We here at Steven M. Bush, a Professional Corporation, hope that our friends, colleagues, and clients and your families have been spared being infected with the COVID-19 virus. I anticipate that, like me, you haven’t experienced any symptoms of the virus but you’re sick of the effect the pandemic has had on us all. Perhaps we can start imagining a world without shelter-in-place orders, face masks, and fear for our health.

If you and your business colleagues haven’t already done so, I urge you to use this time to re-think, re-imagine, and re-evaluate. What projects have you put on hold and it’s now time to complete? Is your company permanently and reliably set up for remote work and are you supporting that model effectively? Might you need to restructure your operations or balance sheet? Might you be considering a purchase? Did you experience staffing cutbacks, and if so, will you re-staff your teams the same as before?

All this re-thinking, imagining, and evaluating will probably include some cash-flow forecasting that might strain your existing processes and personnel. If you can also de-risk your business and become more agile, all the better – but who will help keep all those plates spinning atop each stick? Might you have a gap in your operations and, if so, how might you fill it? Might some tasks get rushed or left undone for lack of bandwidth or resources?

My friend Karen Breen has recently “Embark-ed” on a new adventure working with a team of former “Big 4” CPAs who work alongside CFOs and their teams to move-the-needle on key projects. Karen is the Managing Director at Embark, an accounting and finance advisory firm that solves problems for CFOs and their teams. Embark was founded in 2010 and expanded to Colorado from its Dallas home base just two years ago. Karen and Embark work with companies of all kinds and sizes and offer support in a myriad of areas, from implementing new and complex accounting rules to assisting with quality of earnings analyses, ERP system implementations, audit/IPO readiness, to filling critical-role vacancies from staff accountant to controller.

Especially now, companies are rethinking business models and relying more on on-demand talent such as Embark offers to complete critical projects for which the company might not have the staff, expertise, or desire to tackle on their own. Companies in hyper-growth mode, for example, are often challenged to recruit, train, and build effective accounting teams that can keep up with the company’s needs. These teams are also usually challenged to keep up with changing reporting standards and the company’s growth. For clients like this, Embark creates processes to allow and ensure that the company can properly close its books on time.

What if you’re comfortably handling day-to-day operations but might be over-burdened by a special project, such as a purchase transaction or public offering? Karen shared that these are her favorite projects because they’re dynamic and each is unique. For example, Karen’s team recently consulted with TGIF Friday’s on their plans to go public and with Ping Identity on implementing a new accounting standard.

Embark is small and nimble but leverages big league talent and experience. All of Embark’s consultants started their careers with a “Big 4” accounting firm, and most have additional publicly traded company experience. These consultants offer their clients a high-level of service at a lower cost when compared to other consulting firms. Karen said, “We provide the right talent, for the right need, at the right time.” Sounds to me like Karen also has marketing skills!

Like most financial consulting firms, Embark is equipped to put month-end closing processes in place, to ensure that newly acquired target companies are presenting financial information accurately, and to expand and update accounting procedures to fit growing businesses and ever-changing standards.

Have you stayed awake at night worrying what would happen if a key member of your team suddenly left? Sleep easy! Emergency and temporary staffing for critical functions are in Embark’s wheelhouse. Financing or restructuring issues causing your heartburn? Embark helps clients prepare financial statements that fairly and accurately present the company’s performance and conform with current accounting standards. PPP loan or loan forgiveness application? Sarbanes-Oxley compliance? Facing an audit? Embark has the “plug-and-play” expertise to get the job done.

Karen’s clients tell her that their relationship with Embark is mission critical. When the client lacks the time, resources, or expertise needed, they turn to Embark for needed bandwidth and support. Karen reported that about 30% of her team’s work is on an “emergency” basis – doing or fixing something immediately, when delay means serious consequences. If you have a need, project, staffing gap, or task in the realm of accounting or finance, Embark can help.

Embark is constantly recruiting – not just clients, but talent as well. Their stable usually includes a consultant who has the right skill set to meet the client’s particular need in real time. Karen shared that she most enjoys the variety and diversity of clients and challenges she and her Embark team take on and the smart and versatile people with whom she is blessed to work. Karen recommends when evaluating finance consultants to look for someone with a solid technical accounting foundation and high emotional IQ – someone who is attentive and looks for other opportunities to help.

If you’re interested in hearing more from Karen or think Embark may be able to help you in your business, please reach out to me. I’d be honored to connect you.

As we emerge from the shadows of the pandemic and economic shutdown, things may still seem uncertain. We’ve been separated from people we love and may still be worried for their safety. We’ve been ordered not to do business and not enjoy our favorite activities. Worse still, things may never return to “normal.” All this may leave you feeling that nothing is in your control, and on top of that the things we always fear, like suffering from an accident, injury, or natural disaster, have not moved aside to make room the new worries.

How can we deal with these new worries and long-time fears while maintaining hope and confidence in the future? How do we know we’re doing all we can to protect our families, our businesses, our homes, and everything we’ve worked to build and preserve? One thing we should always do, especially when everything might seem big and scary, is focus on the things that are within our control. Here’s an easy – and perhaps unexpected – starting point. Is your personal insurance program up to date? Do you think insurance is a commodity? Well, you shouldn’t. In today’s uncertain world, you should think of your insurance program as a long-term investment.

Do you have the appropriate coverage in place to protect what you’ve worked so hard to build? How strong is your relationship with your insurance advisor? Does your advisor “get” your lifestyle? Are you confident that that they can recommend the right insurance for you and your family? When I’ve had these questions myself, I turned to my friend Tierney Aldridge at narrative™ by Denver Agency for answers and sound advice.

Tierney specializes in working with successful individuals and families to protect their lifestyle, including their homes, automobiles, and valuable collections and to protect them against liabilities. As a part of Denver Agency – a company that has been independent since 1932 – she’s not beholden to a single insurance carrier’s product. Tierney helps her clients assess their exposures through a simple review process that is actually quite creative and refreshing in an industry not exactly admired for imagination. She enjoys connecting with people, hearing their stories, and then designing customized insurance programs that are both comprehensive and surprisingly competitive. Her most interesting projects involve complexity, which may mean the client owns properties in multiple states, several cars, collections, or needs asset protection strategies.

The process is simple and often begins with a review of the client’s existing insurance program, looking at coverages, loss experience, rate increases, and premiums – things that are frequently overlooked by complacent advisors. Tierney often finds that coverages have not been fully explained to the client, leaving uncertainty and doubt about how the policy will respond in various loss scenarios. As part of their review, Tierney and her team analyze their findings and present them in a clear, simple and yet sophisticated way. Tierney tells me that these reviews often include discussions about self-insurance, increasing deductibles, and the risk benefits of using premium savings to increase liability limits. After the review has been completed and the policies put in place, Tierney and her team continue to provide continuous service and counsel to maintain the integrity and stability of the program.

Can Tierney save every client insurance premium? Perhaps not, but she can almost always improve the structure and coverage of their policies. Many of Tierney’s clients are high net worth families. Many clients own a business or have commercial liability exposure from real estate or other investments. Tierney has the background and team at Denver Agency to solve for both personal and business insurance needs.

As we’ve been reminded in the past couple of months, things can rapidly change. Perhaps now, more than within recent memory, it’s important to make sure your insurance program protects the things you hold dear. If you’re interested in getting to know Tierney or learning more about narrative™ by Denver Agency, please reach out to me. I’d be honored to connect you.

The coronavirus. Is your business prepared for this type of catastrophe? It’s impact on the economy, stock market, supply chain, etc. Companies that survive both the crushing wave of prosperity and the current blow to our economy tend to be resilient and have strong cultures.

Despite the thrill-ride offered recently by the Dow Jones Industrial Average, the economy continues to boom and, according to some crystal-ball gazers, will continue its strong-growth course for the rest of the decade. The booming economy means smooth sailing for all us business owners, right? Time to switch to autopilot and relax for a while, right?

Yeah, right! The booming economy is putting pressure on labor, rent, utility, and other input costs. Recruiting and retaining talent has become a cut-throat endeavor. Even without these strong-economy twists, the maxim, “If you’re not growing, you’re losing ground to your competitors” applies with a vengeance in our technology-powered marketplace. We can’t imagine resting – we’re reacting as fast as new challenges appear. Even if we weren’t over occupied with surviving the pandemic and the other day-to-day needs of running a business and had any free time, we’d be thinking about growth and value creation.

My long-time friend, Mike Butler, executive coach and owner of CEO Focus, has observed hundreds of business owners caught up in this pattern of reacting to today’s seemingly endless needs and hoping to someday take some steps to grow and create value. Mike has helped many of these owners overcome feelings of “I’m in trouble,” “I’m working too hard,” “I’m not having fun,” and “This business is my retirement, but the value is shrinking.”

In many cases, the owner is concerned because the business isn’t growing, the owner doesn’t enjoy running it, or they’ve outgrown their own capabilities. These people sometimes sell the business, but those who want to continue to grow and develop some maturity seek help from people like Mike. He says “I help people get out of the business so they can work on the business. It’s an important distinction.”

Mike’s passionate about helping others succeed. Mike started his career in the insurance industry, and he moved up the ladder quickly. While ascending, he noticed “there were a lot of bodies lying around.” The fast-track rise of the few left a lot of others behind. During his quick rise, Mike became a student of leadership and continued building his career by helping others succeed. With CEO Focus, Mike strives to help business owners and their management teams become effective leaders, build effective organizations, and create purposeful cultures that reflect the owners’ values.

Mike has the tools to help his clients and their management teams overcome reactive mindsets, be more purposeful and proactive, and reprogram decision-making so that it’s intentional and designed to get the outcomes they want. Mike points out that many entrepreneurs start with a dream or an idea about a product or service but don’t learn how to run a business or how to be a business leader. They start out doing what they love – creating that product or providing that service – and as the business grows they are drawn away from what they love, are forced to manage the business, and are expected to lead others, all without training, development or mentoring.

Mike’s process has two parts – a coaching component and a peer group component. Mike coaches clients in a one-on-one setting during which he shares with them what he’s learned in his 40-year tenure of business ownership and leadership development. He’s seen a lot, done a lot, and been through a lot. Mike’s developed a lot of empathy for what his clients are working through, and he shared that his coaching sessions tend to combine business and personal problems and solutions. “It’s all intertwined,” he says. “I’m able to bring a balanced perspective.”

Mike kicks off each coaching session by asking the client to describe how things are going, including how the client is using the tools they’ve been learning, and how they’re working with vendors, employees, and stakeholders to create the culture they want. He helps them learn how they might be holding themselves back. Mike and the client look for ways to create the space the client needs so they can see what needs to be done.

While coaching sessions provide training and expert advice, peer group meetings provide a boots-on-the-ground perspective and get-it-done discussions. Since most business leaders are lonely – there’s only so much they can share with direct reports and only so much a spouse wants to hear – monthly peer group meetings provide a useful forum, like having an external board of advisors. Peer groups discuss the issues members are facing, offer suggestions, provide feedback, and hold each other accountable.

Most of us have been taught, from an early age, to avoid conflict and “play nice.” Most of us have not learned how to navigate and resolve disagreements without being disagreeable, and the lack of these skills causes the breakdown of cohesive, effective teams. A team member’s failure to raise, consider, or discuss the unpopular idea or opinion often prevents the team from fully exploring what might be best course. Mike stresses the importance of healthy conflict resolution.

Mike also encourages developing a culture where nothing is left unsaid in decision-making meetings. This avoids “backchannel politics” or “meetings after the meeting.” Mike teaches clients to use the closing minutes of every meeting to review everything on which the participants agreed, to write down the agreements, and to confirm that everyone is on board. How much less stressful might the past week have been if, two weeks ago, one of your team members had said, “We should prepare a business continuity plan in case this coronavirus thing blows up”?

Most of Mike’s clients tell him they’ve never had similar training or learned these techniques. They also tell Mike that his training and coaching has made them better leaders and better people. One client admitted, having experienced two divorces and suffered through nine months of therapy, working with Mike had been more helpful than all the therapy.

Chances are that your business’ culture has developed over time without your intentional direction. That’s not necessarily a bad thing, but your culture may not allow for the growth or goals you have in mind. Mike works with owners and their leadership teams to intentionally transform culture by creating clarity around the owner’s goals. Mike helps the owner and team members answer the questions “Who are we?” “Why do we exist?” “How do we behave?” and “How will we succeed?” Answers to these questions also help Mike and the client build cohesive leadership teams. This work takes courage and discipline, and it requires the client be committed to the process. For most clients, the journey to transformative cultural change has no end point but the initial investment takes 18 to 24 months.

Most of us are aware that there are lots of business coaches offering advice. You may not know that many coaches have never owned or operated a business. Mike recommends looking for a coach who has the background you need and who is an active listener with high emotional intelligence. A coach should understand how their words, actions, and behavior impact others. They should be able to read their audience, determine whether their message is resonating, and know how to change tactics or style midstream, if necessary.

Backed with a 40-year record of running businesses, leading teams, developing leaders, and transforming cultures, Mike’s familiar with the feelings and thoughts his clients are working through and what’s likely to get in their way and that may keep them from achieving results. He’s also been “all in” with the financial and emotional investment in his businesses. Mike knows what it’s like to risk a family’s livelihood on business success. He’s walked the walk.

Mike is attracted to clients with a strong desire to improve and willingness to be vulnerable. He says that he most enjoys helping leaders who are really struggling to change the results they’re getting. If you might want to talk with Mike (especially if you’ve suddenly got lots of free time because everything else around you has stopped), please feel free to call or email me and I’ll be honored to connect you.

You’ve probably got enough on your “to-do” list already, so why add checking the date when your lease expires to the list? If the expiration is way off in the future, are your employees tripping over one another or getting in each other’s way? Are you paying for more space than you need? Is your space serving you, or hindering you?

All of these are important questions, and for answers to these and other commercial real estate-related questions I turn to my friend Jason Bollhoefner of Benchmark Commercial. Jason and his partners run Benchmark Commercial, a Colorado-based real estate brokerage firm that focuses solely on serving tenant and buyer “occupiers” of commercial property. Benchmark is also an EXIS Global partner, which lets Benchmark offer services outside Colorado through its principal-run partners of similar excellence almost anywhere in the world.

When clients first engage with Jason, often they’re having trouble creating a positive company culture, recruiting or retaining talent, or maximizing return. No matter the obstacle or goal, Jason’s job is to help fit the client’s evolving needs and goals in space that will accommodate them – both the immediate needs and those of the future.

Jason’s process starts at the ground floor – identifying the client’s immediate needs. On the next level, Jason charts where the client hopes to be in two years, five years, and beyond. Jason and his team then go to work to accommodate the immediate needs and create flexibility to continue to meet the client’s needs and goals as they change and evolve.

In most cases, it costs money to move to a new space. There’s build-out (“TI or Tenant Finish”), moving expenses, and the potential for down-time. These one-time costs are usually financed by borrowing. However, this isn’t universally true.

While not common, Jason and his team have dug up real estate that fit the client’s needs so well that the client covered its moving expenses through improved efficiency. Jason said, “the glove fit the hand so well” that, instead of having to invest surplus cash in improvements to the property, the client used the funds to buy new equipment. The immediate return from the new location and equipment paid for the entire move and created improved cash flow immediately.

The client locked-up this perfectly tailored solution because of Jason’s diligence, attention to detail, and consideration of all the options – not just the easy ones. Jason also negotiated for the landlord to provide additional space as the client’s needs grew instead of making the client pay for more space than it needed when the client first moved in.

Of course, not all new engagements are so idyllic. A prospect had invested (without having Jason’s help or help from any broker) everything the owners could scrape together into a new location. They found out, when the fire department shut them down, that the building didn’t have the right fire suppression, emergency exiting, or zoning for their business. The prospect lost the entire investment. When they later engaged Jason, it took a long time for Jason’s team to find the right location with the right landlord who would work with the client without insisting on a lot of money up-front. When all was said and done, the formerly nearly bankrupt company is one of Jason’s most appreciative clients.

In many cases, a prospect is too far down the renewal path with their existing landlord for Jason to be of much help. Even in these cases though, Jason helps build a plan to manage the prospect’s real estate needs in the future. In one case, a building materials company renewed its existing lease but quickly expanded its needs when it bought the business of its installation contractor. Jason and his team helped the client identify an unrecognized need for warehouse space. Based on Jason’s consultation, the client combined all its diverse operations in a single location. This solution expanded the client’s space in all the places where more space was needed, facilitated immediate growth, increased the management and employee efficiency, saved a lot of money, and had built-in flexibility to accommodate additional growth.

While Jason and his team don’t do true project management, they do stay involved to help coordinate the tenant finish and ensure a smooth move-in process. They have a huge network of best-in-class providers, from project managers to moving companies. Jason says, “We love to tap our Rolodex (a device for organizing hard-copy business cards) and leverage relationships to help clients get into a space that really works for them.” Benchmark also uses software to help Jason’s team track and manage milestones, deadlines, and next steps. Jason’s goal is to become a trusted, partner-like advisor, offering trustworthy and insightful consultation.

When it comes to deciding between available properties, the cost of occupying and using the space is usually the prime driver. Jason’s team is well equipped to analyze, project, and compare costs among various properties. They’re also experts at helping their clients decide whether to rent or own the property.

In one case where the numbers became the deciding factor, Jason helped his client understand that customers weren’t “dropping in” because they happened to be going by the client’s showroom. When the client understood that its business was a destination for their customers, the client consolidated its showroom with its other space and cut its rent expense by 75%.

Most clients, while concerned with expense, are also intensely focused on space that is welcoming and attractive to customers and recruits, that helps create and maintain the client’s culture, and that promotes success. There are lots of success stories, and Jason observed that the most challenging cases have also been his most rewarding.

Jason shared that, if he were looking for a broker, he would ask a colleague or advisor that he trusts for a personal introduction. He would ask the broker for references that include clients. “It’s a relationship business,” he says, “and I would want to work with a broker who is as interested in building our relationship as I am.” He would also look for a broker who is consultative, with the right combination of skills, network, and influence to complement you and your team. “Sometimes influence is what it takes to move the needle,” says Jason. “You’ve got to like and respect who you’re working with and trust that they’re going to use all their abilities and professionalism to get the results that you want.”

Jason likes working with clients with evolving needs because of the continuing challenges they create. “It’s fun to solve for growth,” Jason enthused. Most of Benchmark’s clients are companies that typically employ 20 to 100 employees. By creating a close, long-lasting relationship with these kinds of clients and prospects, Jason is better able to identify opportunities to add value where the client or prospect often isn’t even aware that they might have a need.

Even if you’re not working with a broker on a long-term basis, Jason recommends reviewing your real estate needs every year. Plan to give yourself much more time than you think you will ever need to find and negotiate for new space. In the current market, it may take more than a year to get the right deal done.  Leave yourself the time necessary for options and leverage.

If you’re interested in getting to know Jason or learning more about Benchmark Commercial, please reach out to me. I’d be honored to connect you.

Do your clients pay before you’ve completed the project?  If not, how long do you typically wait to be paid? Does cash leave faster than it comes in because your business is growing? Do you worry about making payroll? Do you delay kicking off the next project while waiting to be paid for the last one? My friend Brett Haigler calls these cash gaps “bear traps,” and he’s on a mission to help business owners avoid them.

Brett is a founder of InBank – a bank new to the Denver market that Brett jokingly calls a “100-year-old start-up.” Brett and his partners bought International Bank, a 100-year-old New Mexico bank, and by applying the latest technology transformed it into a business-friendly bank. Brett has also run other businesses and comes from a family of entrepreneurs, so he’s familiar with the difficulties and struggles business owners face and knows the stresses they endure.

This familiarity and empathy contributed much to InBank’s development of its “Business Manager” product. “Good businesses get into trouble,” Brett says, “not because of lack of sales or bad money management, but because as they grow they close so many sales that they don’t have enough cash to handle the increased expenses that those sales generate.”

The Business Manager product lets the client sell a receivable to InBank and convert about 90% of the face amount to cash. InBank holds about 10% of the face amount in a reserve account.  The bank’s fee is based on when the invoice is paid, and when it’s paid InBank deducts its fee from the reserve. The process is powered by technology. Specialized software automates and manages the program, making it more efficient for the client and for InBank. Since InBank controls the process, it can control costs and minimize the cost to the client. The software also provides analytics to the client and the bank.

Most working capital lines of credit make the borrower (you) “rest,” or pay down the outstanding balance every year.  Business Manager does not require these “rest” periods or paydowns. This is important if your business is seasonal or is growing, or both.

Business Manager also lets the client avoid showing increasing debt on its balance sheet. This is because the Business Manager client is selling its accounts receivable (an asset) in exchange for cash (another asset). The balance sheets of the client using Business Manager show changes between these two asset classes instead of an increase in debt.

For many clients, Business Manager offers more customization and options than most other bank offerings. In one case, a community bank terminated its long-term customer’s traditional $150K line of credit because the client was regularly using the entire line of credit and the outstanding balance was consistently at or near the credit limit. The client also failed to “rest” (pay down the balance) for more than a year. The community bank converted the line of credit to a permanent term loan. Following the conversion, the client had to turn business away because it lacked the cash it needed to fund new projects between the projects’ kick-off and receipt of the customer’s payment.

Brett stepped in and gave this client a $300K Business Manager line of credit. The client used the new financing to fund profitable growth. After three years, the client, working with Brett, has increased the Business Manager line of credit to $650K, continues to grow profitably, and has created several new jobs.

InBank functions like a small bank, but with a lending limit of $15 million it can lend like a big bank, and Brett is a certified commercial lender. “Personal service enhanced by technology” is how Brett describes InBank’s offerings. All the lenders at InBank are commercial banking veterans, and most have twenty-five years or more of experience.

While the Business Manager product is unique and Brett is particularly passionate about it, InBank offers all the other loan products of a traditional commercial bank, such as SBA-guaranteed loans, construction loans, commercial mortgages, and traditional lines of credit.

Brett and InBank also help the bank’s clients manage cash flow with treasury management services such as online banking, sweep services, remote transfers, purchase cards, and merchant services. “Many businesses don’t need to borrow money,” Brett observes, “they just need to manage it efficiently. That is where InBank’s technology can really make a difference.” InBank’s application of technology is also geared to achieve the bank’s institutional goal to eliminate the need for a client to travel to the bank.

Brett’s favorite projects involve trusting relationships in which Brett and the client learn from each other. He loves working on multiple deals with the same client. He says that “efficiency and certainty are enhanced with repeat customers.” “It’s not a volume game for me,” he says. He loves to see clients succeed and avoid bear traps and create jobs.

If you’re interested in getting to know Brett or learning more about InBank, please reach out to me. I’d be honored to connect you.