Tag Archives: small business

Value Proposition is First Step Toward Market Success

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To stand out in a market saturated with consumer products and get the attention of consumers deluged with advertising appeals, an entrepreneur needs to offer a product or service with obvious benefits and unquestionable superiority over the competition.

That isn’t as easy as it sounds. The history of U.S. commerce is littered with countless products whose inventors misjudged the market’s appetite or need.

Getting a product or service to market begins with a value proposition: a sober evaluation of who the product is for, what need it will fulfill, what dissatisfies consumers about the products currently being used to fulfill that need and how the new product is a marked improvement. Continue reading →

New Perspective Can Jump-Start a Business

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Business leaders are a hardy breed, loath to admit trouble and express anything but optimism and confidence. This tough façade is handy when applying for loans, seeking investment capital and competing in the rough and tumble marketplace.

But it’s hard to maintain when customers are drifting away, employees are quitting, cash flow is falling short and a new product is taking too long to reach market. It’s hard to stay externally cool when internal fears wear down nerves and mental stability.

As tempting as it might be to turn inward and work even harder at such times, experts suggest a healthier approach is for the business owner to create some distance between her personal and professional lives. Continue reading →

Distributors Expand Market for New Mexico Companies

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Owners of The Bitter End found that distributors could increase revenue. Article by Sandy Nelson.

Bill York started making his own bitters nine years ago while bartending at a Santa Fe cigar bar, where he learned the alchemy of sophisticated cocktails. His small company, The Bitter End, now manufactures its distinctive handcrafted bitters at a Santa Fe facility and reaches consumers through distributors in New York, California, Chicago and Europe.

“This wasn’t the beginning of the craft cocktail movement,” York said, “but there weren’t that many bitters makers on the market, and when I got the idea for spicy, concentrated bitters, it seemed like a good idea to give it a go.”

York developed his initial five recipes while learning how to navigate the bureaucracy of marketing a food product. New Mexico requires alcoholic beverages to be marketed through a distributor, but mixers — classified as alcohol flavorings — are treated as food products.

“I set up a website to accept sales and started sending out samples to prominent bartenders and influencers,” he said. “We visited a lot of bars and gave out a lot of samples; we tweeted like crazy. We went to Tales of the Cocktail [the world’s largest cocktail trade show, which happens every July in New Orleans] and set up a booth to meet people and sell bottles.” Continue reading →

Market Data Available to Small Businesses

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Article by Sandy Nelson.

A business plan is incomplete without a financial section that forecasts how the owner expects the company to grow and how much revenue he believes the company will generate based on his reading of the market for its products or services.

But unless that projection is grounded in reality, it won’t make the desired impression on a lender or investor — or even on a landlord who wants some assurance the business will last as long as the commercial lease.

Lenders, venture capitalists and other investors who finance startups deal in concrete numbers, because they’re betting real money on a concept or enterprise that’s typically untested. If they’re presented with an educated guess about the market that exists for a given product or service, they expect it to be a well-educated one. Continue reading →

Predictive Analytics Isn’t Just for the Big Guys

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Image courtesy of Carlos Muza. Article by Sandy Nelson.

Predicting consumer behavior can be an obsession for businesses, no matter what their size. Big corporations dedicate entire departments to divining what people will want next so they can be first to offer it, and they invest massive amounts of money into predictive analytics—the mining of massive sets of data for patterns and trends in hopes of giving businesses a competitive edge by helping them predict the future.

Smaller businesses typically don’t have the means or need to invest in the sophisticated types of data crunching that their larger cousins do, but smaller-scale data analysis tools can help them track past and real-time trends and behaviors so they can make fact-based decisions about how to allocate resources. Continue reading →

Delegation Equals Liberation for Small Business Owners

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Product shipment preparation is one task that could be delegated. Article by Sandy Nelson.

Sooner or later, an entrepreneur has to know his limits and acknowledge that some tasks can and should be done by others to allow him to focus on the bigger picture. That requires delegation — trusting others, whether subordinates, partners or independent contractors, to complete an assignment as directed.

As obvious as that sounds, an entrepreneur can have a hard time trusting others with his “baby,” ultimately defeating many business objectives and stunting the company’s natural growth.

Many businesses in New Mexico start small, with the owner doing all the work that’s required to get off the ground. Success only increases the workload, and the owner who doesn’t delegate eventually will find her attention pulled away from mission-critical decisions into fussing with day-to-day minutia — answering phones or emails from clients or vendors, filing, blogging — or running in place trying to accomplish tasks outside her expertise. Continue reading →

Even a Small Management Team is Essential to Startup Success

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Article by Sandy Nelson

While it’s normal for the owner of a new business to go the do-it-yourself route, either for lack of money or sparse human resources, no one individual can perform every task associated with nurturing a startup and do all of them well.

The person who sets the idea in motion might not have a clue how to keep books and end up avoiding this essential skill in pursuit of more interesting or gratifying activities, such as networking and prototype creation. Continue reading →

SEC rules allow everyone to invest in small businesses

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By Karl Dakin, Owner, Dakin Capital Guild LLC

Owners of startups and early-stage businesses can now look beyond traditional financing and equity sources when searching for growth capital. Changes in federal and state laws make it possible for everyone — not just the top three percent of income earners known as accredited investors — to invest in small businesses.

Crowdfunding is the activity of raising money from everyone. Organizations have used it since the late 1990s to obtain a large number of small donations for art and philanthropic projects. Rules adopted by the U.S. Securities and Exchange Commission (SEC) in 2015 allow the general public to participate in securities-based crowdfunding. Instead of receiving a tee shirt or other gift of appreciation for a donation, crowdfunding investors get equity in the company they help fund. Continue reading →

Survival tactics help business owners stay on track

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Entrepreneurship is exhilarating and dynamic, especially in the beginning, as the business plan is set in motion and a product or service begins its path to market. The unpredictability of this journey is part of the reason it’s so stimulating to start and build a business, but maintaining that level of excitement and drive can be challenging when the business’s evolution doesn’t unfold according to plan.

When initial funding from family or an investor runs out before benchmarks are met, a startup owner can worry about his ability to repay investors and stay on track. Even businesses that reach the second stage of maturity can stumble — for example, when a large account goes to a competitor or a product doesn’t find traction. Continue reading →

Identity Theft Victim Gets Accion Loan to Start Educational Nonprofit

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Edwin Rios

Edwin Rios, Loan Assistant, Accion New Mexico – Arizona – Colorado

Mark Medley was working with a business consultant to recover from identity theft when he heard about Accion New Mexico–Arizona–Colorado. What Medley learned while trying to repair his credit prompted him to start a nonprofit — ID Theft Resolutions — to help others protect themselves from identity thieves and to rebound as quickly and completely as possible if their efforts fail.

Medley got a loan from Accion to help him get the nonprofit going after obtaining his designation as a 501c(3) nonprofit. Accion offers loans as small as $200 and as large as $300,000 to people who might otherwise be turned down by lenders because they are a startup or have credit problems.

Medley qualified in both cases: His credit score was destroyed by identity theft and his nonprofit was the equivalent of a startup.

Continue reading →