RIDGELAND – Guaranty Bank & Trust Company CEO and President Hue Townsend announced that James “Nicky” Cobb has joined the bank. Nicky will bring his 34 years of banking experience to serve as the Greater Jackson Market President. He is dedicated to the Guaranty Bank culture of providing a traditional community bank experience and building personal banking relationships.

Cobb earned his Bachelor of Science degree from Mississippi State University and his Master of Business Administration from Texas A&M University. He attended Louisiana State University’s Graduate School of Banking in 2007 and the Southeastern School of Commercial Lending at Vanderbilt University.

Since his formal education, Nicky has been dedicated to serving his community as a board member of several area organizations, most recently the Madison County Business League and Foundation.

Nicky, his wife, Elizabeth, and their family have lived in Madison, Mississippi, for 22 years, and are members of Highland Colony Baptist Church.

“It is important we are represented by experienced professionals who are well-acquainted in our markets and dedicated to the communities they serve,” Townsend said. “We are proud to welcome Nicky to the Guaranty Bank team, supporting the work he does both professionally and personally for our community.”

Guaranty Bank is located at 601 Crescent Boulevard, Suite 300, in Ridgeland.

In partnership with the Mississippi Home Corporation (MHC), Guaranty Bank is proud to serve the home-buying needs of educators in underserved areas of the state. Making homeownership more accessible is part of Guaranty Bank’s commitment to community development. From MHC:

“In rural Mississippi, there exists a critical shortage of qualified teachers. In order to move Mississippi forward, our children must have the benefits of quality education. In response to this need, the Mississippi Legislature passed the “Mississippi Critical Teacher Shortage Act of 1998”, which offers attractive incentives for qualified teachers. The Housing Assistance for Teachers Program (HAT) was designed to assist with funding to help teachers buy homes. Making homeownership easier will certainly encourage teachers to move to these shortage areas.”

The Housing Assistance for Teacher Program (HAT) offers up to $6,000 in grant money to licensed teachers who meet the following criteria:

• Applicants must agree to render service as a teacher in an eligible district for three years, starting with the beginning of the school year
• Applicants meeting the credit eligibility requirements of FHA, VA, RD Guaranteed, Fannie Mae, or Freddie Mac

This grant is forgiven if the applicant remains employed for three years in one of the 71 school districts in Mississippi where a critical shortage of teachers exists. You can find a full list of eligible districts here. The grant can be used to cover down payment, closing costs, prepaid expenses, and mortgage insurance (if required). The teacher must provide at least 1% of the sales price of the home from their own funds. There are no income limits for this program, unlike many other down payment assistance programs. The home being purchased must be located within the county where the teacher is employed. Additionally, this grant must be used in conjunction with a 25- or 30-year fixed loan, FHA, VA, USDA, Fannie Mae, or Freddie Mac product. The funds available are dispersed on a first-come, first-served basis, and the grant program is funded on a yearly basis.

To find out more about this valuable community development program, how to apply, and if you qualify, please contact Guaranty Bank’s Mortgage department:

662-449-1089

mymortgage@gbtonline.com

NMLS# 405570

Homestead Exemption – What you need to know

A homestead exemption is when a state reduces the property taxes required to pay on your home. The exact rules and amounts vary by state but, you could save money on your annual tax bill if you qualify.

Who Can Apply

Each state’s qualifying events are different according to their regulations (see list below to find your state). If you live in Mississippi, the following events are eligible for homestead exemption.

If you:

• Purchased a new primary residence
• Turned 65
• Divorced
• Received a property through a will or court order
• Made a change to any names on a deed
• Made changes to the legal description of your property
• Made occupancy changes to your property
• Are a 100% disabled American veteran
• Experienced the death of a spouse that previously received the Homestead Exemption

Filing for Mississippi opens the first business day of January and closes the last business day of March each year for changes made the prior calendar year.

How to Apply

Each state is different and specific sites are listed below.  Mississippi residents can apply for the Homestead Exemption at their local tax assessor’s office.

Alabama – Homestead Exemptions – Alabama Department of Revenue

Arkansas – List of Officials – County Officials – AACD (arkansasassessment.com)

Florida – Florida Dept. of Revenue – Property Tax – Taxpayers – Exemptions (floridarevenue.com)

Georgia – Apply for a Homestead Exemption | Georgia.gov

Kentucky – Homestead Exemption – Department of Revenue (ky.gov)

Louisiana –Louisiana Homestead Exemption – Get the Actual Advantage (actualtitle.com)

Mississippi –Homestead Exemption Rules and Regulations | DOR (ms.gov)

Missouri – Property Tax Credit (mo.gov)

Texas – Residence Homestead Exemption Frequently Asked Questions (texas.gov)

If you have questions, please contact Guaranty Bank Mortgage at 662-449-1296.

Holidays. That time of the year when families reunite, lunches and mortarboards are carefully prepared, and gifts are exchanged. As the days go by and everybody returns to their busy lives, it’s time to sit at your desk and open the January bank statement. You immediately notice how many times the credit card has been swiped over the last few weeks, among all the toys, holiday nibbles, and last-minute gift purchases.

While this may not be the best post-holiday activity, it’s important to come to terms with your financial goals, find ways to get your money back on track, and avoid any further debt.

Read on to discover how to work out your financial situation after the holidays and to help keep your wallet full throughout the year.

Assess Your Current Finances

Once the wrapping paper has been thrown out it’s time to start assessing all expenses. have a look at your holiday one-time purchases, and by how much you went overboard during your shopping frenzy. Take a closer look at where you stood before the holiday season:

• What was your savings balance? By how much did it decrease, if so?
• By how much did your expenses increase during the holidays?
• What should your essential monthly spending look like?
• What immediate solutions should I take to cover all necessities?

Answering these questions will give you an initial idea of where your finances are standing and how to overcome any potential loss – retrieving your pre-holiday bank statements will come very helpful.

You may realize that cutting back on your spending for a while will be the best solution, at least until you regain control of your money outflows. Make sure you are prioritizing regular expenses such as a mortgage, rent, food, transportation, and utilities and that you are meeting your minimum card payment requirements or pay outstanding balances in full if you can.

After close examination, the faster you can eradicate your post-holiday debt, the sooner you’ll find yourself in better control of your finances.

Take Advantage of Returns and Unexpired Coupons

Few people are aware that holiday shopping can very well pay off. If you realized some of the items you bought are best to be returned or exchanged, you may still be on time to do so – don’t forget to bring the original receipt!

This is a good way to put some money back in your pocket and to get rid of gifts you don’t intend to keep. Watch out for the return window to avoid ending up with unwanted items that you cannot take back.

If you shop with a cash-back card, this is a good time to redeem any points or rewards you accumulated. You may end up with gift cards to use for your necessary spending.

Lastly, don’t forget to take advantage of coupon clipping – whether at grocery stores or retail shops. Saving money is very important at this stage, as it will help gain control of your expenses and refill your savings account.

Set Up a Fixed Allowance

Just because you are trying to save money after a big holiday shopping spree, it doesn’t mean you should entirely eliminate all spending. While this would be unrealistic, putting a cap on your purchases is completely within your power. Be mindful about the amount you do spend by setting up fixed amounts for each of your necessary expenses.

Much like traditional budgeting, this allowance will help you stay on track with essentials such as bills, rent, and food. To avoid further overspending, make sure you don’t go beyond these amounts, drawing only from the predetermined “allowance.” This will allow you to only use the money you can actually spend and see if you can indulge in small discretionary purchases on the next holiday season.

Limit Your Expenses

If you are in the process of paying off any extra debt you have accumulated during the holidays, it is wise to limit your expenses to a minimum. In other words, new credit card payments should be close to none. Instead, opt for carrying cash, at least until you’re back on your main financial plan. Paying through cash will help you “visually” see how much money is being spent, preventing you from making unnecessary purchases.

Try to restrict impulse post-holiday shopping, at least for a while. It’s easy to fall into the trap of some retailers, who will sell what’s left from the holiday period at much lower prices, making them more attractive to buyers.

In addition to the mental burden of managing debt, adding to your credit card balance will do you more harm than good. For instance, increasing your credit utilization rate or carrying an outstanding credit balance are all factors that will affect your credit score, so you want to try your best to minimize the damage.

Outline a Clear Plan

While this may sound obvious, creating a solid plan is crucial at this stage of money management. Make sure to outline your main goals, whether it be buying a home, a family holiday, retirement, and so on. This will help you focus on overcoming out-of-the-ordinary challenges like overspending on holiday shopping. Write down what you need to do to achieve those goals: saving more money? paying off outstanding debt? Ideally, you should try to stick with the 50/30/20 budget rule: use 50% of your monthly income to needs, 30% for discretionary purchases, and 20% for savings and debt repayment.

As you work on your plan, it would be wise to start preparing for next year’s holiday season as well. You may create a separate “holiday account” where you can deposit a few extra dollars each month. Once the holidays approach, start shopping in advance, taking advantage of seasonal sales (Black Friday and Cyber Monday) and free shipping offers to buy your gifts. Starting will also prevent last-minute purchases that may eventually add to the overall cost of holiday gifting.

Having a financially rough holiday season is normal and should not be a reason for panic. However, it’s important to get back on track as soon as possible to avoid the same situation the following year. Keeping an eye on credit card statements or holding off on post-holiday purchases is a great way to start re-focusing on your goals and future financial success.

The holiday season is a daunting time for trying to save your money. There are many exciting events during the season, and you don’t want to miss out on anything. You’ve also got plenty of obligations to consider, from your year-end taxes to getting gifts for family members.

You can keep your money under control during the holiday season by using a few points for your holiday saving needs. These include many tips to help you keep your funds in check during a time that is stressful.

Prepare a Budget

Start your holiday saving plans by looking at your budget for the season. Look at how much you’re going to spend on various expenses surrounding the season. These include budgeting expenses for:

• Gifts
• Foods for the season
• Travel for events
• Anything you will send out to people, including cards
• Decorations and other items for around the house

Look at what you’ll plan for the season and stick with the budget. Be realistic with the budget, as you don’t want anything that might be too lofty. You can also add a small bit of extra money to the budget for unplanned expenses, but try to keep those points to a minimum when possible.

Pay With Cash When Possible

It’s easy to go overboard with your credit card spending during the holiday season. But it is also tough to keep tabs on how much you’re spending with your card. You could spend more than necessary because you’re so interested in things during the season.

Paying for items with cash when you can is one of the best holiday saving ideas you can consider. Avoid using your credit card too often, as using it more than necessary could create a bill higher than you anticipate. You don’t want to spend money on interest payments, late fees, and other charges associated with struggling to handle your credit card bills.

Watch When You Buy Things

You could find great deals on different items you want to purchase throughout the season. It’s often easy to find discounts on products as you get a little closer to Christmas.

You might find some outstanding discounts on Black Friday or Cyber Monday right after the Thanksgiving season. Amazon users have also found the Amazon Prime Day promotion to be very exciting. But you should check on prices at varying times, especially as you get closer to Christmas. Sometimes you might find a better discount when a retailer is willing to sell something right away.

Review Your Credit

You should request an annual credit report every year to ensure your credit situation is under control. An annual report from each of the major credit reporting bureaus will help you identify if there are any concerns with your expenses or savings. You can also find potential errors and have these removed from your report if possible, helping you boost your score if you can correct something.

You may qualify for better rates on loans and other investments if you have a higher credit rating. You could also renegotiate a mortgage loan or another loan-term expense if you can provide details on a higher rating. This effort could help you save a little extra money during the holidays, as you won’t spend as much on long-term expenses here.

Review Your Current Savings

Check on your savings and checking accounts and other savings investments you have right now. Look at how well they are performing and if they are growing in value. You can review things like:

• How much interest you are getting out of your savings and checking accounts
• Whether your checking account is getting close to zero
• How the stocks or other investments you have are working
• Your 401k, IRA, or another retirement fund
• Any retirement benefits you are getting from your employer
• How much you reach from your employer, including if you saw a raise this past year

Your savings is essential to your life, as you’ll need enough to support your retirement years and any sudden expenses you might come across right now. Be sure when checking your funds that you know what you’re entering into and that you can tell you are saving enough money.

Manage Your Bills

You might have various bills to bear throughout the year. From utility bills to mortgage payments and even car loan payments, you might have many expenses of note.

You can use these points when getting your bills under control for the holiday season:

• See if you can make extra payments on your long-term expenses if possible. You may qualify for reduced monthly bills for some of these expenses, as the principal is smaller and the interest totals may drop.
• Plan how you can automatically pay off debts with a checking account to prevent late fees and other risks. Your bank may support a system that lets you pay these debts through your checking account, but be sure you have enough money in there first. Watch for how much you’d spend at this point.
• Review the due dates for all your bills. Plan a schedule for when you’re going to pay off these bills so you can keep tabs on your work and avoid risking possible extra expenses.

Plan Your Shopping Ahead of Time

You don’t want to get into lots of situations where you buy something at the last minute. You can plan your shopping efforts ahead of time to where you will buy things at the right moments. Last-minute or unexpected shopping efforts might lead you to spend more money than necessary. Sometimes you might spend on things that you don’t actually need, but you think you might want it anyway.

Look At What Works

You will be impressed with how well you can keep your money under control for the holiday season when you look at what works. Your budgeting plans should be managed well without risking possible threats. You’ll have an easier time enjoying your holidays when you know what you’re doing when spending your money.

The term “capital” is broad and can describe anything of value to its owner. Without capital, a business cannot function, whether it is a small family business, a major corporation, or a country’s economy. Think of capital as a way of measuring of wealth. Accountants look at capital in budgeting as cash flow.

Some examples of capital are:

Financial assets – money, stocks and bonds, and bank accounts.

Intellectual assets – patents, software, and brand names.

Physical assets – machinery, equipment, cars, printers, office chairs, computers.

Capital for individuals and capital for business?

Companies use structures that include capital as debt, equity, and daily operations and expenditures. In contrast, an individual holds capital to contribute to their net worth.

Money and capital

Capital is another way of saying “money.” Remember, capital comes with a cost. If the capital is debt, then interest is the cost. If the capital is equity, the cost is distributions the shareholders receive. In the financial world, capital is viewed through the lens of current operations and future investments.

Types of capital:

Working capital

Working capital is answered with this question: Can a company’s liquid assets cover daily obligations?

To calculate this, try two assessments.

-Subtract the current liabilities from the current assets

-Subtract the accounts payable from the accounts receivable and inventory.

Liquidity is another way to view capital. Working capital is a good barometer for a company’s short-term liquidity.

Debt

Borrowing is one way a business can gain capital, and the most common way of borrowing is through bank, bonds, or other financial institution. For small businesses, loans from friends, family, online lenders, or federal loan programs are often the source of debt capital.

There are many differences regarding capital for individuals and businesses. However, in both cases, a healthy, active credit history is required. As with any typical loan, the interest rates vary depending on the borrower’s credit history and health.

In everyday life, we think of debt as a burden. However, it can be an opportunity for a business, provided it is within reason. Monitor the debt to capital ratio to prevent going under.

Bonds are a great way to raise capital when interest rates are low, which means it is cheaper to borrow. Think of the bonds as an I.O.U. between a borrower and lender. A business may issue bonds to raise capital to fund its operations and projects. However, bonds are not limited to just businesses. States, sovereign governments, and municipalities may issue bonds to finance operations and projects. As a bond owner, you are the debt holder of the issuer.

Equity

There are several forms of equity capital. They are private equity, public equity, and real estate equity.

Comparing public equity and private equity

In public equity, the stock market raises equity by listing the company’s shares on the stock exchange. As investors buy stock, a company generates more equity. The single best way to raise equity capital is with I.P.O.s. (Initial public offerings) In private equity, a group of investors raise private equity, which is not the case with public equity.

Trading capital

Trading capital is what it says, and financial institutions and brokerage firms trade capital. There are several methods investors use to add to their trading capital, which are based on calculations determining the allocation of funds to each trade.

Cash reserves

One cannot have a successful investing strategy without optimal cash reserves. Debt liability offsets debt capital on the business’s balance sheet.

Capital can define a business’ structure

A company’s balance sheet is split among assets, liabilities, and equity, and the mix of these assets defines the structure. Some metrics for analyzing business capital are based on the cost of capital, equity return, capital debt, and equity debt.

Examples of capital

Capital comes down to any financial asset an individual or business has. Even one’s bank account is capital.

Tips for securing small business capital: Build a business plan

Lenders will want to see a well-thought-out business plan that outlines marketing, management, and money. As a borrower, one must explain how the money will be used. Like any loan, the single biggest criteria a lender will look for is the ability of the borrower to repay it. In short, a lender will want to know that you know what you are getting into. Having a well-thought-out business plan will help lenders feel more confident in the borrower, as it shows the borrower did their homework.

Business history

Borrowers should have at least two years of business history. Most lenders prefer this.

Plan for the worst

Provide the lender with a business projection 12 months out, broken out month-to-month. Show the lender case scenarios of what happens if the business drops.

Creditworthiness

Borrowers must check their credit for any errors, negative marks, or other issues that may affect their ability to borrow. Get credit in order, as one would when buying a house.

Capital F.A.Q.s

Capital assets is a term that applies to both individuals and businesses, which is anything of value, such as cars, real estate, and investments. Many capital assets are not liquid, which means they cannot be easily turned into cash.

Differences of capital in business and economics

An economist may define capital as liquid assets or cash in hand that can be used for spending. All the money in circulation is how capital is defined on a global scale. Business capital is the money available to run the business on a day-to-day basis and for the future. Typically, the revenue generated by the business is the only source of its capital.

In closing

Overall capital assets are determined by calculating any possession of cash value, such as cars, real estate, equipment, and machinery. There are different types of capital and the context of the use of the word capital can determine its meaning in each situation. View capital in the same way any other financial situation is viewed: Maintain a healthy debt to income ratio, maintain a healthy and active credit score, and monitor the cash flow and balance sheets.

In an effort to notify our customers of the upcoming IRA changes for 2019, we’d like to share some highlights from the press release published by the Internal Revenue Service. All changes have taken effect for the 2019 tax year.

IRA Contribution Limits

For employees that participate in 401(k), 403(b), some of the 457 plans, and the Thrift Savings Plan with the federal government, the contribution limit has increased from $18,500 to $19,000.

If annual contributions are made to an Individual Retirement Arrangements (IRA) account, the limit on that contribution has increased from $5,500 to $6,000 per year. This is the first increase seen since 2013. In addition to this, the catch-up contribution limit for those aged 50 and older remains at $1,000 per calendar year and isn’t limited to an annual cost of living adjustment.

Deductible Contributions

Eligibility requirements for income ranges have been updated for taxpayers making deductible contributions to traditional IRAs, Roth IRAs, and the ability to claim the saver’s credit.

If certain conditions are met, taxpayers can deduct contributions to a traditional IRA. Depending on filing status or income, If the taxpayer or spouse was covered by a retirement plan at work during the year, the deduction may be decreased until phased out or eliminated. This doesn’t apply for those taxpayers and spouses not covered by a retirement plan at work.

Following are the phase-out ranges for 2019:

• Single taxpayers covered by a retirement plan at their workplace is now $64,000 to $74,000 (an increase of $1,000).
• Taxpayers filing as married jointly, where the IRA contribution is covered by a workplace retirement plan, the phase out range is now $103,000 to $123,000 (an increase of $2,000).
• IRA contributor not covered by their workplace retirement plan, but married to someone who is, the deduction will be phased out if the total family income is between $193,000 and $203,000 (an increase from the range of $189,000 to $199,000)
• Married taxpayer filing an individual return covered by a workplace retirement plan, the range for phase-out isn’t subject to the annual cost-of-living adjustment and remains the same at $0 to $10,000.

Additional Limitations

Limitations on defined benefit plans under Section 415(b)(1)(A) has increased from $220,000 to $225,000 effective at the beginning of the 2019 tax year. For participants separating from service before the end of the tax year (before January 1, 2019), the benefit will be computed by multiplying the 2018 adjusted compensation limitation by 1.0264.

Limitations for defined contribution plans under Section 415(c)(1)(A) has increased from $55,000 to $56,000 in 2019.

The Code provides additional dollar amounts that are to be adjusted at the same time and in the same manner as the dollar limitation of Section 415(b)(1)(A). The limitations rules, after the rounding adjustments are applied, for 2019 are listed as follows:

• Exclusion for elective deferrals described in Section 402(g)(3) has increased from $18,500 to $19,000.
• Annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) has increased from $275,000 to $280,000.
• The limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan has increased from $175,000 to $180,000.
• Amount under Section 409(o)(1)(C)(ii) for determining the max account balance in an employee stock ownership plan subject to a five year distribution period has increased from $1,105,000 to $1,130,000, while the amount used to determine the lengthening of the five year distribution period has increased from $220,000 to $225,000.

For more information on these changes, and a detailed account of unchanged limitations, please visit the IRS news release.

Authored By Diédre Barret – Senior Vice President of Sales and Marketing for Guaranty Bank.

The price of higher education has never been higher, and the average cost for just one year of tuition, room, and board at a public in-state school is over $20,000. At the same time the U.S. Department of Education reports that a college education is a “necessity for individual economic opportunity.” Knowing how essential it is – but how expensive it is – saving for college is a must. Here’s how to start a college fund and still keep up with your other expenses.

First things first

The best way to begin saving for college is simply to begin. It’s easy to get caught up in everyday expenses and emergencies and to keep putting college savings off. It’s also easy to rationalize that college could still be years and years away. But, those years will go by quickly.

To be ready, first make sure you’re in the best position to save. Pay off any outstanding debt first, and aim to have an emergency fund of three to six months to cover any unexpected costs. By doing this you won’t be tempted to “borrow” from a future college fund going forward. After this is set, then get in the habit of putting some amount of money away every month, even if it’s just a small deposit. It will add up over time!

Set up the right account

In addition to traditional savings accounts, there are accounts specifically designed to save for college.

• Education savings account. One popular savings mechanism is an Education Savings Account. This plan allows families to contribute up to $2,000 per year on behalf of an eligible student under the age of 18. The advantage of this account is that it grows tax-free. You put away up to $2,000 per year, per child, after taxes. That money is invested through the account to grow more aggressively than with a traditional savings account. Then the money can be withdrawn tax free to pay for qualified education expenses. Another advantage of the ESA is that funds can be used for education expenses before college, such as for K-12 private school.
• 529 Plan. Another option is a 529 Plan. This account lets you save up to $300,000. This option also lets you grow your balance tax free, and quality 529 accounts will give you the option to transfer the funds to another child or beneficiary in the event your child chooses not to go to school.

529 Plans are typically College Savings Plans that function like a Roth IRA. They work by investing your after-tax contribution in mutual funds or similar investments. Much like other investment accounts, the value of your 529 will go up or down depending on the account’s performance.

529 Plans can also be Prepaid Tuition Plans, which allow you to pay the tuition of a participating in-state public college in advance. The benefit of these plans is that you can “lock in” at the current tuition rate. The downside is that most prepaid tuition plans only cover tuition, and not room and board.

• UGMA or UTMA. The Uniform Gifts to Minors Act (UGMA) and Uniform Transfer to Minors Act (UTMA) provide the ability to create a “general” savings account for minors. Then when they reach a certain age, they can withdraw the funds to be used for college education, or for other pursuits such as a down-payment for a house. The benefit of these accounts is that they are not limited to a college fund. Another benefit is that invested funds are not taxed at the parent’s income level. A portion is not taxed at all, and subsequent funds are typically taxed at a lower rate for minors.

Get the kids involved

Finally, remember that kids and teens can be empowered to start planning for college financially, as well. Savings accounts can be opened at any age. Students can also take Advanced Placement (AP) courses that can earn college credit before they graduate high school. They can also aggressively pursue scholarships and grants to help bring costs down.

It’s never too early to start saving for a college education. To learn more about savings options and opportunities, contact your local branch.

Whether you’ve been in business for years, or you’re about to launch a start-up, you must:

• Know your market size
• Identify your ideal customer
• Study your competition

Knowing these three key factors, will help you determine where you stand today, and what strategies you’ll need to implement to keep moving forward tomorrow. Here’s what you need to know when it comes to carving out your place in the market.

Estimate the market size

Your business may be a great idea, delivering a great product or service, but it’s important to know how many people out there are ready, able and willing to purchase your product or service. If the market is too small, your business won’t have enough customers or clients to draw from, and if your market has too many products or services to choose from, yours may not stand out.

To assess the size of the market, look at the total market for your product or service, and then establish a realistic estimate for your share. Next, determine where you’ll sell your products or services, how many locations will stock them, and how many comparable products or services will sell. This amount should be 1% to 5% of the overall addressable market.

Another thing to consider is your penetration rate. You may have a high penetration rate if, for example, you’re selling a product or service that is critical to the work of your customer – such as software, computers, or even office paper. On the flip side, you may have a low penetration rate is you’re selling something that has a specialized purpose that many customers are not ready for or do not have the means to purchase.

Considering these influences together can help you determine how much of a market share you might be able to claim and your projections and strategies for growth.

Identify your customer

In evaluating your market, you also want to factor in who your customers are, how well you can service them, and how you can service more of them. This adds to your knowledge of the market and whether you’re ideally placed to reach these customers and keep their business. To do this, consider your product or service from the customer’s point of view. Think of what problem your product solves or how your service improves the customer’s life.

Consider who your customers are – where they live and shop and what their budgets are. Know their buying strategies and how often they’re apt to purchase your product or service or those of your competitors.

Do a competitive analysis

Speaking of competitors, it is essential to have a firm handle on who else is selling to your market. What do they do – and whether it’s a better or worse value than your product or service – can have a direct effect on the size of the market you’ll be able to secure.

Take a realistic assessment of who your competitors are and their:

• Products and services
• Market share
• Past and current sales strategies
• Marketing and advertising strategies
• Strengths and weaknesses

Asses each competitor’s price point, value proposition, method of distribution and business practices. This can help you determine where you differ, and what opportunities you can take advantage of. For example, if you have a comparable product or service, but at less cost with quicker delivery, you could anticipate seeking a greater share of the market. If another company is delivering “more” than you are, how are they doing it? And is it paying off?

Determine next steps

Knowing where you stand now – and where you could stand – boils down to a realistic understanding of your product or services, the value you provide and just who will pay for them. Many businesses fail by not understanding the market space, their customers, or their competition. Once you’ve honed in on these details, you can better determine your next steps and how you need to distinguish yourself. From there, you can revisit your analysis regularly to make sure you’re evolving and recasting as needed.

Authored By Diédre Barret – Senior Vice President of Sales and Marketing for Guaranty Bank.

Just like a checking account, a savings account is one of the first and simplest tools of personal finance. It often goes hand-in-hand with a checking account, and marks the beginning of a relationship with your bank. But with the many financial and savings options out there, it can be easy to overlook this resource and not maximize it as much as possible. Here are six strategies to get your savings account to do more.

1. Do your research

There are many savings account products out there, and they vary based on their key perks, minimum opening deposit, and minimum balance and pricing options. They also vary in their interest rates, meaning the amount of interest you’ll earn for every dollar you keep in savings. Unlike with loans, with savings accounts the higher the rate the better. Shop around and choose a competitive option.

2. Be realistic

As you look at the different savings accounts, the ones with the more competitive interest rates and monthly compounded interest deposits are definitely appealing. But it’s important to be realistic about how many withdrawals you might make, and how much of a minimum balance you can maintain. Not meeting the account requirements can prevent you from being eligible for the savings account, or could result in monthly service charges. You want to ensure your account is a good match for your income, lifestyle, and goals.

3. Start as soon as possible

Once you know which savings account is best for you, open it as soon as possible! Benefits of saving start immediately. You can set up an account for a young child and use it as a tool to teach money management and savings. Teens can have accounts to save for first cars or college. Newlyweds can open one to save for a down-payment on a home or prepare for rainy days. Bottom line: It’s a good financial habit, and the earlier you start, the more you can save. It’s never too soon!

4. Save automatically

Another way to get the most out of your savings account is to make regular deposits. This can be challenging unless saving money is a natural part of your lifestyle.  One helpful took is to automatically transfer your money to your savings account from your checking account, or having a certain amount allocated immediately to savings after your paycheck is directly deposited. This forces you to only operate out of your checking account funds while the savings automatically happens without you even realizing it. You won’t spend what you don’t know you have!

5. Set goals

Just like with most things in life, setting a goal for your savings can help you achieve it. A goal provides additional motivation and accountability. Set an exact dollar amount and a timeline for reaching it. The goal can be anything: A down-payment for a house, a car, or a retirement account. Set both monthly and short-term goals to stay on track. If you have a savings account for emergency funds, you may want to open another one for your long-term dreams. Your bank can help you determine options and strategies.

6. Explore other savings options

These conversations with your bank may lead to an interest in other savings vehicles beyond traditional savings accounts.  Such as:

• Certificates of Deposits (CDs) feature more competitive rates until maturity. You can purchase a CD with terms to not withdraw the money for 6 months to 5 years. If you don’t need immediate access to funds, CDs can be a great investment.
• Individual Retirement Accounts or IRAs. These accounts help you save for retirement by providing specific tax benefits based on whether they are Traditional IRAs or Roth IRAs.

If you’re looking for savings options with greater returns, CDs or IRAs are a more aggressive option and may be worth looking into.  Savings accounts are a basic tool, in your arsenal of financial management.  They are an effective means of saving money for things you want – or need – down the road. Contact us for more information on selecting the savings account that fits your financial needs.