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.

Achieving work-life balance is the Holy Grail for many of us. For women, the goal can be even more elusive especially if we work in a male-dominated field or if we’re the primary child caregivers. The challenge is further daunting when we consider the need to “lean in” and not step away from the table at critical points in our careers. Based on this, the keys to work-life balance go deeper than creating a flexible schedule or planning for regular downtime. They start with figuring out what that balance is and putting core structures in place to achieve it.

Values

Work-life balance is different for everyone, and what one woman needs could be entirely different from someone else. You have to dig deeper and make sure your life is in line with what you value. Is it financial freedom? Is it being at home for your family? Or maybe not having to travel with your job? And do you find that your work fulfills you as much as other areas of your life? Analyzing these key aspects about yourself can give you a baseline for what you’re doing and what you wish you were doing more of. Be sure to read the blog I wrote about finding your path.

Talents

Another thing people focus on when trying to achieve work-life balance is finding the “ideal” job that has a schedule and deadlines that best fit their lives.  According to How High-Powered Women Achieve Work-Life Balance in Forbes, is to develop a valuable skill set. Focus on doing something you love and will make you valuable in the eyes of an employer. This shifts the dynamic from being a worker who must fit into someone else’s schedule, to being a resource that has something that employers want and will pursue.

Mentors

As you drill down to your values and build your talents, it’s essential to invest in a network of people who know what you do and know your career goals. They will be your partners, advocates, and mentors in identifying opportunities. They will also be a support system once you are in your position to help you juggle priorities, further your career, and build on your success. It takes a village and the value of relationships and allies is priceless!

Organization

Laying this groundwork will make it easier to have the work life you want and the home life you want, without feeling like you’re compromising or – worse – failing. Once you’re positioned to achieve balance, you’ll be better able to focus on the tactical, tangible things that can make the balance even more manageable. This means good old-fashioned systems of organization, delegation, expectations, and boundaries. For example, it is reasonable to not schedule meetings before 8:00 a.m., or step away from your iPhone after 8:00 pm, or schedule a yoga class during your lunch hour. Work-life balance involves creating solutions for work and life that leave you refreshed enough to do both jobs well. This can mean enlisting the help of others, doing less, or just saying no.

Having a career and a life outside the office is achievable. A career is meant to be rewarding, fulfilling, and an essential part of our identities. And having families, interests, hobbies, and roles in your personal life is just as important. There are ways to do both and to do both well, and with the right foundation and organization; you really can have it all!

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

Whether it’s to get established, grow, explore new markets, or just improve the bottom line, businesses typically feel the need to borrow money at some point – or several points – throughout their lifecycle. While it can seem intimidating, taking on a business loan or “debt financing” can be use just what your business needs to:

• Purchase real estate
• Expand operations
• Gain inventory
• Increase working capital

Knowing this, most banks offer a range of business loan products to help entrepreneurs get their feet off their ground and keep reaching their objectives. The question for business owners then is how to choose the right business loan for what they’re trying to achieve.

The following are some of the common products offered and what they can do for you.

Line of credit

Unlike a loan, a business line of credit gives you the flexibility to borrow as you need to, over time. There is not one lump sum to borrow or terms of repayment. You simply pay it back as you use it. Business owners like this option because it lets them budget for inventory, working capital and business cycle needs. It is also backup protection for unexpected expenses and emergencies. Although lines of credit are available in various credit limits, often from $5,000 up to $150,000, they are generally used for basic operating expenses and not large capital expenses, real estate or equipment.

Credit cards

An option many business owners don’t think of as a business loan is a credit card. Just as they are for household spending, credits cards designed for business are convenient and effective. They can be used to track expenses, manage finances online, and easily pay for supplies, equipment and travel. They do come with a credit limit, and there are annual fees and interest payments. And, just like with personal credit cards, business owners should be diligent about not charging more than they can pay off in a timely manner.

Small Business or SBA Loans

Small Business Administration or SBA loans are loans for set amounts for things like land or buildings, new construction, equipment, furniture, or supplies or for funds to purchase an existing business. They are secured, meaning they are linked to your company or business assets as collateral. But they are also government-backed, which can give banks more flexibility in their lending.

This does not mean the Small Business Administration makes the loan. Instead, it provides a guarantee to banks or lenders that they will be paid back in the event of a default.

Some SBA loans offer lower down payments and longer repayment terms than conventional loans, which can help when you’re trying to maintain cash flow and manage debt.

Letter of credit

Another type of business loan is not a loan specifically, but a promise that future loans from other vendors will be paid back. As a business owner, you can apply for a letter of credit, which is basically a letter from the bank guaranteeing that the amount you borrow from other lenders will be paid back on time and in the right amount.

Having a letter of credit in place can give you more borrowing power with potential lenders, especially if you’re dealing in overseas transactions with creditors, wholesalers or service providers that are not familiar with your company.

Business loans

If a line of credit or an SBA loan is not preferred, most banks offer a range of loans specifically for businesses. Loans can be devised in varying interest rates, amounts and repayment terms, and can be used for the broader business needs that may not be covered with other loans, such as:

• Agricultural needs related to farming operations or real estate or equipment purchases
• Construction and development needs related to constructing commercial projects, such as a new office building or retail center
• Real estate needs for commercial properties or investment properties, and
• Equipment needs, which can be financed through loans and leases, leaving you more working capital for operating expenses or inventory costs.

Business loans can be an effective way to finance debt so you can keep moving forward. In the meantime, they can help you establish credit for even more strategic steps down the road. To learn more about the business loans available at Guaranty Bank and the application process, contact us.

Whether you want to launch a business or grow it, you may have the need to capitalize it. In short, this means financing it. And in doing so, there are things to consider as you open your doors, or take your business to the next level.

First, what does capitalizing do?

Technically speaking, capitalization refers to the cost of equipment that is written off as depreciation over time. It also refers to the converting of retained earnings into capital or of an operating lease into a capital lease. In general terms, it means the investment you make in your business, generating money to make the business happen. It may be called funding, backing, capital investment, or owner’s stake.

When you capitalize a business, you’re able to combine funding with your operating cash flow to pay for assets such as equipment, vehicles and real estate, or plan for growth through purchasing inventory, hiring employees, or financing receivables. It also allows your business to reserve funds for emergencies.

There are many ways to capitalize a business. Two of the more popular ones are equity or debit funding, or a combination of both.

Equity funding

As in other financial situations, equity basically means ownership. Capitalization through equity funding involves the investment of the owners, which can take on many forms. Investors can own stock or shares in your business, or partners can be issued partnership interests.

Equity funding can be beneficial in that there is no debt involved and therefore no credit history is required. The money comes outright from the “owners,” so in most cases there’s no need to pay back investors.

The downside is that while investors provide essential funding, they also gain important rights. You may lose some control over your business as every investor will be able to have a say in how funds are spent. If your business is your baby, you may not want to relinquish that kind of power. In addition, in most cases, investors also recoup their share of the profits, which may end up being more than the cost of a loan.

Debt funding

Another way to capitalize a business is through debt funding. This allows you to take immediate action to open your doors or grow your business by taking out a loan.

There are many ways to do this, whether direct financing through a bank or more complicated arrangements such as with angel investors or venture capitalists. Debt funding is beneficial in that you don’t have to give up any ownership interests. The business remains in your control. At the same time, you make regular payments that can help you build business credit. And going forward, the interest you pay on the loan can be written off as a business expense.

The downside of debt financing is that you’ll need enough cash flow to make regular loan payments. Not making timely payments can hurt your credit rating. Taking out a loan can also can increase your debt-to-equity ratio, which can paint the business in a negative light. Another disadvantage is the debt is often tied to collateral, which may be the business itself or the owner’s personal assets.

Capitalizing interest

Something to consider when capitalizing your business is the opportunity to capitalize interest. This refers to the interest you pay on loans to finance your long-term assets. When you capitalize interest, you add the cost of the interest to the book value of the long-term asset.

In that way it’s seen as a depreciation expense rather than an interest expense. This can reduce the business’s profit “on the books,” while not reducing its cash flow.

The downside of this option is that you cannot realize the tax benefits in the same year the loan is taken out. The interest expense can be recognized as a depreciation expense in a later period.

Capitalizing your business is something every owner must consider whether they’re just starting out or they’re ready to grow, acquire, and move into new markets. Many times, the capital comes from a variety of places – owner’s savings, personal investors, interested partners, or long-term business loans. However, you choose to obtain funding, there are options that can help you succeed.

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

Facebook, Twitter, Instagram. Chances are you’ve heard of all these and countless more in your personal life, you may have your favorites, or you may ignore them all together. But in business, social media is essential. Whether it’s to create brand awareness or generate leads, social media connects your business to the world and can be an essential component of your overall marketing plan.

FIVE TIPS to help ensure you’re getting the most of your social media strategy:

Choose the right platforms for your business

Did you know that are more than 60 social networking sites? Social media platforms vary in features, functionality, and target audience, so choosing where to invest resources depends on your business and who you’re trying to reach.

For B2B businesses, it may be helpful to focus on Facebook, Twitter and LinkedIn. For B2C companies, and especially those seeking younger audiences, adding Snapchat, Instagram and Pinterest may be a sound decision.

To get started, focus on setting up and maintaining three or four sites. On each one, make sure you’re listing up-to-date, consistent information about your business and that you’re optimizing your profile for each site.

For example, on Facebook you can add a “Shop Now” call-to-action on your cover. For each account, make sure your brand is represented with your logo, colors, taglines and smart copy. Be sure to link to your social media accounts from your website.

Think content, content, content

Thinking you have nothing important to say stalls you from posting anything! In reality, content ideas are all around you. Remember that YOU know your business, but your customers do not. Let them know about new products or services. Post a behind-the-scenes look at your office or facility. Weigh in on a topic that’s happening in your industry, and invite comments from others. Depending on the platform, consider adding videos or customer polls, which can be entertaining and engaging. You can always highlight information from your website – this will maximize your web content and drive traffic!

Important to keep in mind also: IMAGERY. Posts with pictures are more likely to get likes or clicks. Social Media Examiner reports that 74% of social media marketers use visual assets in their social media marketing. 

 Post regularly

Make social media part of your daily and weekly tasks. Depending on your audience and platform, you’ll want to post, share, like, follow, or retweet several times a day or a few times a week. To make things more efficient, create a social media calendar to generate and coordinate your posts, and schedule bulk-posts on a free software platform like Hootsuite.

Your business may lend itself to regular topics and themes. For example, if you’re an accountant, you may want to do weekly posts for “Tax Tip Tuesdays.” This lets your audience know to watch for your posts every week, and it gives you an opportunity to showcase your expertise, which can generate leads.

Pay to Play

The ever-changing algorithms used by social media platforms can make it challenging to ensure that your customers and potential customers actually SEE your content, which can be frustrating after you’ve spent time collecting and cultivating it. So placing social media ads can be effective in getting your message out there.

Most social media platforms offer advertising opportunities, and they vary based on how they look and how much you’re willing to spend. To get started, focus on which platform your customers are most likely following you.

Then, determine your business objectives: Do you want to raise awareness, increase engagement, boost traffic to your website or generate revenue? Depending on your goals, the platform can guide you through options in graphics, timelines and audience.

Interact

Finally, remember that social media is social. Just like your business often grows through word of mouth as well as networking, your business can grow by interacting, commenting, sharing, and participating in social media. This is called ENGAGEMENT and we all want it!

When you post, invite others to comment, and do not be shy about posting on other business’s pages. Posting and commenting keeps you in the conversation and top of mind to viewers. Every time they see your profile picture your brand is reinforced. Stay in the game!

In summary, social media can boost your marketing efforts and add visibility and credibility to your brand. If you’re just starting out, take the time to set up your social media accounts. Assess new and existing accounts and make sure they’re optimized for every opportunity.

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

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

When you started your business, maybe it was a side hustle. Or maybe you set out to fully establish your business from day one, but the ramp up time was slow and you needed another stable job to supplement your income. At first, you probably spent a couple of hours per week on the business and made a little bit of money to cover the costs. As time went on, you started to see that there was a way to make this a full-time job.

Now it is time to scale the business.

Maybe you need capital to increase production, employees to handle demand, marketing to reach the next level or capital to fulfill a big order.

Here are 6 topics to consider as you scale your business:

Ask your bank for additional services:

Your bank can be an invaluable resource for add-on services that help to make day-to-day business a bit easier. Services such as remote deposit, payroll services, company credit cards, integration with accounting software and many other services are offered by your bank at little to no cost. Each of these services can help you to save time or money to allow you focus on growing the business.

Look for the free (or low cost) money:

When people think of grants, they typically associate them with non-profits or student businesses.  There are thousands of grants available to for-profit businesses each year. But, where do you find them?  A great place to start is the local bookstore or library. There are books published each year that list all available grants and give a blueprint for how to write your application. You can also look to government entities, such as the U.S. Small Business Administration.

Finally, you should seek information from your local government office on grants available in the area. You can also check with your bank to see if there are any funding options at low cost through government backed programs.

Use social media to tell your story:

Many people use social media to pitch their product, but few businesses do it with any strategy. The key to social media is consistency and supplying content that people will read. Here is a simple road map to follow when building a marketing plan around social media.

• Run a like/follow campaign to build your presence. Give away your product as a way to reach more people.
• Humanize your business. Tell stories each week about your employees; or your struggles; or your successes. People are interested in you just as much as the business.
• Get involved in the community and share your stories with your followers.
• Be consistent. Try to post once per week (or more) and use themes to help organize posts. Themes can include ideas like Product Mondays, Employee Wednesdays and Community Fridays.

Know your numbers:

Knowing your numbers can make your business grow much faster. If you were asked your sales from last month, would you know the answer? Let’s say you do know the answer and it is $50,000. From that $50,000, how much did the company make after all expenses were paid? These are fairly basic questions that a business owner should know each and every month. If you don’t know the numbers, how do you where to focus for growth?

Here are a few tips when looking at your numbers on a monthly basis:

1. Quantify success and failure.
2. Know exactly how much it costs to produce your product.
3. Create value in order to get premium pricing and profitability.
4. Know what it costs to run your business each month (overhead).
5. Be aware of problems before they arise by looking at trends in costs and revenues.

Utilize SAS solutions to fill a void:  

SAS (Software as a Service) and can be used to perform many different jobs to improve the efficiency of your business. Many SAS solutions are free for trial or basic versions and then have a monthly charge for a subscription to the service. According to idonethis.com, the average startup uses 17 SAS-based solutions on a monthly basis. As technology becomes faster and more intuitive, look to SAS as a way to optimize your business.

The #1 reason businesses fail:

The number 1 reason a business fails is not enough revenue has been generated to sustain the business. Another way to say this: you need to get out and SELL. Sales are the life blood of the business and in order to scale, you need the revenue and demand to support the increase in production. Think of alternative channels to sell your product such as strategic partnerships, co-ops, online, local, wholesale or white-label. Open up more sales channels and the revenue will follow.

During the 2016 – 2017 school year, Guaranty Bank partnered with EverFI to bring Financial Education to local area schools.  The program is designed to provide digital education resources to schools, with no cost to the school or school district.  Financial education courses include everything from introductory topics such as saving and budgeting, to advanced topics like insurance, taxes, and investing.  At the end of the program, students will have a more thorough understanding of financial concepts and are better prepared to make decisions. These skills will help them reach their financial goals in the future.

Guaranty Bank, along with EverFI, were able to provide instruction for 296 students in 3 county schools.  This added up to over 1,800 hours of learning.  Scored topics included financial literacy, understanding money, and money management.  The results for the participating students were astounding!

Financial Literacy

The course on financial literacy included lessons on banking, savings, payments, credit scores, student loans, renting vs. owning, insurance and taxes, consumer protection and investing.  The students increased their pre-test scores by an average of 89% upon completion of the course.  The greatest gain was seen in the renting vs. owning segment.

Understanding Money

The key question in the understanding money course is, “can you help your friend from outer space understand the difference between needs and wants?”  In this course, the students completed lessons on the following topics:  responsible money choices, income and careers, making plans with money, credit and borrowing, insurance and safety, savings and investing.  Students showed the highest gains in savings and investing.

Money Management

Research shows that feelings of self-efficacy, or confidence in one’s ability, are an important outcome in financial education.  This confidence in financial capability will carry all the way into adulthood.  After taking the course on money management, the students are more confident and better prepared to make financial decisions.

If you would like more information on Guaranty Bank and our commitment to financial education, please click here.