

Especially during a recession, business leaders need to stick together, and the chamber of commerce is one way to do that. Larger chambers provide confidential counseling and business assistance at no charge to members.

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