By: Stanley Koopmans, Senior Vice President – Commercial Banker

When it comes to your company’s operating line of credit (LOC), Goldilocks had the right idea.

Rather than trying to get approved for the largest possible LOC your business may qualify for, it’s much better to evaluate your expectations for the year, and attempt to match your credit line as closely as possible to your anticipated needs. This approach also helps cover the scenario where your current LOC won’t be adequate to support projected growth.

Not too big. Not too small. It’s time to make sure your current LOC is a perfect fit.

By: Dan Savage, Senior Vice President and Senior Trust Officer

Regardless of the nature of your business, powerful, unseen laws influence the quality of your client relationships. More to the point, they determine success or failure. When abiding by these laws, your company enjoys the following benefits: 

• Your networks rapidly grow
• Prospects become enthusiastic customers
• Clients view you as trusted partners, rather than expenses to be managed
• Others become eager to help you succeed

Marc McMerty, Assistant Vice President - Commercial Relationship Manager

Early in my career as a commercial banker, I was surprised to learn that some businesses think of their banking relationship as a necessary evil. They need the bank for financial reporting and sometimes a loan or line of credit, but mainly they want their bank to leave them alone. "They'll let us know when they need us."

I was surprised, I think, because I know what goes on behind the scenes at our bank and the conversations that take place in sincere support of our customers. Our greatest asset as a bank is our customers. We only succeed if you succeed.

Buy-sell agreements or buyout agreements are often referred to as prenuptial planning for business partners.  What happens to the business if a partner dies, becomes incapacitated or wishes to leave are all things that can be addressed with solid upfront planning.  It is extremely valuable having an attorney draft an agreement that deals with situations that could disrupt the business’ continuity.  A solid buy-sell agreement provides a value of the business and partner’s interest as well as terms dictating how the business continues while providing proper consideration to the departing partner or his/her estate.

Benjamin Swanson, Business Banker

Working as a Business Banker for the State Bank of Cross Plains, I have been fortunate enough to have the opportunity to work with a wide variety of businesses. Because most of the businesses I work with are spread across different industries, I have developed a tendency to look at the annual business cycle in generalities. For example, January and February is the time when I see most businesses finishing their annual reviews from the year prior, and using that information to plan for the year ahead. September and October tend to be the time of the year when companies are doing that last benchmark check with the annual goals and budget, and looking at what needs to get done before year end. 

Jordon Geiger, Vice President and Trust Officer

According to the Insurance Information Institute, 91 natural catastrophes occurred in the United States in 2017, totaling $23.8 billion in insured losses. Natural catastrophes always seem to be an item of interest on the national news taking place in a land far away from us. 

Unfortunately, like State Bank of Cross Plains, many of our partners, clients and friends came to the realization that our homes and place of business are not excluded from natural catastrophes. 

By Dan Savage, Senior Vice President and Senior Trust Officer

Savvy business owners understand that legendary service results in exceptional customer retention rates…and…greater profitability. Savvy business owners also understand that:

• Human interaction is the basic element of any customer experience.
• These interactions create an experience that customers remember…and feel.
• These experiences are the foundation for long-term relationships and…the glue that binds them.
• Deep relationships are far more important than the product, services, and price.
• Customers don’t love companies…they love you and your relationship managers!
• You serve people…not companies.

By: Bridget Krueger, Business Banker

As a lender, I see everything from startup companies to established companies.  When it comes to applying for a business loan, there are five things that every owner should do to secure the best loan.  It’s important to show banks that lending to you is safe and advantageous for you and the bank.

By: George Ohlendorf, V.P. Commercial Banker

In the last two years I have not spoken with a business owner or human resources manager, regardless of the industry, that is not having difficulty finding employees. 

Many of us know that great companies like Honda Motorcycle failed and Levis Jeans is not nearly the dominating force in the jeans market it once was. What many of us don’t know is that both of these companies faced the same problem; not enough people of the right age to buy their products. This same shortage of consumers contributed to the great recession because there simply were not enough people to buy the inventory of homes.

There are several things to ask before starting a business; however, I have highlighted five questions that should have been thought through before moving forward.

1) Do I have a solid Business Plan?

First, you want to make sure you not only know the industry you are starting your business in, but how you are going to make a place for you and your business in that market.  To do so, you need to specifically lay out what your business is and the need or want your business is satisfying for the consumer (or business if B2B).  Then how will you reach your target audience, and who are you differentiating yourself from?  Other highlights should include: how your company is organized, market research and analysis, marketing and sales plan, financial projections, and assumptions.  Remember, as your company evolves and grows, your business plan should too.