Starting your own business
An Entrepreneur is someone who takes an idea and transforms it into an opportunity. The idea could be as simple as recognizing that people get thirsty in warm weather and setting up a lemonade stand on a hot afternoon to earn a little spending cash. In most cases, individual entrepreneurs are the founding fathers (and mothers) of most successful businesses, including many multimillion dollar internet based companies. For example, Michael Dell started Dell Computers in his college dorm room with a thousand dollars, today the company is valued at over $100 billion. Such is the power of an idea.
Entrepreneurs are risk takers. An unsuccessful lemonade stand is unlikely to lose a lot of money but the failure of a large enterprise could put one in great debt. Entrepreneurs need to consider the risks in starting a new business. Most successful businesses start out small. Some start as a project for two guys in a garage (for instance, Steve Jobs and Steve Wosniak of Apple Computer), or maybe just an effort to make a hobby pay for itself. There are no age restrictions for starting a business. If you have an idea that you think could make money then consider the following steps to starting a business.
Research and Plan
A big part of any business startup is developing a Business Plan. A business plan answers the big questions of What, Where, When, Why and How. It involves stating your idea in terms of a business description and then detailing demand; competition; marketing; operating procedures; and financial needs for equipment, supply and personnel. There are a lot of good resources on writing a business plan. Start with the Small Business Planner provided by U.S. Small Business Administration. For more research on business plans consider checking out books from the library or investigating the links at the bottom of this page.
Find resources for assistance
The television program Shark Tank on ABC is all about entrepreneur's looking for money to move their business plan from plan to marketable product. While the Shark Tank is full of glamour there is lots of less known sources for financing small business start ups. They can include your personal savings, applying to your bank for a loan or applying to other types of financing programs. A good resource for finding funding in New Mexico is New Mexico Small Business Development Centers or ACCION.
Another important part in setting up a new business is addressing any legal issues that might arise. Any business has some legal responsibilities. Being prepared to address any legal situations that could arise is important. A good resource for free legal help in New Mexico is www.nmlegalaid.org.
Register your business
You've got a business plan and you have your start up financing all lined up. Before you can open your business and start working you must register with various Federal, State and local government branches.
| Agency | Address | Why you need to contact them |
|---|---|---|
| Internal Revenue Service | Internal Revenue Service Austin, TX 73301-0002 |
Federal Tax Identification number form SS-4 |
| US Patent and Trademark Office |
To register a trademark contact: U.S. Department of Commerce Trademark Office 2021 Jefferson Davis Highway Arlington, Virginia 22202 [703] 305-8341 or [800] 786-9199 To register a patent, contact: Asst. Commissioner for Trademarks, Patent Applications Washington, D.C. 20231 [800] 786-9199 | Register your patent and trademark |
| US Department of Labor | Comply with Labor rules, regulations & laws |
State Registration
| Agency | Address | Why you need to contact them |
|---|---|---|
| NM Taxation and Revenue Department | 1200 S. St. Francis P.O. Box 5374 Santa Fe, NM 87502 |
CRS-1 Filer's kit |
| NM Department of Workforce Solutions | 401 Broadway NE P.O. 1928 Albuquerque, NM 87102 |
ES802 form [on-line application] |
| NM Regulation & Licensing | 725 St. Michael's Drive Santa Fe, NM 87501 (505)827-7003 |
You will need to research the specific license & permits for your type of business |
| NM Workers Compensation Administration | 2410 Centre Ave SE P O Box 27198 Albuquerque NM 87125-7198 (505) 841-6000 |
Almost all employees in NM are required by law to have Worker's Compensation Insurance |
| Corporations Division of the Public Regulations Commission |
P.E.R.A Building 1120 Paseo De Peralta P.O. Box 1269 Santa Fe, New Mexico 87504 Toll Free: 1-800-947-4722 Marian Hall 224 East Palace Ave. Santa Fe, New Mexico 87501 Toll Free: 1-800-663-9782 Bokum Building 142 West Palace Ave P.O. BOX 1269 Santa Fe, New Mexico 87504-1269 Toll Free: 1-800-244-6702 |
File and maintain records of foreign and domestic corporations, professional corporations, maintain records of annual reports, other organizational information. |
| Office of the Secretary of State | State Capitol North Annex, Suite 300 Santa Fe, New Mexico 87503 (505) 827-3600 FAX [505] 827-3634 Toll Free 1-800-477-3632 |
Partnership & Trademarks Uniform Commercial Code |
| New Mexico Environment Department | PO Box 26110 1190 St Francis Dr Suite #N4050 Santa Fe, NM 87502 Tel. (800) 219-6157 (505) 827-2855 |
Monitoring and Licensing for various industries, occupations and hazardous materiels |
