Month: February 2020

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Five Strategies to Successfully Manage Your Cash Flow

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Maintaining positive cash flow is critical to the long-term success of your business. You need cash to pay rent and salaries, buy supplies, purchase new office equipment or invest in new technology for your company. When you manage your cash flow effectively, you can then position your company to take advantage of opportunities when they arise and experience continuous and sustained growth. Consider these five strategies to help manage your cash flow more effectively:

  1. Stay on top of accounts receivable Your goal should be to collect payment from your customers as soon as possible. If you invoice customers, it’s best to state “payment due upon receipt” and consider offering a discount for paying on time (or early). And make it easy for your customers to pay you. Take advantage of automatic payment options, such as ACH and other payment services. Send reminders as needed with a link to easily make any outstanding payments.
  2. Be strategic with accounts payable. As you know, it’s imperative to pay your bills on time, so you avoid any issues or late fees. But you don’t have to pay your bills early – unless there’s a discount given to do so. Map out your recurring bills, so you know what you need to bring in each month to break even (or even save some money).
  3. Gather a healthy cash reserve. It’s essential to have cash available to pay for unexpected expenses that may arise. And, if you have a seasonal business, this becomes especially important to help pay for regular business expenses when not in season. Most financial experts recommend that business owners save approximately three to six months of savings to cover their costs. Start small and increase your contributions to a savings account regularly.
  4. Find ways to maintain an influx of cash. If you work with clients on a contract-basis, clarify all work required and the payment schedule from the beginning of the project. If anything falls outside of the original project scope, revise the contract and payment. Consider offering subscriptions for those who use your products and services regularly, or opt to get a monthly retainer fee for regular work completed. You may also choose to focus on boosting your sales – maybe sponsor a content, implement a referral program or provide a “limited-time-only” special.
  5. Control your debt. Too much debt will take away from your cash reserves needed for other purposes. When you do need to borrow money, pay attention to the terms and conditions of the credit offered. Work within your budget to ensure you’re only buying what’s needed when it’s needed. If you can’t afford it, don’t buy it.

The ultimate goal for your business should be to bring in more money than you spend. Positive cash flow gives you the ability to maximize opportunities that arise and build flexibility within your business, leading to a positive bottom line and a more lucrative future. To learn more about ways we can help your business in this area, stop by a branch near you!

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Five Ways to Protect Your Business from Mobile Payment Fraud

Most people expect their mobile devices to do everything they need – from watching television and ordering food to making purchases online or in person. If your business accepts mobile payments in your store or online through an app or website, there are ways to reduce your chance of becoming a victim of mobile payment fraud.

  1. Use secure a Wi-Fi network. One of the most effective ways to keep your data safe from intrusion is to use a secure Wi-Fi network. And, if you encrypt your network, any information taken will be useless. Talk to your computer expert (if it’s not you) to build a strong password for your router and a unique SSID name for your wireless network. Additionally, turn on the most recent and secure encryption within your router.
  2. Build-in biometric detection. Today’s devices come with many different biometric features (fingerprint scanning and voice or facial recognition) to confirm a person’s identity and deter fraudsters from using someone else’s phone to make purchases. Of course, not every customer uses the latest device. To protect any purchases made through your app, install biometric feature detection software to weed out fraudulent purchases.
  3. Verify your customer’s identity. Implement a two-factor authentication method for all mobile and online purchases to ensure your customers are who they say they are. This is where you send a verification code to the customer’s email address or phone number (via text or call) associated with the account. The customer must then use the code provided to complete the transaction.
  4. Require a CVV code. When your customers use a credit or debit card to make mobile transactions, require them to use the CVV (or three-digit) code on the back of the card. The use of the CVV code will reduce your chances of “card not present” fraud as the customer must have access to the physical card to complete the transaction.
  5. Use browser detection for online purchases. If your business accepts mobile payments for online shopping, using a browser detection protocol will prevent users from completing transactions through insecure browsers. You can then direct them to make purchases through your app or another approved, secure browser.

Don’t be afraid to offer mobile payments because of fraud – find ways to combat it. By implementing one or more of these tips, you’ll be on your way to protecting your business from mobile fraud and be able to offer customers an easy way to pay for your products and services.

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Find Your Perfect Life-Work Balance

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As a business owner, finding the balance between your work life and personal life can be challenging. And if you work from home, you may find the line between work and home gets blurry way more often. Believe it or not, though, you can find a balance in your life, but it may take some work.

Define what your “balanced life” looks like. To find your perfect work-life balance, start by answering these questions: What must come first every day no matter what? What barriers may keep you from having balance? Do you have established work hours? What can you do regularly to keep focused on your goal of having balance? Once you’ve mapped out what your balanced life looks like, share your vision with those you live and work with so they can hold you accountable and keep you on track.

Learn to delegate. One of the most challenging things for a business owner to do is delegate – especially if you are the only employee. The fact is that many of your customers buy your products and services because of you. But, to find the balance you desire, it may be time to hire an employee or an independent contractor who is trustworthy, has a good work ethic and sees your business as you do. That way, you can delegate your work and feel confident it will get done when needed. Just know that things may not get done exactly as you would do it – you’ll have to learn to be okay with that.

Limit your distractions. When you’re at work, be engaged in your work. But, when you’re at home, be present there as well. Turn off your devices when you need to be more focused. If you have employees, let them know appropriate times to contact you when you’re not at work.

Plan each day. If you know what to anticipate throughout the day, you’ll lessen your stress, be able to schedule breaks and find time to do the things you need to do. Whether you create your plan first thing in the morning and the night before is up to you. There are many organizational tools to help you plan your daily tasks and keep you on schedule. Yes, there will be disruptions in your day; however, when you have a plan, you can adjust easier.

Take personal breaks. No one’s a superhero. We all need time away from work – whether you take 10 minutes outside for lunch or 30 minutes to exercise in the morning. Whatever the case may be, taking a break is vital to help you stay sharp and energized throughout the day.

Take care of yourself. Do you get enough sleep every night? Do you make time to exercise at least 3-4 times a week? Is your diet filled with fast food or healthier options? The better you take care of yourself, the more energy you’ll have at work and at home.

Use digital tools. Take advantage of the digital tools you can use to manage your business. As an example, use Pinnacle Bank’s mobile banking to conduct nearly every transaction you need, 24 hours a day, seven days a week. You can even make deposits quickly and easily using your computer with our merchant capture service. You should also use the digital tools available to manage your day-to-day operations, such as Quick Books or Quicken, among others. You’ll spend less time doing paperwork and more time focused on the things that matter most.

Choosing to live a balanced life can be tough, but with the right steps in place, you can do it. And as you begin to create more balance in your life, you’ll be happier and have more peace no matter what challenges come your way.