Top 5 Tips for Buying a Business: What you need to know before making a move.

Buying an existing business is a great opportunity to build a brand without starting from scratch. There are, however, several steps you should take before signing your name on the dotted line:

1. Assess your skills. According to business broker Andrew R. Cagnetta, “You should select the niche in which you are an expert and can handle really well. An operating business doesn’t give you the power to make big changes, because it can [affect] current customers and its reputation in the market; hence you should be ready to adjust with the current lifestyle of the business.”

2. Consider hiring a business broker. Entrepreneur.com notes that for a commission, brokers can help you through the entire process. Your broker should be able to help you pinpoint your interests, prescreen potential businesses, negotiate a sale and assist with complex paperwork (for items like licenses and permits).

3. Compile a thorough checklist of materials to assess. This list should include furniture, fixtures, equipment, contracts, legal documents, tax returns for the past five years, financial statements for the past five years, sales records, a complete list of liabilities, debt disclosure, marketing strategies and insurance records, among others.

4. Ask yourself key questions. Businessweek.com recommends asking the following important questions before making any final decisions:

• Will I enjoy running the business six months or six years from now?
• Do I have the finances to buy the business and keep it operational?
• Why is the owner selling?
• What do customers say about the business?

5. Consider getting help from a real estate agent. The experts at Businesssales.com point out that a real estate agent often has the inside scoop: “If a business has been in the same location and is showing a profit they can usually tell you why. It may be because they have a local clientele or some other reason that it does well. By the same token they can tell you if a location has had a steady string of businesses in it. This could mean that the location isn’t favorable to traffic or the building itself could be the cause.”

Purchasing an existing business can be a complicated decision, so be sure to consult with professionals who can point you in the right direction. If you have any questions about your past, present or future financial plan, give us a call – we’d be happy to help.

Commercial banking teams network at ‘Power Breakfast’

Our commercial lending and commercial real estate teams met local business leaders at a Bank sponsored “Power Breakfast” put on by The Business Journal in Milwaukee and the GrowthCLUB Workshop. We are sponsoring Quarterly Planning Workshops and would like to invite you to join us for the next one at the Italian Community Center on June 26. Please RSVP by 6/15/12 to Bob Hoepfner at rhoepfner@northshorebank.com.

How Websites “Sell”— Presenting information strategically

Be you-focused. Companies make the big mistake of talking about themselves or their products/services too much — often without addressing the needs of their audience.

Connect your product/service to your audience. Visitors arrive at your website because they’re already interested in what you offer. Your message shouldn’t be that your offering is good. Rather, your message should show how your offering is good for them. It’s an important nuance.

Sounds obvious, doesn’t it? But….Many businesses unwittingly ignore their audiences and concentrate on their offering. It’s an easy mistake for an organization that’s proud of its accomplishments. Consider these two statements. The first is nonsense, just corporate-speak — but we’ve all seen hundreds like it.

XYZ’s software with its outstanding concentric functionality organizes and integrates daily workflow. (Product–focused)

Organizes and takes care of daily administrative tasks.  Our time-saving, easy-to-use software frees your managers to work on more important matters. (Audience-centered.)

Same Product. Different Perspectives. Where’s the audience in the first statement? It also lacks “context” — a little like the Cheshire Cat, it just floats there. How many audience benefits are contained in the second statement? It talks to the audience and leads with the benefit. It also includes many other website “must-haves” that will be explored later in this series.

Next time: Building a relationship with your audience.

Banking on Better Cash Flow – Ask what your financial institution can do for you

What makes a business successful?

Is it having the right products and services? Hiring top-notch employees?

According to Inc.com, cash flow is one of the most important components of success for small and mid-sized businesses. In fact, without the available cash to pay suppliers when they need to be paid, profits can be meaningless.

Though maximizing cash flow might sound like a difficult concept, the premise behind it is very simple: you need to collect money from your customers faster and delay your payments.

So where do you turn to get help with that?

Your financial institution is a great place to start. We offer an array of services that can help you manage your cash more efficiently.

Specifically, we can help you do the following:

• Speed collections and consolidate funds.How quickly are you processing customer payments and making deposits? Services like online deposit capture let you scan and deposit checks right from the convenience of your office, helping you make your deposits sooner and get faster access to funds.You can also take advantage of our Automated Clearing House (ACH) services, which allow you to collect customer payments electronically, thereby reducing mail float.

  Additionally, merchant services, which provide the capability to accept credit and debit card payments from your customers, can help you generate cash flow. In fact, research has shown that accepting these types of payments can result in increased sales and profits. And because credit card sales are automatically deposited into your account, you won’t have to make special trips to deposit funds.

• Manage payments. Successful cash managers know that you can maximize cash flow by paying your suppliers more efficiently. ACH services and wire transfers allow you to pay electronically and hold on to your funds longer.

• Invest excess funds. Many businesses have excess cash that just sits in their accounts. With our sweep products, we can automatically and seamlessly invest your idle funds overnight in secure investment vehicles.

• Track and manage finances. One of the most important steps in managing your cash flow is knowing your cash position. With tools like online and mobile banking, you can get up-to-the-minute account balances at any time. Plus, you can make electronic payments, see what checks have cleared and set account alerts to inform you when your account falls below a target you specify.

• Manage seasonal cash flow. If your business is seasonal, you may need help with managing cash flow during slow times. To assist businesses, we offer lines of credit that let you access cash when you need it.

Cash In on Our Experience

As a financial institution dedicated to helping build businesses, we understand how important your cash flow is to the success and health of your business. We also know that in challenging economic times, it’s more important than ever to manage money more efficiently. To learn more about ways we can help you maximize your cash flow, stop by your nearest office or give us a call to speak with one of our knowledgeable, local business professionals.

Understanding Your Business Account Fees.

By Cheri Cicona-Trudell, Business Relationship Manager / AVP

Every bank has heard complaints from business owners about bank account fees, especially business account fees that appear to be much higher than fees for personal accounts. The cost of a business account is not the only thing to consider when you’re choosing a business account.

Consider the relationship you can build with the bank, the different services your bank offers, and the personal service you receive from your business banker. These all add value to your business banking experience.

The most important feature of business banking is the relationship you have with your business banker.  As you extend your relationship over time, you need to have a source to contact for a regular review of your account.  As your business grows and the needs of your business change, your business banker can help you adjust your account to grow accordingly with your business.

This is how you can save on fees. There is no point in spending money every month on business banking services you are not using or paying high business account fees and not getting the banking services you need.

As a business owner you should understand the fees you are being charged on your business account, be able to determine the value of the service vs. the cost of the service provided, and ascertain what services and/or products will provide efficiency and support to your business effectiveness.

Begin your account review with your business banker by asking yourself:

• What products and services is my business paying for that it is actually using?
• Does the product or service provide value to my business account?
• Is there new technology that can help my business run more efficient?
• Are there Cash Management products that can save my business time and energy?
• How my business processes payables and receivables and is there a more effective method?

By reviewing your business bank account on a regular basis and comparing the information with your business banker, you can tailor your business banking account to better fit your business and save you and your business time and money.