Lunch & learn maximize your biz relationships
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Lunch & learn maximize your biz relationships
- 1. How to MAXIMIZE your PROFESSIONAL BUSINESS RELATIONSHIPS Presented by⌠CPAâs: Chuck Fredrick, Sidny Zink, Coelene OâKane & John Lopez Firm Administrator: Kristi Cowham
- 2. Agenda & Focus Areas Accounting & Tax Services Legal Services Banking Services Financial Advisors Marketing Consultants
- 3. Accounting & Tax Services
- 4. Accounting & Tax Services What services are available⌠ď Organization and analysis of financial data ď IRS Compliance & Problem Resolution ď Help Understanding the Numbers
- 5. Accounting Services Bookkeepers vs. Accountants vs. Certified Public Accountants (CPA) ⢠Bookkeepers: Record financial transactions (data entry) ⢠Accountants: Create & understand reports from data entry (income statement & balance sheet), month-end & year-end journal entries ⢠CPA: CFO/Expert knowledge, exams, ongoing education, legally represent with IRS, perform/attest to audits/reviews, certify financial statements. What is the difference?
- 6. Accounting Services How to Choose the Right Professional ⢠Knows my business accounting rules ďź Construction: Tracking rev/expenses by the job ďź Nonprofit: Tracking rev/expenses by function ⢠Provides Payroll Services ⢠Provides 1099s on behalf of Business ⢠Produces Financial Statements ⢠Technology Savvy ⢠Familiar with various Accounting Software Packages ⢠May be Local or Remote ⢠COMPATIBLE WORKING STYLE
- 7. Accounting Services ACCOUNTING SERVICES are carried out based on an agreement for procedures based on your Individual Needs Audit, Review or Compilation ⢠Complete set of Financial Statements ⢠For Banking, Bonding, Internal Monthly Write Up ⢠Cash Receipts and Disbursements ⢠Bank Statements ⢠Payroll & Sales Tax Reports Specialized Services ⢠Controllership ⢠Fraud Investigations ⢠Receivership & Conservatorship
- 8. Tax Services
- 9. Tax Services Tax Prep. Company vs. Enrolled Agent vs. Certified Public Accountant What is the difference? ďś Now that you have a business, things get a lot more complex & you will need help. ďś There are different kinds of people who can help you & some big differences between a Tax Preparation Company, Enrolled Agent and CPA. ďś Understanding the differences will help you determine the best fit for your needs.
- 10. Tax Services Tax Preparation Company Non-certified tax preparation company ⢠Not qualified to represent individual or business in front of IRS. ⢠No additional accounting/tax planning services. ⢠Cannot handle financial audits or sign financial documents. ⢠Registered tax return preparer competency test, covers 1040 series forms & ethics. 120 questions, approximately 1 hr to complete.
- 11. Tax Services Enrolled Agent (EA) Federally licensed tax practitioner specializing in taxation only. ⢠No additional accounting or tax planning services. ⢠Pass a comprehensive exam on tax code, or work w/IRS for 5 yrs interpreting & applying tax code & regulations. ⢠Background check.
- 12. CPA: Certified Public Accountant A public accountant certified by a state examining board as having met the stateâs legal requirements. ⢠Perform every type of accounting, licensed to submit reports, tax planning services. ⢠Requires Bachelor of Accounting Degree ⢠Required work experience ⢠(1,800 hours, 1-3 years) ⢠Uniform CPA Exam & State licensure Tax Services ⢠4-part test: auditing, financial accounting, reporting, regulation, & biz environment. ⢠Further broken down into sub sections such as IT, business law, individual tax & finance ⢠Ongoing continuing education (80hrs/2yrs)
- 13. Tax Services How to Choose the Right Professional ⢠What niche markets do they specialize in? ďź Retail, Restaurant, Nonprofit, Construction, etc. Do they understand multi-state tax requirements? ⢠How do they bill for services & what is the applicable rate? ďź Hourly vs. flat rate ⢠Experience of tax professional ďź Individual vs. Tax Team ďź Variety of niche market knowledge
- 14. Tax Services Preparing For the Meeting What Information is Needed ⢠Collaborative mindset & open to advice. ⢠Accurate cash record (reconciled regularly). ⢠Investment & loan detail for the year. ⢠Purchases made with a credit card (same as cash). ⢠Profit and loss statement for the year â the more organized the better. ⢠Any capital expenditures made during the year.
- 15. Legal Assistance
- 16. Legal Assistance Needs Identification ⢠What are your needs? ⢠What are you looking for from this person? - Advice? - Guidance? - Legal Documents? ⢠Can you communicate well with this person? - Openly? - Freely? ⢠Do you like this person? ⢠Are they conveniently located?
- 17. Legal Assistance Types of Attorneys ⢠Contracts ⢠Law that governs oral & written agreements associated w/exchange of goods & services ⢠Real Estate ⢠Law that covers rights to possess, use & enjoy land & the permanent manmade additions to it ⢠Tax and licenses ⢠Registering your business for federal & state tax IDs & consequences of basic transactions in which you engage ⢠Intellectual property ⢠Property rights protected under federal/state Law, including copyrightable works, ideas, Discoveries, and inventions
- 18. Legal Assistance Questions to Ask When Interviewing Attorneys ď§ Are you experienced? ď§ Are you well-connected? ď§ Do you have other clients in my industry? ď§ Are you a good teacher? ď§ Are you a finder, a minder, or a grinder? ď§ Will you be flexible in your billing? ď§ Are you willing to collaborate with other members of my professional network?
- 19. Legal Assistance Preparing for the Meeting ⢠Be organized with your information ⢠Explain your business to them ⢠Communicate what you are doing before you do it ⢠Read your documents ⢠Assess the biggest risks ⢠New Business? ďź Collaborative approach involving attorney & accountant
- 20. Banking Services
- 21. Banking Services How To Get The Most Out Of Your Banking Relationship ⢠Finding the Right Banker ⢠Establish and Grow the Relationship
- 22. Finding the Right Banker ⢠Referrals â Which bank do they use? What has been their experience? Would they recommend their banker? ⢠Small Business Focus â Ask questions about the scope and type of work done on behalf of your bank for small businesses. ⢠Industry & Geography Banking Services
- 23. Banking Services Finding the Right Banker ⢠Introduce Yourself & Your Business â Allow time for him or her to get to know you and your business ⢠Use Your Bank For Regular Counsel â Ask him or her to review your business plan ⢠Taking Advantage of Products & Services â At least once a year, you should sit down with your banker to review the products youâre using
- 24. Banking Services Finding the Right Banker ⢠Banking is About More Than Credit â Your banker should be able to offer other cash management tools, online and mobile banking services, credit card processing, payroll management and other service ⢠Ongoing Evaluation â Evaluate these at least a few times a year with formal meetingsâŚeither with in-person or phone conversations.
- 25. Banking Services Establish and Grow the Relationship ⢠Communication â Be open in these communication opportunities to share concerns and expectations. This is also a platform to disclose all financial information, both good and bad, in a timely and consistent manner. ⢠Building Trust â Focus on building your banker into one of your strongest advocates ⢠Financial Preparation â Know your numbers and be prepared to support your sales forecast based on tangible information ⢠Strategic Initiatives â Reserve time at least once a year to have your banker join your companyâs leadership team to brainstorm ways in which the company can grow
- 26. Banking Services Establish and Grow the Relationship ⢠Downside contingency planning â Be prepared to show your banker the downside risk in your business, such as the loss of any key customers or a shift in product/service demand ⢠Succession planning â Build a succession plan that can be shared with your banker. The last thing your banker wants is a company solely dependent on one person running it ⢠Banking services â A win-win situation occurs when the bank is allowed to make money on your relationship and you feel that you are being treated fairly. Be ready to negotiate on bank services, as they are not free and you can drive a better deal with your banker by consolidating banking services into one bank.
- 27. Banking Services How to Get the ⢠Get to Know Your Banker ⢠Use them as a Sounding Board ⢠Communicate! Most Out of Your Relationship with Your Banker
- 29. Financial Advisors Types of Advisors Defined Registered Investment Advisor (RIA) Registered w/ SEC (Securities and Exchange Commission) or stateâs securities agency. Advise on investing in securities such as stocks, bonds, mutual funds, or exchange traded funds. Chartered Financial Consultant (ChFC) Complete CFP Core curriculum related to finance/investing, but not CFP exam, 3 yrs industry experience & passed exams on fundamentals of financial planning, including income tax, insurance, investment & estate planning. Certified Financial Planner (CFP) Comprehensive 10 hr board exam and several years experience. Advise on budgeting, goal setting, risk levels, types of investments, insurance, retirement plans, etc.
- 30. Get The Most Out Of Your Financial Advisor by: Knowing Important Tools Financial Advisors Vetting Your Advisor Making It a Collaboration
- 31. Financial Advisors Vetting Your Financial Advisor 4 Questions To Ask Your Potential Financial Advisor 1. What types of services do you provide? 2. What is your education, certifications and experience? 3. What do your clients say about you? 4. How are you compensated?
- 32. Financial Advisors Make It a Collaboration Tips For a Successful Relationship With Your Financial Advisor ⢠Trust ⢠Listen and ask questions ⢠Return your advisorâs phone calls ⢠Go to your review appointments ⢠Donât wait until a crisis
- 33. Financial Advisors Important Tools ⢠Technology â What kind does advisor utilize? ⢠Communication â Email vs. phone â What is your preference? ⢠Reports â What types will I receive? â How frequently?
- 34. Financial Advisors Preparing for the Meeting Establish Where You Are Now ď Current Spending Habits & Budget ď List of Assets with Approximate Values ď List of Liabilities
- 35. Financial Advisors Preparing for the Meeting Establish What You Want to Accomplish ď Short Term Goals ďź Cash Reserve, Car, House ď Long Term Goals ďź Life Insurance, Retirement, College Savings
- 36. Marketing
- 37. Marketing Consultant How to Choose the Right Professional ⢠What is their Experience & Expertise? â How recent and practical is it? ⢠What are their background & qualifications? ⢠How much do services cost? â How are they remunerated & why? â Do they receive any commissions, fees or kickbacks from any other party? ⢠On what principles does their business operate? ⢠What clients have they worked for?
- 38. Marketing Consultant Things to Know Before Your Meeting⌠⢠Truths ⢠Audience ⢠Resources ⢠Budget
- 39. Marketing Consultant Know Your Truths ⢠What is your Message? ⢠What is your Story? ⢠What is your Style? ⢠What are your Business Values? ⢠What is your Tag Line? ⢠What Products/Services do you offer? ⢠What Results are you aiming for?
- 40. Marketing Consultant Know & Understand Your Audience ⢠What target market are you currently serving? â Age, Sex, Income, Where do they Live, What are their Needs, Wants, Problem to solve, Values and Interests? â When do they want your product? ⢠Who do you wish to be expanding services to? ⢠What terms and phrases are commonly used by your prospective clients?
- 41. Marketing Consultant Know Your Resources Internal Resources Current Marketing Special Offers Past Marketing External Resources Needed Deadlines
- 42. Marketing Consultant Know Your Budget ⢠What amount of do you allocate to marketing? ď 30% of your cost is expected for the creation of your message, brochures, design, etc. ď 70% of your cost is expected for the distribution of it. ⢠If you have $500 to distribute a newsletter ⢠Anticipate your need of $150 for the content design and $350 for the printing & mailing of the newsletter
- 43. Professional Relationships MAXIMIZE Your Professional Relationships ⢠Find Someone You Like ⢠Communicate & Collaborate - Regularly ⢠Consult & Seek Advice ⢠Discuss Short Term & Long Term Goals ⢠Utilize their Resources & Network ⢠Ask For and Provide Referrals
- 44. Collaboration & Teamwork COLLABORATION: Two or more people working together toward shared goals TEAMWORK: Coming together is a beginning, Keeping together is progress, Working together is a success.
- 45. Collaboration SHARE WORK TOGETHER COMMITTMENT POOL SHARED VISION RESOURCES COMMUNICATE ASK LISTEN RESOLVE COMPLEX ISSUES COLLABORATION
- 47. Contact Us Website www.durangocpas.com Phone 970-247-0506 Facebook https://www.facebook.com/FredrickZink CPAs Twitter (@durangocpas) https://twitter.com/durangocpas Linked In http://www.linkedin.com/company/fredr ickzink-&-associates-pc Chuck Fredrick cfredrick@durangocpas.com Sidny Zink szink@durangocpas.com Coelene OâKane cmokane@durangocpas.com John Lopez jopez@durangocpas.com Kristi Cowham kcowham@durangocpas.com
Hinweis der Redaktion
- Accounting â Sid, Tax Services & Legal â Chuck, Financial Advisors â Coelene, Business Bankers â John, Marketing - Kristi
- Decide what services are needed to select right person for the job. Not every consultant will be able to provide everything.
- Say? Desire to have taxes done compliant
- Communication: Contract Attorney is much more helpful if they assist you with the contract, rather than trying to deal with a legal problem where you used a form that you got online or from your buddy.
- Any good relationship starts with finding the right partner. This is especially true when business executives seek a beneficial relationship with a bank. -Banking relationships are unique in that bankers have a role to represent the bank as well as be an advocate for the client. You will want to select a banker who can successfully execute in both of these roles. -Your banker should ask questions to adequately understand your business objectives and to offer a customized suite of products and services to meet your business goals and objectives. -Business executives want someone who is not only experienced and knowledgeable about their business and industry but also has the analytical expertise to understand financials and knows how best to structure loan terms. Many business owners donât think to communicate with their bank on a regular basis, which means missing out on a valuable, free resource. Think of your banker for ideas, solutions for efficiency and a regular evaluation of your business and financial strategy. To take advantage of you bankerâs true role as a consultant, you must start by forming and maintaining a strong relationship. At the heart of this relationship should be trust and communication. Finding the Right Banker. You may already know and work with a banker you like and trust. Thatâs great â just review the other tips below to ensure you are getting the most out of that relationship. If you donât have that relationship already, take the time to find the bank and banker who will work best for you. Below are some tips to guide you through the process: ⢠Referrals. A great way to start your selection process is to ask fellow small business owners about their banking relationship. Which bank do they use? What has been their experience? Would they recommend their banker? Friends and colleagues are a great place to start. ⢠Small Business Focus. Ask questions about the scope and type of work done on behalf of your bank for small businesses. What type of clients do they have? What types of products and services do they offer to small businesses? What financial and banking challenges do they see small businesses facing and how do they help small businesses address these issues? ⢠Industry & Geography.Look for a banker who understands your industry and the geographic region of your business. Itâs important that your banker has a firm handle on the business and financial environment related to your industry and geography. ⢠Introduce Yourself & Your Business. The first step in using your banker as an adviser is allowing time for him or her to get to know you and your business. Even if youâre a long-time customer, invite your banker to your office or place of operation for a meeting. While itâs important for the bank to learn about your operations, over time, itâs necessary for you to return the favor. A good relationship banker will introduce you to managers and key decision-makers in the bank but if the introductions arenât offered, take the initiative and ask for a meeting. The more people you know at the bank, the more likely your company will become a household name. Youâll get to know who makes the decisions and how they are made. ⢠Use Your Bank For Regular Counsel. Like your lawyer or accountant, use your banker as a true consultant. Once youâve established a relationship and your banker understands your business, ask him or her to review your business plan. It is one of the best ways to utilize your bankâs resources. ⢠Taking Advantage of Products & Services. At least once a year, you should sit down with your banker to review the products youâre using. Perhaps youâre paying fees for a product you rarely use or technology has advanced and greater efficiency is available. A relationship review with your banker can help you tackle ways to save money and time. ⢠Banking is About More Than Credit. Donât lose sight of the fact that banks offer more than credit and loan options. Banks can help you with services to manage your funds and information to help you grow your business. Beyond a checking account, your banker should be able to offer other cash management tools, online and mobile banking services, credit card processing, payroll management and other services. Also, many banks now offer online tools and resources for your business beyond banking. These include tips and expert advice on everything from marketing and human resources to social media, fraud prevention and eCommerce. ⢠Ongoing Evaluation. Be sure you and your banker are both clear on your financial goals. Evaluate these at least a few times a year with formal meetings â either with in-person or phone conversations. Email is convenient, but a personal connection helps build a strong long-term connection. Most importantly, these check-ins provide a great opportunity to assess your needs and how these needs may have changed, then make any necessary adjustments. The right banking relationship can not only make your life easier, it can also help you effectively manage and grow your business. Itâs essential to find the right banker for your company. Then take the initiative to leverage and foster the relationship to get the most out of it.
- Any good relationship starts with finding the right partner. This is especially true when business executives seek a beneficial relationship with a bank. -Banking relationships are unique in that bankers have a role to represent the bank as well as be an advocate for the client. You will want to select a banker who can successfully execute in both of these roles. -Your banker should ask questions to adequately understand your business objectives and to offer a customized suite of products and services to meet your business goals and objectives. -Business executives want someone who is not only experienced and knowledgeable about their business and industry but also has the analytical expertise to understand financials and knows how best to structure loan terms. Many business owners donât think to communicate with their bank on a regular basis, which means missing out on a valuable, free resource. Think of your banker for ideas, solutions for efficiency and a regular evaluation of your business and financial strategy. To take advantage of you bankerâs true role as a consultant, you must start by forming and maintaining a strong relationship. At the heart of this relationship should be trust and communication. Finding the Right Banker. You may already know and work with a banker you like and trust. Thatâs great â just review the other tips below to ensure you are getting the most out of that relationship. If you donât have that relationship already, take the time to find the bank and banker who will work best for you. Below are some tips to guide you through the process: ⢠Referrals. A great way to start your selection process is to ask fellow small business owners about their banking relationship. Which bank do they use? What has been their experience? Would they recommend their banker? Friends and colleagues are a great place to start. ⢠Small Business Focus. Ask questions about the scope and type of work done on behalf of your bank for small businesses. What type of clients do they have? What types of products and services do they offer to small businesses? What financial and banking challenges do they see small businesses facing and how do they help small businesses address these issues? ⢠Industry & Geography.Look for a banker who understands your industry and the geographic region of your business. Itâs important that your banker has a firm handle on the business and financial environment related to your industry and geography. ⢠Introduce Yourself & Your Business. The first step in using your banker as an adviser is allowing time for him or her to get to know you and your business. Even if youâre a long-time customer, invite your banker to your office or place of operation for a meeting. While itâs important for the bank to learn about your operations, over time, itâs necessary for you to return the favor. A good relationship banker will introduce you to managers and key decision-makers in the bank but if the introductions arenât offered, take the initiative and ask for a meeting. The more people you know at the bank, the more likely your company will become a household name. Youâll get to know who makes the decisions and how they are made. ⢠Use Your Bank For Regular Counsel. Like your lawyer or accountant, use your banker as a true consultant. Once youâve established a relationship and your banker understands your business, ask him or her to review your business plan. It is one of the best ways to utilize your bankâs resources. ⢠Taking Advantage of Products & Services. At least once a year, you should sit down with your banker to review the products youâre using. Perhaps youâre paying fees for a product you rarely use or technology has advanced and greater efficiency is available. A relationship review with your banker can help you tackle ways to save money and time. ⢠Banking is About More Than Credit. Donât lose sight of the fact that banks offer more than credit and loan options. Banks can help you with services to manage your funds and information to help you grow your business. Beyond a checking account, your banker should be able to offer other cash management tools, online and mobile banking services, credit card processing, payroll management and other services. Also, many banks now offer online tools and resources for your business beyond banking. These include tips and expert advice on everything from marketing and human resources to social media, fraud prevention and eCommerce. ⢠Ongoing Evaluation. Be sure you and your banker are both clear on your financial goals. Evaluate these at least a few times a year with formal meetings â either with in-person or phone conversations. Email is convenient, but a personal connection helps build a strong long-term connection. Most importantly, these check-ins provide a great opportunity to assess your needs and how these needs may have changed, then make any necessary adjustments. The right banking relationship can not only make your life easier, it can also help you effectively manage and grow your business. Itâs essential to find the right banker for your company. Then take the initiative to leverage and foster the relationship to get the most out of it.
- Any good relationship starts with finding the right partner. This is especially true when business executives seek a beneficial relationship with a bank. -Banking relationships are unique in that bankers have a role to represent the bank as well as be an advocate for the client. You will want to select a banker who can successfully execute in both of these roles. -Your banker should ask questions to adequately understand your business objectives and to offer a customized suite of products and services to meet your business goals and objectives. -Business executives want someone who is not only experienced and knowledgeable about their business and industry but also has the analytical expertise to understand financials and knows how best to structure loan terms. Many business owners donât think to communicate with their bank on a regular basis, which means missing out on a valuable, free resource. Think of your banker for ideas, solutions for efficiency and a regular evaluation of your business and financial strategy. To take advantage of you bankerâs true role as a consultant, you must start by forming and maintaining a strong relationship. At the heart of this relationship should be trust and communication. Finding the Right Banker. You may already know and work with a banker you like and trust. Thatâs great â just review the other tips below to ensure you are getting the most out of that relationship. If you donât have that relationship already, take the time to find the bank and banker who will work best for you. Below are some tips to guide you through the process: ⢠Referrals. A great way to start your selection process is to ask fellow small business owners about their banking relationship. Which bank do they use? What has been their experience? Would they recommend their banker? Friends and colleagues are a great place to start. ⢠Small Business Focus. Ask questions about the scope and type of work done on behalf of your bank for small businesses. What type of clients do they have? What types of products and services do they offer to small businesses? What financial and banking challenges do they see small businesses facing and how do they help small businesses address these issues? ⢠Industry & Geography.Look for a banker who understands your industry and the geographic region of your business. Itâs important that your banker has a firm handle on the business and financial environment related to your industry and geography. ⢠Introduce Yourself & Your Business. The first step in using your banker as an adviser is allowing time for him or her to get to know you and your business. Even if youâre a long-time customer, invite your banker to your office or place of operation for a meeting. While itâs important for the bank to learn about your operations, over time, itâs necessary for you to return the favor. A good relationship banker will introduce you to managers and key decision-makers in the bank but if the introductions arenât offered, take the initiative and ask for a meeting. The more people you know at the bank, the more likely your company will become a household name. Youâll get to know who makes the decisions and how they are made. ⢠Use Your Bank For Regular Counsel. Like your lawyer or accountant, use your banker as a true consultant. Once youâve established a relationship and your banker understands your business, ask him or her to review your business plan. It is one of the best ways to utilize your bankâs resources. ⢠Taking Advantage of Products & Services. At least once a year, you should sit down with your banker to review the products youâre using. Perhaps youâre paying fees for a product you rarely use or technology has advanced and greater efficiency is available. A relationship review with your banker can help you tackle ways to save money and time. ⢠Banking is About More Than Credit. Donât lose sight of the fact that banks offer more than credit and loan options. Banks can help you with services to manage your funds and information to help you grow your business. Beyond a checking account, your banker should be able to offer other cash management tools, online and mobile banking services, credit card processing, payroll management and other services. Also, many banks now offer online tools and resources for your business beyond banking. These include tips and expert advice on everything from marketing and human resources to social media, fraud prevention and eCommerce. ⢠Ongoing Evaluation. Be sure you and your banker are both clear on your financial goals. Evaluate these at least a few times a year with formal meetings â either with in-person or phone conversations. Email is convenient, but a personal connection helps build a strong long-term connection. Most importantly, these check-ins provide a great opportunity to assess your needs and how these needs may have changed, then make any necessary adjustments. The right banking relationship can not only make your life easier, it can also help you effectively manage and grow your business. Itâs essential to find the right banker for your company. Then take the initiative to leverage and foster the relationship to get the most out of it.
- Any good relationship starts with finding the right partner. This is especially true when business executives seek a beneficial relationship with a bank. Banking relationships are unique in that bankers have a role to represent the bank as well as be an advocate for the client. You will want to select a banker who can successfully execute in both of these roles. Your banker should ask questions to adequately understand your business objectives and to offer a customized suite of products and services to meet your business goals and objectives. Business executives want someone who is not only experienced and knowledgeable about their business and industry but also has the analytical expertise to understand financials and knows how best to structure loan terms. To help establish and grow that relationship, executives need to know what and what not to ask financial advisors in order to maximize the business relationship. The following key steps will help guide that process: To help establish and grow that relationship, executives need to know what and what not to ask financial advisors in order to maximize the business relationship. The following key steps will help guide that process: 1. Communication Set up a regular meeting plan with your banker, one that meets the objectives of both your banker and your company. Be clear on the objectives of these meetings and what information should be shared at the meetings as well as between meetings. Be open in these communication opportunities to share concerns and expectations. This is also a platform to disclose all financial information, both good and bad, in a timely and consistent manner. Additionally, ask for your bankerâs assessment of your borrowing capacity. Be sure you understand why the limit has been set where it is and what steps you should put in place to increase your borrowing capacity. Ask for industry comparisons from your banker, allowing you to better understand how your company stacks up with others in the industry when comparing financial ratios. 2. Building Trust Focus on building your banker into one of your strongest advocates. This will prove beneficial to you in that they will need to sell your business to their internal credit team, and you will want them to be confident in you and your team. Building trust happens as a result of effective communication. Be as open as possible with your banker and be sure your banker knows the key colleagues on your team and how they bring value to what your company is achieving. Building trust and integrity can also mean sharing bad news when it happens. Being transparent about all news, both good and bad, in a timely manner allows for open and candid discussions that will inevitably help build trust in the long term. 3. Financial Preparation Know your numbers and be prepared to support your sales forecast based on tangible information. Work closely with your financial advisors to sketch out likely scenarios as well as a forecast with a declining scenario. Perform detailed six-, 12-, and 24-month forecasts with an emphasis on cash flow. Itâs this cash flow that is used to repay debt. Educate your bankers on the industry and how your company is expected to perform within the marketplace and against its competitors. Know your market share and explore ways that, with the bankersâ input, you can expand your reach. Ask for and expect to receive ideas, concepts, and strategies from your banker on how to improve on financial results. Remember, your banker is your financial partner and should be available to provide advice, counsel, and solutions. 4. Strategic Initiatives Reserve time at least once a year to have your banker join your companyâs leadership team to brainstorm ways in which the company can grow. An idea-generation session will help build trust with your banker and showcase the depth of your leadership. There is the potential risk of exposing gaps or weaknesses in your team, but, if done correctly, this process can go far to build trust and improve communication. 5. Downside Contingency Planning Be prepared to show your banker the downside risk in your business, such as the loss of any key customers or a shift in product/service demand. Have a plan or course of action that you might likely take in order to survive that crisis. Be honest and up front with your thinking and planning and use this discussion to once again ask for input from your banker on any other ideas. This type of discussion demonstrates your forward thinking and, once again, helps to build trust. It will also allow you to assess the experience and capability of your banker. 6. Succession Plan Build a succession plan that can be shared with your banker. Be sure your banker has had an opportunity to meet the team and to get to know your colleagues. If you have current gaps on your team, you will need to recruit and/or develop talent and establish timelines for that development. Also include any financial impact on your company that will come from the building of this succession plan. The last thing your banker wants is a company solely dependent on one person running it. Depth and diversity of responsibility on the leadership team are just as important as the depth of capital on your balance sheet. 7. Banking Services Not all banks are the same. Do your homework and check references. Ask for clients who can validate prospective bankersâ claims that they are competitive, experienced, and relationship driven. Allow your bank to have a profitable relationship with your company. A win-win situation occurs when the bank is allowed to make money on your relationship and you feel that you are being treated fairly. Expect and insist that your banker regularly provides and suggests new ideas, concepts, and banking products that will allow your company to save money, make money, or compete more efficiently in the market. Be ready to negotiate on bank services, as they are not free and you can drive a better deal with your banker by consolidating banking services into one bank. Building a solid banking relationship takes time and hard work on the part of the banker and client. However, maximizing that relationship is mutually beneficial. Demonstrate to your banker that you support the bank and expect to receive the same support in return. Remember: a mutually beneficial banking relationship hinges on honesty, integrity, and open, candid discussions.
- Any good relationship starts with finding the right partner. This is especially true when business executives seek a beneficial relationship with a bank. Banking relationships are unique in that bankers have a role to represent the bank as well as be an advocate for the client. You will want to select a banker who can successfully execute in both of these roles. Your banker should ask questions to adequately understand your business objectives and to offer a customized suite of products and services to meet your business goals and objectives. Business executives want someone who is not only experienced and knowledgeable about their business and industry but also has the analytical expertise to understand financials and knows how best to structure loan terms. To help establish and grow that relationship, executives need to know what and what not to ask financial advisors in order to maximize the business relationship. The following key steps will help guide that process: To help establish and grow that relationship, executives need to know what and what not to ask financial advisors in order to maximize the business relationship. The following key steps will help guide that process: 1. Communication Set up a regular meeting plan with your banker, one that meets the objectives of both your banker and your company. Be clear on the objectives of these meetings and what information should be shared at the meetings as well as between meetings. Be open in these communication opportunities to share concerns and expectations. This is also a platform to disclose all financial information, both good and bad, in a timely and consistent manner. Additionally, ask for your bankerâs assessment of your borrowing capacity. Be sure you understand why the limit has been set where it is and what steps you should put in place to increase your borrowing capacity. Ask for industry comparisons from your banker, allowing you to better understand how your company stacks up with others in the industry when comparing financial ratios. 2. Building Trust Focus on building your banker into one of your strongest advocates. This will prove beneficial to you in that they will need to sell your business to their internal credit team, and you will want them to be confident in you and your team. Building trust happens as a result of effective communication. Be as open as possible with your banker and be sure your banker knows the key colleagues on your team and how they bring value to what your company is achieving. Building trust and integrity can also mean sharing bad news when it happens. Being transparent about all news, both good and bad, in a timely manner allows for open and candid discussions that will inevitably help build trust in the long term. 3. Financial Preparation Know your numbers and be prepared to support your sales forecast based on tangible information. Work closely with your financial advisors to sketch out likely scenarios as well as a forecast with a declining scenario. Perform detailed six-, 12-, and 24-month forecasts with an emphasis on cash flow. Itâs this cash flow that is used to repay debt. Educate your bankers on the industry and how your company is expected to perform within the marketplace and against its competitors. Know your market share and explore ways that, with the bankersâ input, you can expand your reach. Ask for and expect to receive ideas, concepts, and strategies from your banker on how to improve on financial results. Remember, your banker is your financial partner and should be available to provide advice, counsel, and solutions. 4. Strategic Initiatives Reserve time at least once a year to have your banker join your companyâs leadership team to brainstorm ways in which the company can grow. An idea-generation session will help build trust with your banker and showcase the depth of your leadership. There is the potential risk of exposing gaps or weaknesses in your team, but, if done correctly, this process can go far to build trust and improve communication. 5. Downside Contingency Planning Be prepared to show your banker the downside risk in your business, such as the loss of any key customers or a shift in product/service demand. Have a plan or course of action that you might likely take in order to survive that crisis. Be honest and up front with your thinking and planning and use this discussion to once again ask for input from your banker on any other ideas. This type of discussion demonstrates your forward thinking and, once again, helps to build trust. It will also allow you to assess the experience and capability of your banker. 6. Succession Plan Build a succession plan that can be shared with your banker. Be sure your banker has had an opportunity to meet the team and to get to know your colleagues. If you have current gaps on your team, you will need to recruit and/or develop talent and establish timelines for that development. Also include any financial impact on your company that will come from the building of this succession plan. The last thing your banker wants is a company solely dependent on one person running it. Depth and diversity of responsibility on the leadership team are just as important as the depth of capital on your balance sheet. 7. Banking Services Not all banks are the same. Do your homework and check references. Ask for clients who can validate prospective bankersâ claims that they are competitive, experienced, and relationship driven. Allow your bank to have a profitable relationship with your company. A win-win situation occurs when the bank is allowed to make money on your relationship and you feel that you are being treated fairly. Expect and insist that your banker regularly provides and suggests new ideas, concepts, and banking products that will allow your company to save money, make money, or compete more efficiently in the market. Be ready to negotiate on bank services, as they are not free and you can drive a better deal with your banker by consolidating banking services into one bank. Building a solid banking relationship takes time and hard work on the part of the banker and client. However, maximizing that relationship is mutually beneficial. Demonstrate to your banker that you support the bank and expect to receive the same support in return. Remember: a mutually beneficial banking relationship hinges on honesty, integrity, and open, candid discussions.
- A good bank can prove to be an invaluable ally to a small business, not only by helping its owner borrow capital, but also working with him or her to plan for the future and assure potential customers of the businessâs stability and credibility. But just like so many other things in business, when it comes to getting the most out of your relationship with your banker, you get what you put in. Here are three tips for getting the most out of the relationship with your business banker. Tip #1: Get to know your banker. As a business owner, you know the value of relationships. In todayâs business environment â with all its ups and downs â it pays to have trusted advisors you can count on. Take the time to get to know them, their interests and their family. On the flip side, ensure they understand the ins and outs of your business, and that they get to know you on a personal level. After all â itâs a two way street. Your customers invest in you and you pay them back by ensuring their needs are addressed. You should enjoy the same benefit from your banking relationship. Tip #2: Use them as a sounding board. Business bankers work with all sorts of businesses â whether itâs start-ups, well-established businesses, companies that are going through a rough patch or those that are growing at an exponential rate. Chances are your banker has worked with another company that has experienced similar things to what you are currently going through. Take advantage of this experience by using them as a sounding board. Ask for perspectives on current issues youâre dealing with or on insights about operational challenges or a new idea you might have. You might be surprised at the things you learn! Tip #3: Communicate! If you only visit your banker when you need something, chances are your relationship isnât very strong. Whether itâs good times or bad, your relationship with your banker will benefit tremendously from open communication. The more your banker knows about your business, the better prepared he or she will be to help you when challenges arise. At MidWestOne we work very hard to get to know our customers and learn about the challenges and successes theyâre having. Put as much effort into nurturing your relationship with your banker as you would put into landing a big customer or hiring a new member of your management team. You will land a trusted ally who can help you and your business succeed.Â
- Even for a conscientious investor, the task of planning for retirement can be daunting. Most people find it difficult to wrap their minds around their financial future. Intellectually, we understand the importance of long-term financial planning, but too often, our present day concerns take priority. This can be just as true for people already employing a financial advisor as for those who don't. âDid I forget to consider something? How do I structure my retirement to reflect changing circumstances and goals over time?â are some of the questions an investor may have. That's why it's especially important for investors and their advisers to forge a collaborative relationship, and even more so for couples, because the number of factors to consider doubles. Vetting Your Advisor First, it's important to vet your financial advisor, even if they have been recommended by family or friends. Find out about their fee structure and how their paid, as well as their certification and licensing. Find out what their education is. Check Financial Industry Regulatory Authority's (Finra) BrokerCheck for their profile and whether the have any enforcement actions. (For more tips, see 5 Questions To Ask Your Potential Financial Advisor.) Make It a Collaboration Most importantly, look for a financial advisor who employs a collaborative approach. Such an advisor will assess your spending habits, goals and risk tolerance, and create a financial plan tailored to your specific needs, while keeping you involved in the planning process every step of the way. Ask how and how often they prefer to communicate. Do they schedule regular meetings? Do they insist that both halves of a couple are fully involved in planning? A collaborative financial advisor will ask you questions and really listen to the answers. They will pay close attention to your specific circumstances and be willing to discuss your investment philosophy. Be sure to level with your advisor. Be realistic about your spending habits, for instance. Do you need to budget for vacation travel or luxury items? What are your bottom-line goals, and what are your wishes? A collaborative financial advisor will help you prioritize your goals and come up with solutions you may not have considered before. Also make sure to disclose all assets to your advisor. A complete set of data is crucial in financial planning. (For more, see How To Select A Financial Advisor and 5 Facts Financial Advisors Wish You Knew.) Important Tools Find out what kind of technology an advisor utilizes; that can illustrate how technically adept they are and how well they communicate. Two popular ones are Instream Solutions and MoneyGuidePro, which help synthesize the information investors provide, creating graphics that help visualize a plan. As the financial advisor and the investor make adjustments, the investor is able to picture how these adjustments affect his or her portfolio. What happens over time if you adjust your monthly spending, for instance? If you're a business owner, should you consider selling your business, and when? Does it make sense to push back retirement? The investor can see the answers to these questions and track the changes immediately on their screen. The Bottom Line Like most things in life, the effort and thought you put into any endeavor will determine what you get out of it. Maximizing the benefit of utilizing a financial advisors means taking a collaborative approach highlighted by being honest about assets and liabilities and communicating expectations. Only then can your advisor help you formulate a realistic plan that reflects your priorities and long-term goals.
- Before starting your search for a financial advisor, you should make a preliminary list of the specific services that you think you need. This could include things like personal budgeting, retirement planning and stock investing. Once you have your list, find an advisor who is fully qualified to provide the guidance and counsel you are seeking. IN PICTURES: What Is Your Risk Tolerance? Types of Advisors Financial professionals can be classified within more than 50 different specialties, but there are a few that are most familiar. A chartered financial analyst (CFA) has specific expertise in securities financial analysis, investing, portfolio management and banking. A certified financial planner (CFP) must have at least three years experience and pass a series of comprehensive tests. A chartered retirement planning counselor (CRPC) has completed intensive training in retirement planning through the College of Financial Planning. A certified public accountant (CPA) normally specializes in tax preparation and planning. A personal financial specialist (PFS) is a CPA who has undergone additional education and testing to demonstrate financial planning expertise. Here are five questions you should ask before committing to a financial advisor. (Learn more about all the different designations in The Alphabet Soup Of Financial Certifications.) 1. What Services do you Provide? Based on your personal needs, you want an advisor who can style services to meet those needs, such as: Creating a savings and financial plan Tax advice and preparation Managing a stock and equity portfolio Personal budgeting and getting out of debt Developing investment strategies Retirement and estate planning Insurance reviews and advice If a financial plan is created, find out what actions are taken to maintain, update and implement the plan. Ask to review sample reports and other correspondence that you can expect to receive. Find out how frequently you should meet to review the results. 2. Education, Certifications and Experience? Find out where they went to college and if they have advanced degrees or certifications for areas of specialization. Make sure the type of experience is relevant to the type of help you are seeking, and that they have several years in the industry. Find out where they've worked and why they left one job for another. Ask if they've navigated clients through a recession or down market. You want to find someone who can succeed in any market. Make sure your advisor is licensed and otherwise qualified to provide the services you require. 3. What do your Clients Say About You? In addition to getting this feedback from the advisor, ask if you can talk directly to some of the clients. Compare the objectives and goals of these clients to your own. If all the clients are young professionals and you are getting ready to retire, your goals and objectives may not mesh with that advisor's primary focus. Ask for references beyond the clients, and talk to them personally. Ask tough questions and do some real digging. If possible, obtain third-party names of people that weren't initially provided to you and talk to them. Find out how often the advisor communicates with clients, and through what methods. How long does it take for your advisor to respond? How often are the clients' goals and objectives reviewed in detail? Have they ever questioned the honesty or ethics of their advisor? Are mistakes and errors in judgment admitted and discussed openly? What are the advisor's best and worst qualities? 4. What is Your Track Record? Don't take the advisor's word for it. Ask for documents that prove past performance, both short- and long- term. Find out how often the books are independently audited, and who does the audit. If appropriate, talk directly to the auditors. Check public records to determine if the advisor has had any discipline proceedings or ethics violations. Examples of the most serious would be fraud, excessive "churning" of securities, misrepresentation, formal customer disputes and any legal action that resulted in compensatory damages. 5. How are You Paid? You want your financial advisor to support your best interests, and you want to ensure there are no conflicts of interest when it comes to compensating him. The fee structure will usually fall into one of these categories: Hourly rate Flat fee per month Percentage of the assets managed (usually no more than 2%) Commission on securities and financial products sold Combination of the above methods Ask for the rates, fee structure and commission schedule. Be wary of a compensation plan that is motivated by numbers of trades or purchasing a number of different products. You want independent advice that is not unduly persuaded by a personal profit motive. If you don't like the fee structure that's presented, take the initiative to suggest changes. If that doesn't work, search for another advisor and get the compensation agreement in writing. The Bottom Line Start your search with referrals from people you trust: family members, close acquaintances, accountant, attorney, clergy or business associates. There is no substitute for personal experience and a solid list of references. Conduct an in-depth, personal interview, and get a sense of the person to whom you will be entrusting your money. Make sure you understand their investing philosophy and how they go about making decisions with your money. Most of all, be diligent, patient and very selective.
- Five Tips For Having a Successful Relationship With Your Financial Advisor Even though financial advisors prioritize client service, a lot of people arenât happy with the service they receive from their advisor. While in some cases this can just be because you hired the wrong person due to family legacy or unwillingness to change, you deserve better and there are plenty of advisors out there that want your business. Sapling Advisoryâs matching service can help you find one who will work well with you and be able to serve you better. But before you get a new advisor, you should consider the following question, which will help you have a fulfilling professional relationship with your advisor: Have I been a good client? The truth of the industry is that advisors spend more time on their good clients. And in most cases, whether someone is a good client or not has nothing to do with their dollar asset value- itâs about trust, listening, and being respectful of their time. If you focus on these points, you will have a fulfilling and prosperous relationship with your new financial advisory. 1. Trust The most important part of your relationship with your financial advisor is trust. You need to have confidence that they care about you and have your best interests at heart when they make you a recommendation. Sapling Advisory only recommends advisors that have a fiduciary responsibility to their clients- meaning that they are legally required to act in their clients best interests. Trust your instincts. Donât be mesmerized by sales pitches or a beautiful office- keep in mind when youâre hiring an advisor that youâre doing your research up front so that when you get a recommendation later on, you feel that you can trust it. In order to get the most out of this relationship, you have to be comfortable with telling this person your complete financial details, otherwise, they wonât know what to recommend you and you will end up disappointed with their services. The flip side of this action item is that if you canât muster up some trust for your advisor â you need a different one. That you do trust. 2. Listen and ask questions There will come a time when even though you trust your financial advisor, they will make a recommendation that you donât agree with. Thatâs okay, and advisors know this. Try to understand where they are coming from and how they think the recommendation will benefit you. Advisors love clients who ask questions and want to understand their situation, and will be able to explain things to you. Keep in mind that if youâre not going to at least listen to what your advisor has to say, you might as well not be paying them. Additionally, this is a courtesy that you should grant them simply for spending the amount of time doing research and figuring out their best solution to your financial situation and dreams. 3. Return their phone calls Most advisors have many clients, and usually only call outside of reviews for time-sensitive opportunities. Talk to your advisor about your communication preferences, including how often you want to be contacted. No one likes constant sales calls The flip side is if your advisor NEVER calls you and youâd like to hear from him more often. What do you want to know? How frequently? Fee-only planners tend to call clients less than commission-based brokers. Discuss those expectations with the advisor and make sure it works in their type of practice. 4. Go to your review appointments Advisors donât want to chase you down month after month to discuss their recommendations.  If you are not prompt, the recommendations get stale and lead to disappointment. Again, understand the expectations up front. Are you meeting quarterly, semi-annually, or just once a year? Does the advisorâs review schedule work for you? Or do you really need someone who meets more or less frequently? Whatever timetable you decide upon, stick to it. 5. Donât wait until a crisis to ask your advisor to jump through hoops Be sure to have regular contact with your advisor. Itâs important that the only times you speak to them arenât when something is terribly wrong at 6pm on a Friday. Be respectful of their time and be mindful of the fact that they have other clients and often a family. However, if you cultivate a great relationship with your advisor, they will be willing to go to great lengths to help you in an emergency situation. Keep these ideas in mind when you are working with your new financial advisor in order to have the most fruitful and mutually prosperous relationship.
- Important Tools Find out what kind of technology an advisor utilizes; that can illustrate how technically adept they are and how well they communicate. Two popular ones are Instream Solutions and MoneyGuidePro, which help synthesize the information investors provide, creating graphics that help visualize a plan. As the financial advisor and the investor make adjustments, the investor is able to picture how these adjustments affect his or her portfolio. What happens over time if you adjust your monthly spending, for instance? If you're a business owner, should you consider selling your business, and when? Does it make sense to push back retirement? The investor can see the answers to these questions and track the changes immediately on their screen. The Bottom Line Like most things in life, the effort and thought you put into any endeavor will determine what you get out of it. Maximizing the benefit of utilizing a financial advisors means taking a collaborative approach highlighted by being honest about assets and liabilities and communicating expectations. Only then can your advisor help you formulate a realistic plan that reflects your priorities and long-term goals.
- What internal resources exist? staff, $, time, printing, design How do you currently market products & services? Website, social media outlets, flyers, brochures Do you have special offers? Packages, discounts, bonus offers, time limited, valued at____, guaranteed, free How effective have your past efforts been? What resources do you need from your consultant? When do you need it by?
- Communicate: Needs, Expectations, Timelines, Business Values, Changes to your business. Doesnât always have to be formal. Remember that Listening is part of regular communication.