We are all involved in a variety of business relationships and as fall approaches and the end of the yearcthere is no better time to take a look at how your banking relationship is working for you.

At Peoples Bank we consider ourselves Financial Partners.  What is a Financial Partner you might ask?  Great questioncconsider the following:

  Does your banker call and check in with you?
  Is your banker informing you of upcoming specials or promotions?
  Do you have at minimum a yearly financial checkup with your banker?
  Is your banker excited or vested in your business?
  Does your banker drop by your business?
  Does your banker even know your name?

If you can't answer yes to any or all of the above questions, maybe it is time to ask yourself "Why am I still banking with Brand X?"  I need a Financial Partner...

Deepening the relationship is a two way street.  Your banker needs to be proactive to your financial needs...not reactive!  As a business owner you need a bank that will meet your needs at your next financial level when ready.  A financial partnership should start the day you begin banking at brand x and hopefully it will never end. 

Bottom line...are you satisfied with your financial relationship today?  There are many banks in our town and you need your banker plugged into your business needs.  This is a great time to assess your business goals and financial relationships as the end of the year approaches and a new year begins.  Good luck!
 

Troy Wills, People's Bank WYPs Advisory Council

Amy Nicol, People's Bank WYPs Advisory Council

By Debbye Omlie,
Communications Manager, SBDC

Wow your peers with your newfound knowledge as you sip your beverage at Business-After-Business!

Join the SBDC for the Whatcom Business Conference, October 18 at the Lakeway Inn in Bellingham! Make those all-important contacts in a full-day of valuable interactive workshops, networking and fun. A gourmet box-lunch is included.

Hear important words of wisdom from some of Whatcom Countyfs  successful companies with strong brand awareness. Learn how they have become leaders in their industries.

Learn how social media marketing affects todayfs business practices and the ins and outs of business blogs.

Discover an innovative approach to hiring great employees; how a Six Sigma approach could help eliminate customer frustration; the top financial errors that can hurt your business; the roles generational influences play in the workplace among Veterans, Boomers, Generation X and Gen-Y, and just what a sustainable business practice is.

Learn how to create far-reaching methods for building lasting connections with customers through branding; how to identify and reach your most profitable customers; how to create a 30-second infomercial, and how to get the mediafs attention and ways to deal with them when they do.

For information on all the seminar descriptions and speaker bios, visit www.whatcomcommunityed.com/conference.

Register today! The early-bird discount of $99 ends September 24. This conference is co-hosted by Western Washington University College of Business and Economics, Small Business Development Center (SBDC) and Whatcom Community College.

For over 20 years, the SBDC has enabled Western Washington's College of Business and Economics to give back to the business community and has helped to shape the economic future of Whatcom County...one business at a time. The SBDC provides free, confidential counseling, technical assistance and secondary research to business owners and managers in an effort to help businesses thrive throughout Whatcom County.

The SBDC is funded through the Port of Bellingham; the U.S. Small Business Administration; Western Washington University's College of Business and Economics; the cities of Bellingham, Ferndale, Blaine, Lynden, and Sumas; Whatcom County; the Economic Development Administration, and private donations.  

Overheard at the Buzz

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So what has all the chitter chatter been about at the Sehome buzz? Well, I heard that Ryan Hummel, owner of Life Chiropractic just became the captain of a local Bellingham rugby team. I would only imagine Ryan that your team might need some adjusting after practice, now that is convenience.

Hold on to your I.D. because Ryan Grams from Country Insurance talked to the Bakerview buzz about the hot topic of identity theft. Did you know that you can purchase insurance for this? Don't worry I didn't know that you could either. I also talked to the group about what has been going on in the mortgage world. We are approaching the largest boom in history for adjustable rate mortgages coming up for adjustment. I would have to say if you plan to stay in your home it's time to refinance and fix in that rate.

How has my side kick Troy Wills been in the Barkley neighborhood? He mentioned to me that his buzz has been hitting record highs in attendance. They have had some great discussions on back to school, the upcoming Business Expo in October and September's social. Stop your whining and grab your glasses because Moss Adams is bringing our next social to Whatcom Wine Makers. Wine and cheese, I bet that this is going to be a sold out event. Great choice on location Travis. 

Movin on up, our own Jodie Beatty from Waddell & Reed did exactly that. Announced at the Downtown buzz Jodie was recently promoted to Regional Sales Director. Alex Scott had talked about the photo shoot he organized for the NW business monthly of hot fall business fashion which showcased many fellow WYPsters, watch out Cindy Crawford we have some new super models in town. Stephanie Artino, from Metcalf & Hodges just closed on her new house and is ready for move in. We are so exited for you Stephanie and can't wait for the personal tour.

Have you not been to one of the WYP's morning buzzes? Stop hitting your snooze button, bring your business buzz and join us for some fun.

Buzzing off at a location near you,

Anny Havland, Neighborhood Mortgage
WYPs Advisory Council, Monthly Social Committee, Bakeview Buzz Leader

 

By Travis Huisman, Moss Adams

I recently enjoyed an interesting discussion with a good friend of mine over dinner and a great glass of wine.  Brad is a business owner and a client, and our friendship has grown over time through our working relationship.  That evening, he had invited me to dinner to share with me his recent stock purchase.  His enthusiasm about this investment was contagious and I enjoyed listening as the evening slipped away.

Between mouthfuls of alder-planked salmon, he was able to quote the price-to-earnings ratio, the return on investment, the dividend payout and various other statistics, intending to convince me of his investing savvy.  I donft remember exactly what led to the pause in the statistical stream, another mouthful of salmon or more wine from the waiter, but I  politely stepped in and asked, "Brad, is your business a growth stock or an income stock?"

Asking this question of clients is one of my favorite pastimes and Brad's confused reaction and blank stare were exactly what I was looking for.  Please understand that I am a business planner, and not an investment advisor, so the reason for asking this of clients is to get them thinking about their business as the main investment in their wealth portfolio. It also helps them think about how business planning can maximize the return on that investment.  By comparing the business to other investments, it helps the business owner relate to and understand the planning concepts I like to relay.

Most people understand the phrase, "growth stock or income stock."  When we use those words to describe a business, we are referring to the business's ability to build internal saleable value (growth) or to spin off large amounts of cash to the investors (income).  For most business owners, their business is their largest (or perhaps their only) investment, and it is critical that the owner understands how the business can most efficiently help build the owner's personal wealth.

Another investment term that cannot be ignored in business planning is "diversification."  Most of us have heard the phrase, "Don't put all your eggs in one basket."  That phrase is most commonly used during discussions of personal investment portfolios.  However, diversification is also extremely important within a business.  Relying too heavily on one revenue stream, one customer or even one vendor can be disastrous for a business and its owners.  Strategies to diversify sales channels, product lines and even geographic territories can help businesses protect against loss from poor diversification.

Considering the business as an investment requires the business owner to step back and take a critical look at the business from ten-thousand-feet.  Managing a business with the goal of  building value is very different from managing a business with the goal of maximizing current cash to the owners. Business owners must fully understand how these differing goals should drive their day-to-day operating decisions and their strategic planning.  A business owner who doesn't understand the difference between the two strategies and fails to focus will have a business that suffers from a confused business model and lagging performance.  Ultimately, such owners may find themselves realizing far less value from their business than they projected.  If the business is the biggest investment in their portfolio, they simply can't afford poor performance.  Business owners planning for retirement can find themselves in serious personal financial straits if their business fails to meet performance expectations during those critical 10-15 pre-retirement years.

As our dinner came to a close that evening, Brad realized he had given more thought to how his newly purchased hot stock fit into his portfolio than he had to how his business fit into his portfolio.  This is a common, and potentially very costly, mistake made by many business owners.  Managing a business to maximize the return on investment will have dramatic positive effects on the business owner's portfolio performance and personal lifestyle over time.  So, do you know the answer to the question, "Is your business a growth stock or an income stock?"

Travis Huisman, Moss Adams
Travis is a Certified Public Accountant and Manager with the Wealth Services Practice Group out of the Bellingham office of Moss Adams.  Travis has over twelve years of experience working with businesses strategically to build value, increase cash flow and plan for transition.  To find out more about whether your business is a growth or income stock, please contact Travis Huisman via e-mail (travis.huisman@mossadams.com) or phone at (360.685.2208)

"We couldn't believe it when we found out it was John. Thousands of dollars of inventory gone and he was the last person we would have suspected. He seemed so honest and reliable - we didn't even think he needed supervision because he was so professional and diligent. We thought we could trust him. How wrong we were."

Don't think this could ever happen to you? Think again.

Employee theft is, unfortunately, commonplace in all too many businesses. Today's perpetrators are getting more creative in finding ways to take from your business. The typical organization will lose 5% of its annual revenue to fraud!  Even Whatcom County has experienced its share of frauds that hit small, local businesses, just like yours. Furthermore, studies have shown that small businesses with less than 100 employees are the ones that suffer the larger losses.

The point is that no one is exempt from fraud.  So now that I've thoroughly scared you, here comes the important part - what you can do to protect yourself.  There are 3 conditions that lead to fraud - Opportunity, Incentive and Rationalization.  The only condition directly within your control as the business owner is opportunity (incentive and rationalization are usually personal factors related to the thief). Implementing a few additional processes in your business can help identify potential fraudsters and allow you to detect attempts at fraud or theft in your business before it gets out of hand. 
Ten tips to help make your business theft proof

1. Background & Reference checks - Minimize your risk by identifying any potential flags with employees.  The state of Washington has an easy to use and low-cost online resource for background checks.  Check with your HR professional for the forms you'll need to have signed and tips for performing a reference check.

2. Make sure that your accounting is not handled by only one person (except for an owner). In a small office, this can be difficult, so I suggest finding ways to incorporate oversight as much as you can.  Most important, not only does this protect the business, but also protects the employee from any potential allegations.

3. Keep your accounting up-to-date. Regular and timely reconciliations make it easier to detect fraud.

4. Conduct regular physical inventory counts and maintain control over access to inventory.  Knowing an employer is paying attention is a deterrent alone.

5. Limit the number of people who have the authority to sign checks.  You can also require dual signatures for checks over a certain amount.

6. An owner should always review the bank statement UNOPENED prior to reconciliation.  This gives the owner a chance to review for anything unusual.  This method alone has caught numerous occurrences of fraud in a business.

7. Create a process for employees to anonymously report any suspicious activity.

8. Guard your petty cash. Have a 'no receipt, no refund policy' for all expenses.

9. Be suspicious if an employee refuses to take a vacation.  Employees that are involved in theft are usually worried about being caught while gone.

10. Review your security for all computers - its good practice to require user logins and password protect sensitive information.

Incorporate as many of these tips in your business and you'll go a long way toward preventing fraud and theft in your business.  Believe me, you and your employees will be thankful you did!

Stephanie Artino is a CPA with Metcalf Hodges, a Certified Public Accounting and Business Consulting Firm in Bellingham.  Stephanie is director of the Metcalf Hodges RAN ONE consulting program, a program designed to help small and medium sized businesses grow and reach their personal and professional goals. 

Despite hopes for hot August nights, the Summer Professional Development Series (PDS) lucked out with a beautiful evening on Bellingham Bay.  While the sun wasn't out during the day, she certainly joined us as we sailed out of Squalicum Harbor aboard the S/V Shawmanee.  As the 25 attendees enjoyed wine, delightful hors d�foeuvres and dessert by Essence Catering, we listened to Gerald Baron of Baron & Co, talk about the fundamentals for marketing and branding a small business.  The event was sponsored by Washington Mutual.

If you weren't able to make the August event, the next PDS event will be in November.  Details of the event are still TBA, so stay tuned and sign up early since space will be limited! 

If you have any questions or comments about the PDS, including what types of speakers or topics you would like to hear at future events, please e-mail info@bellinghamwyps.com.

The Professional Development Series events are offered once a quarter where attendees can receive the tools and resources to help them reach long-term career success.  The series focuses on having speakers who are well-established and successful in the business community and can provide valuable insight into what it takes to be successful in business.