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10 Truths that all Small Business Owners Should Know

By Lynn Vos, area director of the Georgia SBDC Network

Last week a new business owner asked me what ten things would I tell a family member who was starting a business. This was an intriguing question and one that I pondered. At first, I thought of the standard things such as write a business plan, know your break-even point, know your target market, etc. Then I realized that you would pick that up in any literature on starting a business. It’s the other little nuggets that you need to know that you won’t necessarily find in a business book.

These “points to ponder” are really for all business owners, not just those who have recently started. As we know from recent economic conditions, all businesses can stray from the fundamentals.

So here are some tips to keep in mind as you go about your daily business:

1. Don’t ever forget that nobody will look after your money like you do. It’s okay to seek advice on investment strategies, tax savings, and other vehicles to make money. It may also be okay to let others keep your books, make deposits, and ring up sales. But at the end of the day, you need to know how much money you have, where it is, and if it is at risk.

2. There is always competition. No matter what product you sell or service you provide, your customers can find someone else to do it or they can just put their money in the bank. So never think that you are the only game in town.

3. There is no standing still; if you are not improving you are losing ground. I was at a seminar a few years ago and one of the speakers made an interesting point. He suggested that we as people were “depreciating.” The point made was that if you are not improving and learning new skill sets on a regular basis, you will become like old inventory…obsolete. This also holds true for businesses.

4. Just because it’s new technology doesn’t mean you need to have it. So many times I see business owners buy very sophisticated and expensive technology to do a job where a much less expensive and simpler technology would have been sufficient and easier to use.

5. It’s what the customer wants not what you want that counts. I think this speaks for itself. Stay focused on what the customer wants and don’t forget that customers vote with their wallet.

6. The time to seek legal advice is before you sign on the dotted line. All I can say is don’t be so in love with any piece of property you want to lease, any business you want to buy or sell, or any contract that you want to obtain that you don’t take the time to have it reviewed by your attorney before you commit to the deal.

7. Without revenue, nothing else matters in business. Don’t forget the basics of making sure your cash register rings. It is so easy to get distracted by administrative issues, but you must always remember that without sales there is no business.

8. Without performance, image means nothing. You can have the greatest marketing effort in the world but if you don’t have the ability to deliver the product or service, you’ve wasted everybody’s time and your money.

9. Get to know your banker before you need them. If you have a long-standing relationship with your banker before times get tough, it is easier for them to go to bat for you. They already understand your business and know your strengths.

10. Always have an exit strategy. You need to know how you plan to exit the business on both the winning side and losing side of the game. If your business is failing, how much can you afford to lose and when do you need to pull the plug? If your business is successful, how much do you want to sell the business for and what does it need to look like to get that price?

For more tips on better running your business or to speak with one of our business banking specialists, please send us a note or call 706.283.2854.

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Business Cash Management

5 Tips for Tightening Up Your Cash Flow

By Michelle Wright, business consultant for the Georgia SBDC Network

Today, many small businesses face the daunting task of taming their expenses in challenging economic times. Here are some tips to remember that may make tightening up those purse strings a little easier:

1. Be aware of all overtime. Make sure on a daily basis that time is being checked and resources are being utilized efficiently. Not only do you pay time and a half, but you pay the social security and Medicare on the higher wages. Trying to keep overtime to a minimum will keep the wages and taxes in check.

2. If employees use company vehicles, check mileage. With the price of fuel being high, keeping a close eye on the number of miles that are driven will help ensure that you are not paying for personal errands with the company’s car.

3. Company cell phone usage should be reviewed. Is there a more efficient plan available for the number of minutes the company is using? Or, maybe the employee is making too many personal calls. Having the employee reimburse the company for minutes over the allotted plan could help keep your rates lower.

4. Shopping your suppliers. Have you checked to see if you can get better deals on your merchandise or services? When is the last time you did some shopping around? It may be time to look at insurance policies as well. Many business owners get so caught up in the day-today operations, they do not take the time to look at areas where they may be able to save a little money.

5. Review your marketing program. Are you tracking how new customers find out about your business? If not, you may not be utilizing you marketing dollars efficiently. Track where your customers are from and how they hear about you. Then, look at the information and see if you are paying for advertising that is not bringing in results. You should not cut out marketing. You need to make sure that people know you are still there. But you definitely want to make sure dollars going out are bringing dollars in.

Finally, while reviewing these expenses, you also need to review your sales prices. Small businesses will have to raise their prices to keep up with the increase in the cost of doing business. It is hard for the customer to take a huge increase, so a plan should be in place to raise your prices incrementally. Not only have fuel and many other products gone up tremendously in the last year, but the minimum wage is increasing each year also. Employers must plan ahead for these increases and not be taken by surprise.

Check out the competition. Make sure your prices are still competitive and you are covering your cost. By taking some time to review your expenses, watch your employees and monitor your prices, you should be swimming, not sinking.

For more cash flow tips or to speak with one of our business banking specialists, please send us a note or call 706.283.2854.

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Blog Investment Services Personal Saving & Budgeting

6 Financial Traps New College Graduates Should Avoid

As college students across the nation graduate and start their careers, financial responsibility should be a top priority. At Pinnacle Bank, we’ve identified six common financial traps that could hinder new college graduates from securing their financial future.

“College graduates can make their future even brighter with an early focus on sound financial planning,” said Jackson McConnell, Pinnacle Bank President. “The financial lifestyle and habits they establish now will go a long way toward deciding their financial future.”

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New college graduates should avoid the following financial traps:

• Not having a budget. Simply put, don’t spend more than you make. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses and car loans.

• Forgoing an emergency fund. Make it a priority to set aside the equivalent of three to six months’ worth of living expenses. Start putting some money away immediately, no matter how small the amount. A bank savings account is a smart place to stash your cash for a rainy day.

• Paying bills late – or not at all. Each missed payment can hurt your credit history for up to seven years, and can affect your ability to get loans, the interest rates you pay on loans and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills.

• Racking up debt. Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs, and spend only what you can afford to pay back. It’s a great tool if you use it responsibly.

• Not thinking about the future. It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Contribute to your employer’s 401(k) or similar account, especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money.

• Ignoring help from your bank. Pinnacle Bank offers online, mobile and text banking tools to manage your account night and day. Use these tools to check balances, pay bills, deposit checks, monitor transaction history and track budgets.

Avoid these 6 financial traps and you’ll be well on your way to a solid financial future!

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General News

Celebrating National Ag Day with Financial Tips for Farmers

We’re joining other banks throughout Georgia in celebrating National Ag Day today by providing financial tips to the next generation of America’s farmers and ranchers. Unlike established farmers, young and beginning farmers may need to learn the basics of creating business relationships and what goes into making financial decisions.

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“There are a number of challenges facing today’s young producers. We’re always here to help navigate the financial ones,” said Jackson McConnell, Pinnacle Bank President. “We want to make financial decisions easier so farmers can focus on the farm.”

Top Ten Business Tips for Young Farmers

  1. Sweat the small stuff. Keeping accurate and detailed records encourages both short-term and long-term financial planning. Not only does it help you stay organized and make better management decisions, it makes it easier for your lender to assess your financial situation.
  2. Develop a business and marketing plan. You will work smarter and improve your odds when you focus and organize your goals.
  3. Evaluate your capital investments for profitability and payback. Keeping track of how long it will take to generate enough cash flows from a capital investment to justify the investment will help you make better financial decisions for the future.
  4. Know your costs. When you consider your cost of living and expenditures, including depreciation and family living, you’ll have a better understanding of your overall financial situation. Your local banker can provide guidelines to monitor your financial ratios.
  5. Decide on what type of operation you want to run. New farmers and ranchers should either be very efficient, low-cost producers or should add value that someone else will pay for.
  6. Consider supplementing your operation with off-farm income until your operation is large enough to employ you profitably full-time.
  7. Consider renting farm equipment or custom hiring instead of purchasing.
  8. Shop around. Getting price quotes on supplies such as feed, fertilizer and fuel can uncover lower cost sources. Your research might get you a discount from a local, preferred supplier that gives excellent service. Make sure product quality is part of your evaluation.
  9. Ask Pinnacle Bank how to get access to state and federal credit enhancement programs. We’re happy to help you identify special benefits for first-time Schedule F tax filers.
  10. When in doubt, ask for help and guidance from someone you trust–an experienced farmer or rancher, a trusted adviser or your local branch of Pinnacle Bank. You don’t have to make these important financial decisions alone.

National Ag Day, now in its 42nd year, is organized by the Agriculture Council of America.

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General News

Pinnacle Bank Participates in Jack Frost Jump

Elbert Memorial Hospital Foundation recently sponsored its 4th Annual Jack Frost Jump at the Richard B. Russell State Park Beach Area, and several Pinnacle Bank employees in Elbert County participated.

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Proceeds from this year’s event go to the Elbert Memorial Hospital Charity Care Program assisting the uninsured, the poor, the needy, and the sick with their health care needs in the community, regardless of their ability to pay.

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Foundation Chair Sandra Brown said, “It was amazing to see all the people who came out for the Jack Frost Jump.  It was estimated that about 100 people enthusiastically ran into the chilly waters of Lake Russell, and there were 200 people watching from the beach area!  The air temperature was in the 40s, with a wind chill in the 30s, and the Lake Russell water temperature was 45 degrees.

That water was mighty cold, but the Pinnacle Bank team was proud to brave the chilly temperatures for charity.

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Pinnacle Bank is proud to support local charities in our community, and were thrilled to support the Jack Frost Jump! The event raised over $12,000 for the Elbert Memorial Hospital Charity Care Program .

The Jack Frost Jump also honors the life and memory of Donna Seymour, who enthusiastically spearheaded the first two successful Jack Frost Jump Fundraisers.

Categories
General News

Pinnacle Bank Video: Celebrating 80 Years

For 80 years, Pinnacle Bank has proudly stood by our customers. This video captures where we’ve been together, and where we’ll go for the next 80 years and beyond.

As we reflect on the past 80 years, we are proud of our strong foundation and look forward to continuing to deliver excellence in banking to customers just like you.  Pinnacle Bank is truly the bank that’s built to last.