STARTING A BUSINESS…
Can you Beat the Banker?
AIA NEW MEXICO
BUSINESS SEMINAR FOR ARCHITECTS
March 23, 2007
Presented by: Renee Barela-Gutierrez, MBA, JD
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So, you want to start a business… You’ve worked hard, you know your
trade, but ………
CAN YOU BEAT THE BANKER
AND
MAKE THE BEST DEAL?
Consider the following briefcases:
Case number 1: Why do you want to start a business?
Case number 2: Choosing the right legal entity.
Case number 3: Insurance and taxes.
Case number 4: Finance and Marketing.
Case number 5: Contracts and other Legal issues.
Case number 6: Beat the Banker
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Case number 1: Why do you want to start a business?
 Personal Reasons
 Business Reasons
The Banker’s Offer:
 You’ll make a lot of money
 You’ll have lots of free time
 You need to make something
unique to make money
 Most new business’s fail within 2
years
Beating the Banker:
 Do it for passion not money
 Do something you know about
 Know your market
 Acquire sufficient capital
 Plan
 Plan
 Plan
 Plan
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Case number 2: Choosing the right legal entity.
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Sole Proprietorship
Partnership
Corporation
LLC
LLP
FLLP
PC
The Banker’s Offer:
 You will have complete control
 Your partner will share in the
work
 It takes very little record keeping
Beating the Banker:
 Limit your liability
 Clearly define control and decision making
 Document the business relationship with a written agreement
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Case number 3: Insurance and Taxes.
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Professional Liability Insurance
Project Insurance
General Liability/Commercial Liability Insurance
Property Insurance
Other
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New Mexico Gross Receipts Tax
Withholding Tax
Self Employment Tax
Income Tax
Other
The Banker’s Offer:
 You don’t need insurance
 If it’s a cash transaction, you
don’t need to record it
 Record keeping, schmeckord
keeping
Beating the Banker:
 Find a good accountant and follow their advice
 Follow the rules
 Keep great records
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Case number 4: Finance and Marketing.
 Debt Financing
 Equity Financing
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Customer
Product
Price
Place
Promotion
Competitive Advantage
The Banker’s Offer:
 Just borrow from your credit card
 Debt financing is best; you’ll pay
it back
 To market your product you just
need to advertise; after all
selling is marketing.
Beating the Banker:
 Understand the principles of finance
 Find a good accountant
 Take the time to produce a marketing plan
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Case number 5: Legal issues.
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Contracts and written agreements
Employment
Intellectual Property
Forms
Compliance
Permits and Licenses
Dispute resolution
Mediation
Litigation
The Banker’s Offer:
 You can handle contracts and
other agreements yourself,
 In a pinch, any lawyer will do
Beating the Banker:
 Find a good lawyer and follow their advice
 Build an ongoing relationship with a lawyer
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Case number 6: Beat the Banker
BUSINESS PLAN OUTLINE
Summary
Business concept
Current situation
Key success factors
Financial situation/needs
Strategy
Key competitive capabilities
Key competitive weaknesses
Strategy
Implementing strategy
Marketing Plan
Market segments
Target market and customers
Customer Analysis
Customer needs
Customer buying decisions
Product/service description
Positioning of products/services
Pricing Decisions
Distribution
Promotion
Sales tactics
Advertising
Promotions/incentives
Publicity
Trade shows
Operational Plan
Key personnel
Organizational structure
Human resources plan
Customer service/support
Facilities
Financial Plan
Assumptions and comments
Starting balance sheet
Profit-and-loss projection
Cash flow projection
Balance sheet projection
Ratios and analyses
Supporting Documents
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Now you have the knowledge you need to make the best Deal. So………..
I have one final question for you:
Renee Barela-Gutierrez, MBA, JD
505-249-3675
PO Box 3007 Corrales, NM 87048
bglawfirm@justice.com
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AIA NEW MEXICO
BUSINESS SEMINAR FOR ARCHITECTS
March 23, 2007
Resources that help Beat the Banker
IRS Small business
http://www.irs.gov/businesses/small/index.html
New Mexico Small Business Development center
http://www.nmsbdc.org/nm_resources.html
Small Business Administration
http://www.sba.gov/nm/
Small Business Resources New Mexico (HUD)
http://www.hud.gov/offices/osdbu/resource/guide/local/nmexico.cfm
New Mexico Business Journal
http://www.bizjournals.com/albuquerque/
Findlaw Resources for small business
http://smallbusiness.findlaw.com/
National Federation of Independent Business
http://www.nfib.com/page/homeNM.html
Renee Barela-Gutierrez, MBA, JD
505-249-3675
PO Box 3007 Corrales, NM 87048
bglawfirm@justice
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