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Blog Business Growth & Capital

Save Without Really Trying

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Whether you’re a small business trying to save for a large future expense or a parent trying to save for when your kids reach college age, it’s the same dilemma. How can you put money away when new expenses keep coming up? That’s especially difficult for small business owners because it’s so hard to predict when business might slow down or an unexpected expense may pop up. Your natural inclination is to keep as much cash at hand as possible. Here are 4 reasons why you should fight your natural inclination and set up automatic savings using direct deposit.

What you don’t see, you don’t miss.

You’ve heard the saying “Out of sight, out of mind”, right? Well, it’s true. Once you make the process of transferring money from income into savings invisible, you won’t even think about it.

It’s easier to leave it in.

When you have money in your company’s checking account, it’s all too easy to spend it. With savings, it’s all too easy to leave it in. There’s something about the label ‘Savings’ that just makes you want to leave it alone.

The money grows faster than you think.

It’s amazing how fast things grow when you don’t see them all the time. It’s like the kids at an annual family reunion. You’re always surprised at how big they’ve gotten.

You can save for multiple things.

You can direct the deposit to more than one savings account, depending on what you’re saving for, like splitting the deposit into both a savings and a retirement account. Other savings goals can include emergencies, education and property. Or, just a rainy day. Happy saving.

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Blog Business Growth & Capital Managing Your Business

5 Tips for Startup Success

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5 Tips for Startup Success

Starting a small business isn’t easy, and there’s a different set of challenges for every type of startup. There’s a lot in common, as well. Which is why we’ve compiled a list of tips from those who’ve been there to help you learn from their pitfalls and benefit from their smart moves.

Get help, especially when it’s free.

As a startup, there are a lot of things you’ll have to pay for, but you’ll find that help often comes free. So, when someone offers to help, or give advice, take it. In a businessinsider.com article by Shana Lebowitz entitled “The best advice for entrepreneurs, from 16 real people who started their own companies” Naa-Sakle Akuete, founder and CEO of Eu’Genia Shea, a line of high-quality shea-butter, says that “When I first started, if someone offered to help me —I would assume they were just being polite and say ‘no thanks’. I’ve realized though, that most people don’t offer to help you unless they mean it.”

Hire people who are better than you.

You will be an expert at many aspects of your business. But not all. That’s why it’s so important to hire people who can do certain tasks better than you can. That way, you can completely rely on them. Plus, having a diversity of backgrounds will add a depth of understanding to your business, and come in really handy as you grow.

Keep your other income rolling in until you’re ready.

Just because you’re going out on your own doesn’t mean you have to rely completely on your new venture. At least, not at first.  Many startups were founded by people with day jobs, like Sara Blakely, founder of Spanx. In an article in thehartford.com, entitled “7 Tips From Successful Small Business Owners”, Kelly Spors quotes Spanx founder Sara Blakely as saying that keeping her sales job for two more years while she started her business helped give her the support she needed to be ready to go on her own. Blakely says, “I quit Danka and two and a half weeks later I was on the Oprah Winfrey Show.”

Stay focused. 

It’s really easy to get distracted when you’re starting a business, especially when you start to succeed. There’s the constant allure of going off in multiple directions and expanding your business. Or attempting to run two businesses at once. But the key to success is being able to focus completely on the one business and achieving success before you seek other opportunities. As quoted by Kelly Spors in “7 Tips From Successful Small Business Owners” for thehartford.com, CEO of AudienceBloom, Jayson DeMers says he “learned that a successful venture requires 100 percent attention, focus, and effort. Secondary ventures need a full-time manager or else they’ll just distract you and derail your existing efforts if you aren’t careful.”

Keep your overhead down.

With startups there are always unexpected expenses. By eliminating unnecessary costs and keeping your overhead as low as possible, you’ll be better prepared to meet financial challenges. Do you really need that coffee service, that extra office space or all that paper? Does your company credit card give you the best benefits? The best way to keep your overhead low is to constantly re-evaluate all the little things.

Fuel it with love and a touch of fun.

Startups require so much effort, especially in the beginning, that you need to enjoy what you’re doing to be successful. You also need to keep your staff motivated, especially through the lean times. That’s why so many entrepreneurs advise business plans that focus on what you’re passionate about. You really need to love it to put that much time into it. So, cut loose every once in a while. In her article “20 tips for startup success”, Mary Juetten, contributor to Forbes.com says “It’s alright to have fun on the job so long as the work is getting done.”

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Blog Business Cash Management Managing Your Business

5 Ways to Optimize Your Small Business Cash Flow

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Keeping your cash flow rolling along is essential for running a small business and for your own peace of mind. You’d think it would be simple. Just make sure you have more coming in than going out. But with the ups and downs of business, it takes a smart strategy, planning and the discipline to monitor your finances on a regular basis. Here are a few tips that can help you maintain a steadier cash flow.

Negotiate payment.

It’s your business, so you have the power to negotiate. Make sure your customers are paying as fast or better than the terms you have with your creditors.  How do you get your customers to pay even faster? Consider discounts for early payment and penalties for late payments. Then make sure you follow up quickly on past due accounts. The best way to manage cash flow is to actually manage it.

Think ahead.

You can’t really plan ahead too much. Keeping your eye on the future lets you be ready for dips in revenue. So, plan your cash needs for next quarter, next year and years ahead. Then set weekly check-ins to make sure you stay on track. That way, if you see a problem coming, you can manage it before it affects your cash flow too seriously. This also allows you to better budget for expenses and invest with greater confidence.

Don’t rely too much on any one customer.

You’ve heard the expression ‘Don’t put all your eggs in one basket’. It’s a good one. There’s a lot of wisdom in not relying on one single source too much for revenue, but diversifying among multiple customers. That way, if one goes away, you’ll still be okay. Also, try to sell across a variety of platforms. With more variety, you’ll also see steadier cash flow

Make paying more convenient.

The easier it is to pay you, the more likely it is that you’ll get paid on time. There are a lot of ways to receive payment these days; credit cards, B2B payment gateways, mobile, PayPal. Venmo. Just choose the options that work best for your customers with the lowest fees for you.

Don’t overhire.

Nothing costs more than people, especially if those people aren’t staying busy. It’s best to do more with less for a while, even if everyone has to work a bit harder. Find ways to keep your staff motivated while your business builds and reward them for their loyalty. Better to be half a person short than half a person over budget.

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Blog Home Buying & Refinancing Personal

Choosing a Lender: What You Need to Know

Congratulations! You’ve found the home of your dreams, and now it’s time to choose a lender. Follow these steps to get the best deal on your mortgage.

Gather Essential Information

In order to choose the right mortgage for you and your family, you must know the basics. Become familiar with loan terms, interest rates, and any extra fees incurred when buying a home. 

Access Your Finances

Before you apply for a home loan, determine what you can afford. Essential elements to consider are how much debt you have, what your credit score is, and how much of a down payment you plan to make.

Organize Your Documents

You will need the following when applying for a loan:

  • Tax returns
  • Recent financial statements
  • Pay stubs
  • Additional monthly payments such as credit cards, car loans, student loans, etc.
  • Additional information that may help your banker positively evaluate your credit request – such as proof of other income

If you’ve misplaced any of the above documents, you can access much of it online.

Trust is Key

Choosing a lender is a huge decision. Talk to family and friends and get recommendations. Research potential lenders and read online reviews. Get in touch with the Better Business Bureau and inquire about specific candidates. Consider choosing a fully regulated bank which is required to operate under a high level of regulatory supervision. And be sure to read between the lines of advertising, salespeople, telemarketers, etc. If it sounds too good to be true, it is.

Compare Quotes

Find an online calculator (link: http://www.aba.com/aba/static/calculators.htm) that will help you determine which loan is the best value. Interest rates, closing fees, commissions – all of these add up.

Don’t be afraid to ask questions.

You’re making an important decision when choosing a lender. Don’t hesitate to get all the information you need, and when you are unclear on details, ask for clarification.

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Blog Business Growth & Capital Managing Your Business

Is Rest the Key to Business Success?

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Working harder, longer, faster gets the best results, right? Well, maybe not. After all, there’s a reason for the old saying, “All work and no play makes Jack a dull boy.” With increasing numbers of business owners and entrepreneurs reporting exhaustion, burnout, and crippling anxiety, people are beginning to think that there must be a better way. Turns out, there is. Being busy and being productive are two entirely different things. Being busy implies that you are filling the hours of the day with work. Being productive means that the work you’re doing has an impact. And to be productive, you must be well-rested.

Sleep

A recent study compared the effects of sleep deprivation to those of drunk driving. Yikes.  A good night’s sleep, or even a quick power nap, could be key to thinking clearly and efficiently at work.

Exercise

But rest isn’t all about sleeping. Restorative activities like hiking, walking, biking, and yoga are all incredible forms of rest. And if you can go outside to exercise, then that’s even better. Business owners spend far too much time indoors staring at their computer screens. Wide open skies, fresh air, and nature can do wonders for recharging your brain and body. Just be sure to bring along your phone or a small pad of paper and a pen – you’ll be amazed at how some of your best ideas will emerge when you’re moving your body and giving your brain a rest.

Make Time for Reflection

Built into every workday should be time to sit quietly and reflect, read, strategize, etc. Close your laptop, turn off your phone’s ringer, put a ‘Do Not Disturb’ sign on your office door, and give your mind the time and space to reflect. Does this sound like a waste of precious time? Bill Gates, Mark Zuckerberg, and Tim Ferriss sometimes take a full week of their time to reflect quietly.

Embrace the Break

Does all this sound impossible? Would you like to try doing less and resting more, but you can’t conceive of how to begin? Start small. Take small breaks throughout your day and set alarms on your phone so that you’re sure to stop what you’re doing to take a break. Can’t go for a long walk outside? Take a stroll around your office. Have coffee with a friend or colleague and don’t talk about work. Do an online search for ‘desk yoga’ or ‘stretches you can do in the office’ and incorporate these movements into your day. As you get comfortable with smaller breaks and see the positive change happening in your body and mind, you will naturally begin to look for other ways to include more rest in your day.

Not convinced? We highly recommend the book “Rest: Why You Get More Done When You Work Less” by Alex Soojung-Kim Pang. The book is well researched and written, and it gives examples of how some of the greatest minds and most accomplished people of our time and in history embraced resting.

Categories
Blog Business Fraud & Security

Protect Your Small Business Account

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Corporate Account Takeover – Business Identity Theft – Commercial Account Fraud – these are all different terms that add up to the same thing: cyberthieves gaining control of a business’ finances by stealing employee passwords and other valid credentials and then using the information to steal customer information, transfer funds from the company, make unauthorized transactions, etc. Scary.

So how do you protect your business, and in turn your customer’s information, from fraud?

Make sure your online activities are secure:

Never use unprotected internet connections. If your server warns you that a website is compromised in any way, leave it immediately. An easy way to tell if a website is secure is to look at the web address. There should be an ‘s’ in ‘https’ – if there isn’t an ‘s,’ the website is not secure. Keep updated antivirus software on your computer and always encrypt sensitive information.

Use complex passwords:

Passwords should be complex with a mix of small and capitalized letters, numbers, and symbols. By using common passwords like your birthday, your children’s or pet’s names, or even ‘password’ and ‘123password’, you are setting out the welcome mat for your account to be hacked.

Partner with Pinnacle Bank:

We can help you safeguard your account. If you’re unsure that your bank account is safe from cyber thieves, talk to us! We’re happy to guide and help you in any way we can.

Find out what you don’t know:

Your account agreement details what you are responsible for concerning security measures that you must take. If you don’t implement these security safeguards, you could be liable for losses incurred during a takeover. Don’t know what you don’t know? Pick up the phone or make an appointment to speak with one of our staff. 

Employee Education:

Chances are, one of your employees will be the first to suspect that your account has been compromised, but they must know the warning signs before they can spot potential fraud. Be sure your employees have the tools they need, as well as safe practices and how to respond if they suspect account fraud.

Be Aware of Suspicious Activity and React Immediately:

Beware of strange emails, phone calls, pop-ups, etc. Never give your password information, social security number, and other valuable information to someone via email or phone. If you suspect that your computer or accounts have been violated, cease all online activity and contact Pinnacle Bank for further instruction. And be sure to keep thorough records of what happened.

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General News

Available Now for Treasury Management Customers!

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If you are a Treasury Management customer, a new statement is coming soon in addition to the monthly account statement. It is set-up to show your products, services, fees and balances in a clearly understandable presentation. If you have any questions, please feel free to call your Electronic Banking Support Team at 877-759-7939.

If your business is not a Treasury Management customer but you are interested in learning about products to assist you in running your business more efficiently, learn more here or contact a member of our Treasury Management Team listed on that page.

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Blog Business Cash Management Growth & Capital Personal Ready for Retirement Saving & Budgeting

Financial Podcasts Are A Wise Investment

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Learning about money has to be hard and boring, right? It has to take a long time, and it’s never entertaining. Wrong! Financial podcasts are here to change the way you think about financial education. 

And now is the perfect time of year to find a few new podcasts to add to your playlists. Apple has its ‘best of’ lists out, and lots of other critics are weighing in with their favorite shows. From true crime to sports, to comedy, there are so many podcasts out there to entertain and inform. 

Here are some of our recommended financial podcasts. Make the commute to work a productive trip by giving these shows a listen!

Stacking Benjamins: (https://www.stackingbenjamins.com/about/) An award-winning podcast that focuses on helping listeners build wealth

What Works: (https://cocommercial.co/whatworks/) A podcast about what works to run, manage, and grow a small business today.

So Money: (http://podcast.farnoosh.tv/) A podcast for entrepreneurs who want to take their business to the next level 

The Side Hustle Show: (https://www.sidehustlenation.com/side-hustle-show/) Want to create multiple income streams? This podcast is for you! 

Radical Personal Finance: (https://radicalpersonalfinance.com/) A masterclass on how to achieve financial freedom.

Smart Passive Income: (https://www.smartpassiveincome.com/podcasts/) It’s in the title! This podcast is all about creating passive income. 

Money for the Rest of Us: (https://moneyfortherestofus.com/) Improve your “retirement IQ” by learning about wealth building and investing.

Afford Anything: (http://podcast.affordanything.com/) This podcast will help you to make smarter decisions about your money, time, and life.

Listen, Money Matters: (https://www.listenmoneymatters.com/show/) Their tagline is: This is not your father’s boring money show. Enough said! 

ChooseFI: (https://www.choosefi.com/category/podcast-episodes/) Design a life you love by reducing expenses, eliminating debt, optimizing credit card rewards, and more.

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Blog Business Managing Your Business

3 Fears That Plague Most Entrepreneurs

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To overcome our fears, we must face them head on and find ways to move past them. Because entrepreneurs face common challenges, they also can suffer from similar fears. The 3 following fears will be familiar to most entrepreneurs and business owners. If you have fallen prey to any of these common fears, you can take comfort that other people have felt the same way, and still found a path to success. 

1. Fear of change

Change is unavoidable. The very nature of life is change and business and technology are now changing faster than ever. How can you find ways to embrace change in your business? Does a new innovation or advancement frighten you? Read about it, take a class online or in person. Have confidence that you have the flexibility to meet and embrace change. 

2. Fear of failure

If you are faced with a challenge, instead of giving up because you’re afraid you will fail, try the following exercise:

  • Ask yourself what will happen if you succeed. 
  • Next, ask yourself what will happen if you fail. 
  • Finally, ask yourself how you will feel in 5 years’ time if you don’t take advantage of the opportunity. 

If you decide to move forward, make a plan to prepare yourself if things do go sideways. Instead of avoiding fear, face it, plan, and prepare. 

3. Fear that you’re not good enough

At the root of many fears is self-doubt. I’m not good enough. I’m not smart enough. I don’t have enough education. Why would people listen to me? This negative inner talk can be crippling. 

Stop harmful inner monologues by asserting the opposite. 

I’m not good enough becomes I am good enough.

Why would people listen to me? becomes People listen to me because I am an authority in my field. 

You don’t have to let anxiety and fear hold you back from achieving your business goals. Remember that fear feeds upon fear but backs down when directly confronted.

Categories
Blog Business Cash Management Managing Your Business

Get your Small-Business Finances Organized

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Owning and running a small business can be challenging. There are a million little things to take care of and lots of big things that cannot be ignored. We’ve brought together our 6 top tips to get your small-business finances organized. Follow these suggestions to gain peace-of-mind and to thrive in your business!

1.  Keep a Separate Bank Account

Congratulations! Your business is making money. Now it’s time to separate your business and personal finances. Why is it important to have separate accounts?
  • You appear far more professional to clients and customers when they make a check out to your business name rather than your personal name
  • It signals the IRS that you have a business rather than a hobby
  • It makes doing your taxes much easier. Your personal and business transactions will already be separate.
  • Should you be audited, providing a separate business statement and record provides a clear picture of your business finances.
  • Mixing your finances may result in missed tax deductions, and it will certainly cost you precious time.
  • It’s much easier to keep track of your expenses, cash flow, etc.

2.  Protect Your Business – And Yourself 

Did you know that establishing an LLC or an S-Corp allows you to separate your business identity and finances from your personal finances? This means that should a legal issue arise, your personal assets and property would not be liable. By protecting your business, you protect yourself.

3.  Track Your Income and Audit Your Expenses 

It’s important to know how much you make and how much you spend. There are many ways to track your income and expenses:
  • Spreadsheet
  • Online or phone apps
  • Invoicing or bookkeeping software
You can track your income and expenses daily, weekly, or monthly – whatever best suits you and your business. This is a great way to spot trouble areas in your finances.

4. Eliminate, or Cut Down, on Paper

There is nothing more unorganized than a giant stack of paper! Get rid of clutter by organizing and digitizing your important documents. Save documents digitally then store them. Some information can be kept on your computer or on a separate hard drive, while more important documents should be stored and protected by a third-party secure service. Some documents cannot be stored digitally. Be sure to keep these in a well-organized, fire-proof filing cabinet.

5. Decide How You Will Accept Payments

There are now more ways than ever to received payments, and you want to make it as easy as possible for your customers to pay you. Do you accept credit cards in person? How about online? Does it make sense to set up a PayPal or Venmo account to receive payments? Do you need to be able to accept payments on-the-go directly from your phone? These are all things to consider. Compare and choose the option(s) that have the lowest fees and the most ease for you and your clientele.

6. Put Finance Meetings on Your Calendar 

Many people are reluctant to look at the finances regularly, which only makes it more painful when they have to figure out what their financial situation is. Set a weekly meeting to go over your business finances. These meetings do not have to be long. In fact, they will likely shorten in length once you have a better idea of your financial situation. Once you have made weekly check-ins a habit, set up quarterly or bi-annual meetings with an accountant or tax professional to get an outside perspective on how your business is doing.