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6 Questions Your 2020 Business Plan Should Answer

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A business plan is your road map to success. Even if you experienced success in 2019, it’s critical to keep it updated every year. It allows you to organize your strategy – from operational plans to marketing. As you look to 2020, what questions should your business plan answer? Let’s take a look.

Question #1: What need does your company address?

In other words, what do you do? Sure, you can highlight all the products and services you provide, but what is it that keeps your customers coming back to you? What is the very core of your business? What useful thing do you offer? And, be sure to back up the need you address with research.

Question #2: What makes your business unique?

Take time to analyze your business and compare what you offer to your competition. Determine what you’re doing right, what your competition is doing right, and identify how you are different. Then, you’ll want to emphasize what makes you unique throughout your plan.

Question #3: Who’s your best customer?

Here’s where you need to get specific. Describe your ideal customer – age, gender, education, geographic location, work status, marital status, etc. While this may evolve, it’s good to have a primary and secondary target to focus your operational and marketing efforts.

Question #4: How do you plan to make money?

Remember, there are two sides to this question – how much you’re going to sell and how much you’re going to spend. Will the amount you sell in 2020 surpass the amount you owe? When will you break even? How and where are you going to sell your products and services? And, how much will your “ideal” customer pay for what you’re selling?

Question #5: What marketing plans do you have for 2020?

Your marketing strategy is a critical part of your business’ success – and often one that’s overlooked. Review what worked well for you over the past year. Then, look at what your competition is doing as well. What marketing resources will you need to be successful? Write down everything you plan to do and then begin to organize it in a way that makes sense to accomplish your goals. You may need to create a stronger digital marketing presence or attend a few tradeshows throughout the year. Or, maybe it’s time to create an app for your business or simply stick with traditional newspaper advertising.

Question #6: What resources will you need to accomplish your goals?

This is really where the rubber meets the road. What is it going to take for you to accomplish your goals? Will you need to get a business loan to invest in technology? Do you need to hire more employees? Is it time to outsource certain functions so you can focus on your business and customers? Be specific and error on the side of caution – your life balance is essential.

Each quarter, spend time reviewing your plan. What is working? What do you need to adjust? Are your goals still realistic? As you progress through the year, you may encounter new challenges and opportunities. Be sure you have built in the ability to adjust and adapt for ultimate success.

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Blog Business Growth & Capital

How to Choose the Right Business Loan

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As your business grows, you’ll likely need to get a business loan – whether you plan to expand, enhance your products and services or need an infusion of cash for emergencies or seasonal concerns. With so many business loan options available, it may be overwhelming to determine where to start. Although the process for approval may be different with each lender, consider your answers to the following questions to help you choose the right loan for your business.

How much money do I need?
How much you borrow will directly impact the repayment terms and rate on your loan. But, it is extremely important that you borrow what you need because getting a second loan may be more difficult.

Do I want flexibility or fixed terms?
Let’s say you plan to remodel your office. Using a fixed-term business loan makes sense because you can use your contractor’s bid to provide exactly how much you’ll need to borrow from your lender. You can easily budget your repayment amount because it stays the same from month to month. Fixed-term business loans are great for things like equipment upgrades, cash flow assistance, buying a vehicle and start-up costs.

On the other hand, if you’re in need of cash to make computer upgrades or market your business, a business credit card is an excellent option to consider. You’ll qualify for a credit limit to use at your discretion – you’ll only repay the amount you spend. Plus, some business credit cards offer rewards you can use to save money on future purchases.

Do I want a secured or unsecured loan?
Secured loans (loans secured by some type of asset or guarantee) usually offer a slightly lower rate than an unsecured loan (such as a credit card). Additionally, you may receive a more substantial loan amount with a secured loan than an unsecured loan. But, if you need quick cash, an unsecured loan may be a better option to consider as you can typically get funds within three days of your approval.

What lender should I use?
It’s best to choose a lender you trust, such as Pinnacle Bank. But, do your research and ask questions. Read through the available loan terms offered by the lenders you’re considering. If you have any questions about the business loans offered by Pinnacle Bank, give us a call at 877-759-7939.

Learn more about the business loans available at Pinnacle Bank here. https://www.pinnaclebank.com/business-banking/business-loans/

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Blog Business Managing Your Business

Ways Your Business Can “Pay It Forward”

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During this time of year, we tend to think more about others. We may give to a charity or donate our time to help others enjoy the holidays. We give to others because we can, without any expectation of getting something in return. As a business owner, you have the opportunity to “pay it forward” in your community not only during the holidays but throughout the year. 

Let’s take a look at some ways you can “pay it forward” in your community:

  • Sponsor a youth sports team or local event.
  • Partner with a charity that fits with your mission – let your customers or employees help you choose the right cause.
  • Host an entrepreneur group to share ideas and assist other business owners in your local area.
  • Create a local guide for newly relocated people to help them feel welcome in your area.
  • Donate unused or lightly used equipment or supplies to local libraries, schools or businesses.
  • Speak at a school or other educational event.
  • Do pro bono work for those in your area who may not be able to afford your services.
  • Start a scholarship program. 
  • Get involved in the annual “Pay It Forward Day” in some way (usually held in April of each year).

What should you look for when paying it forward as a business?

All of these ideas are things you may be able to implement in your business. But which is the right fit for you? Consider the following as you decide how to pay it forward in your community: 

  • Be sure whatever you do aligns with your company’s core values and mission.
  • Make participation fun and engaging (maybe even competitive) for your employees so they’ll want to get involved.
  • Use your existing skillset to make a difference wherever you are. 
  • Contribute to your local business community – buy local when you can.

Whether you donate your money or time, paying it forward in your community is beneficial for you and your company – the possibilities are endless as to the difference you can make. Aside from improving employee morale and unity, you may also find you’ll attract new and improved business because of the favorable publicity you’ll generate.

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Blog Personal Safety & Security

Online Safety Tips for the Holidays

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While all may be jolly and bright during the holidays, some criminals find it to be the perfect time to scam innocent victims. The Cybersecurity and Infrastructure Security Agency (CISA) provided the following tips to protect you and your business from holiday scams and malicious cyber campaigns.

When using email – 

  • Don’t open emails or ecards from people you don’t know.
  • Don’t open attachments or click on links from unsolicited emails. 
  • Don’t provide personal or financial information via email – legitimate business won’t solicit sensitive information in this way.  

When shopping online – 

  • Shop with reputable, established vendors – don’t be tricked by someone claiming to be something they aren’t. 
  • Verify a charity’s authenticity before making any online donations.
  • Take note of the phone number and physical address of any online merchant you use in case there’s a problem with your transaction or bill. 
  • Make sure the information you provide online to make a purchase is encrypted – either “https:” or a padlock icon will be located in the URL. Please note that some cybercriminals will create a fake padlock icon to trick you, so make sure the icon is in the appropriate place for your browser. 
  • Use a low-limit credit card to make online purchases as you’ll get more fraud protection than paying with a debit card and limit the exposure of the funds in your checking account. 
  • Consider using a payment gateway (PayPal, Google Wallet or Apple Pay) to make purchases – you’ll only enter your credit card information once and the online merchant will never see it.
  • Use only reputable shopping apps and check your settings to ensure your data is secure. 
  • Review your statements regularly and keep copies of your receipts or confirmation pages. If there is any discrepancy, report it to your financial institution immediately.

If you’ve found an unauthorized transaction in any of your Pinnacle Bank accounts, please contact us immediately at 877-759-7939.

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Blog Business Managing Your Business

The Future of Digital Payments 

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We are living in an increasingly digital world. Transactions that took hours to complete a few decades ago can now be wrapped up in minutes. This trend has resulted in tremendous growth that is driven by money transfers, cross-border remittances and digital payments.

There are new challenges and realities now that we have a worldwide digital payment market:

  • We must serve a global consumer base.
  • We must negotiate different regulatory and licensing bodies across the world.
  • We must educate our consumers on the safety of digital payments.

What can you do to prepare your business?

Embrace Underserved Consumers: A Global Opportunity

Even if consumers don’t have access to a computer — and let’s face it, most of them do via work, libraries, etc. — most have a smartphone to log on to the internet. Researchers predict that by 2025, underserved and underdeveloped markets will grow 75% faster than already developed markets. Business owners would be crazy not to take advantage of this opportunity!

Serving a different community will, of course, mean that you will have to make some changes to your business. It will also mean that you must get creative to come up with innovative solutions for your new consumers. Thinking globally means many more opportunities to make a profit.

As you begin to plan your next quarter, or indeed start planning for 2020, try thinking about your business with a global mindset. What new challenges might arise? How will you acquire new customers and then give them what they want? How can you use an already established product in a new and useful way?

Compliance is an Investment (Not an expense)

OK, so you decide to enter the global arena — now it’s time to invest in your company’s licensing and regulatory compliance. Yes, licensing can take up time, resources and money, but it’s worth it if it means access to a broader customer base that needs your expertise and products.

Each state or country has different rules and regulations. For best results, invest in a full-time compliance team. Your area of proficiency is probably not dealing with regulatory agencies, so hire someone who knows what they’re doing. It will speed up the process so you can move forward with expanding your business.

We all know what happens when Facebook is down or Twitter crashes — people panic. Now, imagine that your business was somehow tied to these websites. Not good. If your products or services are dependent upon someone else’s technology, then you are not in control. What’s the solution? Invest in your own flexible platform. Third-party products and services can be integrated into your platform if need be, but don’t forget to build to meet the needs of the global user. When other companies are scrambling because they are at the mercy of their tech suppliers, you will have your custom payment platform ready to go!

Being flexible and ready for the changes that the global market will inevitably present doesn’t make your business invincible, but it does mean that you are prepared to pivot and adapt when you need to.

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Blog Business Growth & Capital Managing Your Business

How to Grow Your Small Business while Preserving Company Culture

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As your business grows, it’s crucial to preserve the elements of your company culture that you and your employees value. Here are some ideas of how you can do this.

Stick to Your Values

Write down your company values and make sure each employee has a copy of them. They should also be displayed prominently throughout your business location. Then, identify a few long-time key staff members who “live” or personify those values. These key people are your “culture champions,” and they can be helpful in multiple areas — from hiring to sounding the alarm if the business goes off course. These champions should be very visible within your organization so that everyone knows that the way these people do business is the way everyone should do business. However, this doesn’t mean that everyone has to be clones of everyone else! Rather, there are essential values within your business that everyone should uphold.

Hiring is Incredibly Important

As businesses grow, hiring can become a real challenge. In a rush to get more people on your team, you may hire someone who just doesn’t “fit.” It’s important not to compromise on your culture and values in a rush to fill new roles. If necessary, you can outsource part of the hiring process to a recruiter who can narrow down the field for you, and then you and your team can make the final hiring decisions.

Stay Interviews

You’ve likely heard of exit interviews, but how many “stay” interviews have you conducted? None? Well, it’s time to start! Staff turnover is detrimental to business success. It costs time and money, and you often lose a great employee. But if you are conducting stay interviews at least once a year, you can reduce employee turnover and even boost employee happiness. Check-ins are used to gather feedback on areas that can be improved, and they also show your employees that it’s important to you that their voices be heard. Better still, stay interviews can improve the employee experience over time because issues get resolved more quickly and with less drama.

Feeling Like a Team

Another reason that company culture is so important is camaraderie. Staff members who feel connected to their co-workers and feel like everyone is working for the good of the business are much more likely to plan a long-term future with the company.

Establishing a great workplace early on and then continuing to put your culture first as the company grows will help you avoid the growing pains that many businesses fail to navigate. 

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Blog Business Personal

Where Do Recessions Come From?

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Recession. Even the word can be scary to some people. But what if the mystery was taken out of how recessions happen? The causes of a recession are easy to identify and are anything but random.

The Credit Cycle

Scenario:

A person makes $100,000 a year and needs a loan.

They approach a bank that loans them $10,000.

That money then goes into the economy and becomes someone else’s $110,000 income.

Then, the person who makes $110,000 a year and needs a loan.

They approach a bank that loans them $20,000.

That money then goes into the economy and becomes someone else’s $130,000 income.

Then the person who is making $130,000 a year needs a loan … you get the picture.

At some point, all of this borrowing and lending will hit a natural limit. That’s when the Federal Reserve steps in. The Federal Reserve tracks this cycle. It raises interest rates when they become too low, when people and banks are being too aggressive with borrowing and loaning, and when people are receiving loans who shouldn’t be.

Higher interest rates cause higher payments on debt that many people cannot afford. Banks will no longer give as many loans because people will no longer qualify at the higher interest rate. In a nutshell, higher interest rates mean that a much smaller pool of people can borrow money.

Being rejected for a loan is a big problem for people who now can’t borrow to refinance something that they already spent money on. In some cases, people will lose their homes, have to file for bankruptcy, etc. These people are no longer spending money and contributing to the economy on the same scale as they did in the past.

At this point, the cycle begins to go the other way: 

Someone’s $140,000 a year job disappears, and there’s only a $125,000 job to replace it. Then that job disappears, and there’s only a $110,000 job in its place, and so on.

People who lose their jobs and can’t find another one spend less money, which means someone else isn’t making their usual income. Eventually, they too may lose their job or go out of business. The cycle winds down until we end up in a recession

Recession and the Stock Market

A recession has a massive impact on the stock market. Why? A recession winds down both personal and corporate income.

When people are buying less, then there is less revenue in corporations that haven’t yet adjusted their cost structure. These corporations stop making money. Some even fail and go bankrupt.

When growth is once again under control, the Federal Reserve lowers interest rates. And the cycle starts over! 

What This Means For You

First, you can take comfort that Pinnacle Bank is a responsible and knowledgeable bank. We pride ourselves on the guidance we give to everyone who banks with us and encourage our patrons to make conscientious decisions with their money.

Finally, a recession can mean an opportunity to buy stock “on sale.” When the market rebounds, your investments will become profitable.

Categories
Blog Business Fraud & Security

Three Tips to Keep Your Remote Employees Safe from Cyberattacks 

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Smartphones, laptops and tablets are especially susceptible to cybercriminals and can endanger company security. Arm your staff with information on how they can keep online data safe from cybercriminals. 

1. Public Unsecured Wi-Fi Networks

Connecting to public Wi-Fi on company-owned devices when working remotely is hazardous to company security for several reasons.

Public Wi-Fi Networks

Public Wi-Fi networks are a common way hackers acquire information. These networks are usually not secure, making it easy for hackers to intercept data, log-in credentials and other sensitive information. Hackers also use unsecured Wi-Fi networks to spoof a public Wi-Fi network and disperse malware. 

Wi-Fi Phishing

Wi-Fi phishing is when someone creates a web page that perfectly mimics an actual page on a website. A good example would be your company’s email sign-in page. Your employee lands on this legitimate-looking page and types in their email and password, which are now in the hands of the hacker. 

Home Office Wi-Fi Network

Your own home office Wi-Fi may put your company security in danger! An unsecured home office Wi-Fi network can be accessed through IP-enabled devices like thermostats, security cameras, wireless video equipment, etc. Unsecured IP-enabled devices are easy to hack. Once the intruder has access, they can breach the network and gain access to both your company and personal sensitive data. 

Solution: Use a Virtual Private Network (VPN)

Require remote employees to use a virtual private network (VPN). A VPN enables users to securely connect to your business, even if the available Wi-Fi network is questionable. Still prefer that your employees forgo using Wi-Fi connections at all? You can provide them with a personal hotspot.

2. Hold Regular Cybersecurity Training

Employees are likely to encounter a fake web page, infected attachment or malicious email at some point while working for you. Whether or not they engage with malicious content is dependent upon their knowledge of such security threats. Regular employee trainings that show examples of imposter pages and phishing emails can drastically reduce security risk. Teach your employees how to spot a scam and bring them up to date on the newest cybersecurity threats. If you don’t have someone on staff who is qualified to provide this type of training, look for an affordable outside expert who can. 

3. Secure Local Resources 

Local resources such as operating systems, network firewalls, software and applications must be kept up to date to protect sensitive information such as customer data, administrator credentials and intellectual property.

Steps to Secure Local Resources: 

  • Ensure all company-owned devices have the most current software versions. 
  • Set up automatic software updates. 
  • Preinstall malware scanners and a VPN on employee-issued devices.  
  • Enable local firewalls on all company-owned devices. 
  • Provide licenses for anti-virus and VPN software to employees who use their personal devices for work.

Working remotely offers flexibility and many opportunities for both businesses and their employees. With some planning, you can ensure that your cyber information is safe so that your staff can enjoy the benefits of working remotely. 

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Blog Business Growth & Capital Managing Your Business

Startup Founders Are Often the Reason for Failure

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Many people think that most startups fail because of a shortage of funds, and for some, this is true. But often there is a more complicated problem: the founder. In this article, we will address common startup issues that arise because of faulty leadership. 

1. Dictatorial Leader Doesn’t Listen to the Team

Startup founders tend to be charismatic, ambitious and driven by their vision — all qualities needed to motivate people to buy in to their new business idea. Very often, it is the founder’s drive to make their idea a reality that makes a startup successful. But what happens when those qualities get taken to the extreme? Startup leaders who become dictatorial will set arbitrary goals and ignore team input, realistic time frames, technical challenges and costs to the detriment of the long-term success of the company. 

2. Advisors are Chosen for Reasons Other Than Experience or Expertise 

Many founders of startups surround themselves with friends rather than people who have expertise and experience in the field. They naturally gravitate toward similar personalities to their own and choose business partners who will not disagree with the direction they want to take the company. This means that when things start to go pear-shaped with the company, there is no one around to speak up and recommend a new direction. 

3. Planning Isn’t a Priority for the Founder 

Founders are often “idea” people. They get 50 ideas a day and are tempted to try at least 49 of them. This type of creative personality is excellent at coming up with ideas but, unfortunately, not great at making the ideas a reality. Why? Because developing an idea takes a great deal of planning and patience — and to make one idea work, the founder must give up the other 50 ideas they had that day. Startups that succeed usually have a creative ideas person who is backed by a highly organized team of people who excel at planning, making priorities and staying on course. 

4. Weekly Staff Meetings or Crisis Sessions?

Ideally, weekly staff meetings are a time to update the team on project statuses and plan for the next quarter. Instead, a dictatorial founder turns each meeting into a crisis session: What is going wrong? What could move faster? Why isn’t the project making more money? What should be an informative, calm meeting becomes an emotional deluge from the founder, which overwhelms the entire team.

5. The Founder Talks More Than They Listen

Successful startups have leaders who listen. A founder who always talks and gives their own opinion is a leader who is not learning from their team. These team members quickly become disgruntled because they feel unappreciated and undervalued.

6. The Leader Becomes Frustrated and Paranoid Over Time

When problems in the startup become too obvious to ignore, the founder may become more personal in their criticisms of staff members and advisors. Someone must be blamed, and since the leader won’t accept responsibility, then liability is passed to the staff. When this happens, staff commitment disintegrates, and people leave the company. Most who stay are only interested in collecting their paychecks. When this happens, the startup is destined for failure. 

Most founders begin their business with visions of being a great leader, but pressure, poor planning and limited resources can take its toll. If you’re reading this and recognize some of these traits in yourself, consider yourself lucky! Understanding your own strengths and weaknesses is a crucial first step to becoming a great leader.

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Blog Building & Managing Credit Business

7 Tips to Improve Your Credit Score

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Would you like to improve your credit score but don’t know where to begin? We’ve got seven tips to get you started. 

Know Your Score 

The first step to improving your credit score is to know your credit score. Did you know that you can get a free copy of your credit report every year? Just go to Annual Credit Report and request your report. Once you have your report, read it carefully and make sure everything is correct. 

Rent and Build Credit 

VantageScore’s scoring model now weighs rent and utility payment records when calculating credit scores. 

Keep Balances Low On Credit Cards 

Try to limit your charges to 30% or less of your card’s limit to improve your score. 

Set Up Automatic Bill Pay

It’s a fact: If you consistently pay your bills on time, the better your score. Why? Payment history makes up 35% of your FICO credit score and 32% of your VantageScore score. Take the guesswork out of paying bills on time and set up automatic bill pay.

Keep Old Accounts Open

Strange as it may seem, closing old accounts doesn’t help your credit score. In fact, it can damage it. So go ahead and pay everything off but keep the accounts open. 

Open New Credit Accounts Sparingly 

You’re at the checkout counter, and a retailer says you can save 25% on your purchase if you open a credit card with them. Sounds like a great deal, right? Sometimes it is, but most times it isn’t. When opening a new credit account, you should compare rates and fees from various lenders. Get the best deal possible — not the one presented to you at checkout. 

Talk to a Credit Counselor

If your credit score is lower than you would like or if you need helpful advice, a nonprofit credit counseling service can be beneficial. These services can teach you to manage your debt and plan for your future — and getting help won’t hurt your credit score. Contact the National Foundation for Consumer Creditfor more information on debt management and improving your credit score.