How to Start a Small Business in New Mexico (NM)

Best Business Ideas for New Mexico

There are plenty of wonderful businesses that can flourish in New Mexico. However, if the only thing you know is that you want to start your own business, here are some of the best business ideas for New Mexico right now:

• Bubble tea business
• Drive-in movie theater
• Subscription box business
• Towing company
• Cover band management company

Whatever you decide, it’s important to draft an effective business plan.

Planning Processes

We know, we know: drafting a business plan can be daunting. That’s why we have a step-by-step instruction guide to creating your business plan.

1. Playing the name game

Choose a name for your business that is straightforward and doesn’t leave your customers wondering what you do. While there are some rules and regulations for naming your business, don’t let that discourage you. For example, Under the Cover Records is an excellent name for your cover band management company.

2.  Conducting market research

It’s crucial to get to know your market. Do search engine optimization research. Hold focus groups. Conduct surveys. You may find out surprising things! Under the Cover Records found out it may not have the market it originally thought it would when it limits itself to cover bands.

3.  Structuring your business

LLC, corporation, nonprofit, partnership, sole proprietorship. Which is best? It depends on what your goal is. Registering as an LLC has favorable tax treatment, while a nonprofit is funded by donations, as opposed to investors. Under the Cover Records would likely work best as a corporation, LLC, partnership, or sole proprietorship.

Registering in New Mexico

Get all the info you need about your business. Get your business’ name, the employer identification number (EIN), the name of your registered agent, and then file those formation documents. Depending on the structure you choose, you may need different documents.

Congrats, Under the Covers Records, LLC is now an officially recognized business in the state of New Mexico!

Best Location for Your Business in New Mexico

When deciding on the ideal place to put your business’ headquarters, it’s important to keep a few things in mind. Can this place withstand growth? Do you want foot traffic? Whether you want to operate out of your home office or the nicest office in the swankiest part of town, it’s important to make sure you get the proper documentation. Putting your business in an area like Albuquerque or Santa Fe would be great if you’re interested in foot traffic.

Under the Covers Records would work well in Santa Fe, not only for the foot traffic potential but also because there’s a joke to be made about the song.

Banking and Accounting

It’s important to make sure you have a separate bank account for your business. This not only makes it easier to track business expenditures, but it protects your private assets in the event your business is sued. Having a separate account makes sure your car and five vacation homes are safe. Opening a credit line for your business helps you to establish credit, which will make your business more favorable to lenders. We also recommend hiring a business accountant, as they can help your business save thousands of dollars a year.

Ensure Your Business Is Insured

Business insurance is crucial to growing your small business in New Mexico. It’s a way to ensure your business avoids any unknown risks, like an employee stubbing their toe on the property or a black bear deciding it wants to record his cover of Rick Astley’s classic “Never Gonna Give You Up.” In New Mexico, any company with three or more employees has to be insured. Yes, this includes LLCs and corporate officers.

Permits and Licensing

To operate your business legally, you’ll need to obtain the proper licenses and permits. Different types of businesses require different types of permits, and the best way to discover what you need is by searching for a federal, state, and local level. The best way to determine what is needed at a local level is by calling your local clerk’s office.

Hiring Employees

Hiring can be the most exciting part of starting a new business. Unless you’re a one-man show, you need to curate a team that best represents your brand. However, you need to make sure that you’re curating that team legally, so be sure to register with the IRS for employee taxes and report your new hires to the state of New Mexico. When registering for New Mexico State Employee Taxes, it’s important to make sure you are registered with the state’s gross receipt tax, unemployment insurance tax, and withholding tax.

Once you have your dream team set up, we recommend setting up a payroll. This ensures your employees get paid on time and gives you one less thing to worry about.

Branding

Branding is fun for some, miserable for others. How do you make your small business stand out? First, let’s start with the logo. Make sure your logo is representative of the brand, what you offer, and make sure it’s visually pleasing to your customer. Under the Cover Records, LLC thinks bright colors with a strong font work best to express what they do. You may decide muted, calming colors work best for your brand. There is plenty of software online that can help you if you’re stumped, too.

Branding also requires you to think about what your values are as a company. Do you believe there should be a managerial team for cover bands? Do you think having a managerial team for cover bands only reinforces Grateful Dead fans’ bad behavior? This might seem like an odd example, but it’s necessary to make it clear to yourself as much as to your customer the values your company holds itself to and what it can offer to your customers.

Do some personal reflection and truly embrace what your company believes in. Making sure these points strike home will ensure that your customers are in it for the long run.

Online Presence

In the day and age of social media, having an online presence for your brand is very important. While this can look like having a website and online store (if applicable), this also means needing Facebook, Instagram, YouTube, and TikTok accounts. One of the best things you can do for your business is following trends on social media. It makes you look hi and, in touch, plus, it will help your business flourish. Get creative!

Marketing

Having an online presence is great, but what about marketing on those platforms? All legitimate businesses have a website. And if we’re being honest, the less legitimate ones do, too. Unfortunately, social media profiles are not a replacement for a website. Having a professional website makes your brand seem trustworthy and reliable, and it offers all-around better branding.

If this seems to be way too much, don’t worry! Companies like Ecwid help your store grow and succeed. They can help you create a beautiful, easy-to-navigate website while allowing you to market your products on other online platforms mentioned above. Ecwid even allows you to track your digital sales on a dashboard, where you can see your inventory. They’ll help make sure your business is completely covered.