How Can I Sign California Banking Work Order

How can i industry sign banking california work order

all right cool yeah that'd be perfect me don't see actually I always think I've been looking for estate planners to send out some clients - so I'll be perfect [Music] all right perfect [Music] everybody six you soon so much for getting on this webinar where tonight we're discussing what small businesses can do to really just take advantage of the opportunities that might be around by leveraging banky thanks and how do you probably use base I know oftentimes a lot of my banks my friends don't understand how to use and business people don't know how you can properly use banks and those relationships and I think right now it's such a pouring time to really understand banking so I'm really glad to have to have I'm a hill senior vice president California making trust on adjacent professor and Golden Gate University been in banking for 19 years working with a lot of small businesses with the banking Thank You llama for getting on to the webinar tonight thank you so much well thanks Jason thanks for having me and thanks everyone this is really important time right now as you know we're in unprecedented times for all of us for a myriad of different reasons was really I think it's really important to really talk to small businesses who are who are in need right now for for information and resources to help support them not only just survive but more importantly thrive and in post crisis times definitely different preciate I think this is just the beginning the first we're still within the first quarter of the football game so I think people need to be prepared and know what's going on but you know a lot of people became millionaires and billionaires and a Great Depression and really take your business to the next level so I think it's so important to really understand what about about what you're doing so I'll go ahead and pull up your PowerPoint that you have when you go from there perfect there we go okay awesome okay and then okay so one of the things that we're going to talk about today is as I mentioned is how do we get small businesses to not just survive but thrive and post crisis times it's really important to really know exactly where you are as a small business what are some of the impacts specifically now within the coab 8:19 environment what specifically are impacting small businesses and including specially minority small businesses don't covet nineteen times so when you think about the impacts of Cova 19 are small businesses as you can see generally anywhere from 20 to 75 percent of revenue loss is is based on some of the kovat impacts specifically when you talk about you know not being able to open up your doors to to take on customers and generate revenues you'll see if you're in a face-to-face customer type business or a service industry start business you're really slowly dependent or Majoris dependent on on customers coming in servicing the customers face-to-face and or providing some type of product or service additionally when you look at that you know the impact is like as mentioned is the customer retention you know if you're not their customers going to start going online so I think as we've seen online in the news really a lot of ecommerce businesses that really taken advantage of the opportunity with a lot of these retail and service industry businesses not being available to provide products and services a great example would be Amazon Amazon has increased their business almost three fold I'm just in the course of the last 90 days or so just because people can't get access to normal products and services or goods they would generally get and when they go into retail store whether it be Best Buy or going into a clothing store even in some instances groceries because folks are afraid to go out and there's restrictions based on the shelter in place so a lot of folks are doing things online same thing with what door - people or ordering food the door - and not going out at their house so the chant challenge challenges with small businesses is they can't get in front of the customers fast enough if they don't have an alternative way of doing business through e-commerce things this is really important to know roughly two-thirds of minority small businesses will probably go will go out of business during or post crisis and the reason for that is lack of access to resources resources could be just information capital debated to supplement the the revenue that they're missing through the business being shut down or being modified a great example of that one of the access was the SBA PPP loans a lot of small businesses had an opportunity to take advantage of that however disproportionately a lot of minority small businesses did weren't able to take didn't take advantage of the PPP loans as much they probably should is based on lack of access to information and not trying who to call or who to go to do you have a specific banker that you talk to because a lot of the larger banks really you know they didn't pick up the phone there was no access to a banker so that's a another impact on on small businesses specifically minority small businesses in addition to if your doors are closed we're and you have employees that means you can't pay your employees because you know I have generate enough revenue to take care of your employees so then you haven't a challenge with we're losing your and please because you put your business not operating or you need to downsize or lay off some of your ploys temporarily BB because of lack of revenues and what are you employees do employees still have bills to pay they have a mortgage or rent to pay if karna has to pay their school tuition and some instances to pay as well to get to put food on the table and provide for the families but they can't do that if they're not working the other challenge for impact with small businesses around employees is in the next month or two as we start moving towards phase 2 and phase 3 of opening and restrictions and allow businesses start operating on a more normalized basis the challenge going to be is some of those employees that were laid off back in in March and April now about already went to and the unemployment and the unemployment services in and getting unemployment payments and and some missing some of the lower pane service industry jobs they're getting paid a lot more than with unemployment than they would with being employed so that puts a dilemma between the business owners and them and the employees because now they're not getting paid as much if they go back to work maybe a lot of folks who decided to stay off work and and ride it out and and continue to take unemployment benefits which are much higher than their hourly rate they were getting from their employers so there's a lot of different factors involved in which impacting small businesses and their ability to stay afloat number one and number two is their ability to bethe to continue to survive post crisis if they make it to that point so you know really having access to two resources of information on where to go who to talk to what type of Bank should I go to you have a reliable banker those are all important things that small business owners need to be able to help support them and making the right decisions Yunos having that small business is so important having that relationship I know you helped me out live in this pretty time so definitely right about that his previous we're talking about people a lot like today a zoo came out with their sales expectations and when I move to the roof the amount of sales and how much weight I've been making way more than expect you so just tells you how much people are doing things online it was crazy yeah and and to your point Jason technology matters you know a lot of folks said oh technologies movement but I could still do what I what I have been doing for a long time but now when you're not able to read be able to go out and reach your customers the normal way of customers walking through your door you got to be in a reach so technology does matter in a lot of ways so it's it's really important and especially for for small businesses as well as minority small businesses they have the necessary resources and capital to be to upgrade their technology to better support them their ability to be successful one great example would be nonprofits specifically churches right churches generate most majority a lot of the revenue through weekly tides from persons coming into the church and in tithing you know not not thinking about it you know that you know pre Kubik who would have thought we had a global crisis and pandemic which would really just put the globe on ice and really shut things down and and really have everyone sheltered in place so now as a church now they have to think about other ways to out of date how they get revenue and get their tides so a lot of churches were caught off guard we're not being able to update upgrade their technology to be able to take payments or tides online through the online through our app online services and and merchant services versus just having to come in and and let a check or cash so a lot of churches are really you know scrambling right now to try to stay afloat the just to pay their bills and pay their rent and mortgages because of the lack of technology so that's really really super important but as you mentioned Jason what you know great question is what should small business look for and finding the right banking relationship right that's really critical having the right banking relationship as a small business owner is super super critical one is when you're looking for a bank is is the bank invested in the community and what I mean by that is not just are they active in a community but are they slowly invested in a community are they what are they doing in the community you see them in a community you hear about them in the community are they you know actively involved providing access to the capital resources not just providing donations what are they actually lending to the folks in your community that look like you and small and also are they supporting small businesses what does that look like and also reputation matters you know do they have a good reputation in the community for serving the focusing in their community it's really important as well secondarily do the products and services match your banking needs you know currently is also into the future generally when you looking at you know developing a banking relationship with a bank do they fit your needs currently so based on what your business it's at today does the bank currently have that the products and services and access to these you know or the ATM machine online banking needs that you have currently for where your business is today secondarily is looking forward how does our the services that the bank offer do they offer the services that's going to help you grow and meet your needs into the future you know what does that look like two or three years from now so right now as a small business owner if you know a 2-person shop and I'm I'm working and I'm growing revenues but then two or three years from now I want to be you know at closer to 15 to 20 employees do the services of that Bank help me get to there or do I need to keep hopping and moving from Bank debate because they don't go the services they provide don't necessarily fit the needs of my bank today and into the future thirdly you know and developing a relationship with the banker is understanding the the how knowledgeable and experienced is the banker is the are you working with the banker that is has experience and in the banking mystery my fact specifically do they have experience working in the industry that you're in whether it be if you're a service industry as a staffing company or as you know in and in the technology sector you know or in the financial services industry is the the banker that you working with have you know of the date knowledge and understanding of your industry specifically there to provide you you know the right type of advice and the right type of solutions to provide help support you in in your business to help your business grow based on inferred that you're in lastly you know is your banker accessible I think a lot of folks found that out the hard way doing the PPP process when they try to call the bank that they've been with for 15-20 years or more and no one's picked up the phone right or you couldn't get a hold me and call you back right so so really making sure that you know is there is there a commitment with between you yourself as a business owner and the bank and specifically your banker does your is your banker give you access to their cell phone do they give you let you know what times they're available to support them when you do call them do they are they do they pick up the phone on number one number two do they call you back timely number three are they able to provide you the information that you need on when you need it and how you need it is really critical as well there's huge my clients and friends say hello so I call my banker this period time he was like I haven't got a call back I haven't got no information I keep calling Lighting's busy ever heard nothing and I'm trying to i need this information try figure out how my business survive we couldn't get in contact with nobody it was frustrating for them with a stressful they were trying to figure out what they're going to do a payroll about the business it was huge in this time so you ride being accessible especially during this crisis is huge for a lot of people just trying everything go yeah I you know I can't tell you how many calls that I personally received during the there's the PPP loan process for the last you know sixty ninety days you know getting calls on Saturday Sunday you know 10 11 o'clock at night you know pick up the phone and answer it you know it'll be an email or a phone call or text message the data provide information so that way one provide peace of mind number one so you when looking at having a qualified banker is the right banker for you they able to provide you peace of mind are you able to build trust with them remember three the other thing is do they listen to you are they active listeners are they just talking and telling you what you need to do or that or they taking the time to really ask the right questions to really understand you as a business owner understand your business how they operates and also ask to find out what are some of the successes and challenges that you're facing and then how that's as a banker can help support you with overcoming some of those challenges but also helping you grow into the future where you want to go it's really important so when you're looking so one big question the elephant in the room it is you know I'm a small business I just you know just started or I've been in business for you know 12 to 18 months or so even two or three years and I've been really just funding the business just through my own funds alright with it in I said well that's not sustainable unless you you know you have a million dollars sitting in the bank right and even then you don't want to use all your your reserve capital to support growing your business so you need start building some credit right and it's perfectly business credit so one of the things that we talk about and talk to small businesses is you want to start with having a solid personal credit history right because that's really that's really important so having a FICO score of 680 or higher will definitely help support you and in establishing the business credit scores for the first time so one of the things I advise small business is looking at establish some type of credit whether it be through a business credit card [Music] the with a reasonable and credit limit of anywhere from five hundred to five thousand dollars to get started so that way you're able to start establishing some business credit showing that you're you know you're worthy to take on larger credit line amounts specifically with being able to have that access better to pay things back on time which is which is really important another way of doing that is if you have to have some cash you know disposable cash you know tarting with a secured credit card or a secured line of credit it's always a great way to start it gives you an opportunity to to really establish credit you put you know you can put as little as five hundred dollars and get a credit card or up to you know five hundred to up to a thousand dollars they in the stable account and they put and you played stat towards either a credit card or a line of credit and then you lend off the Lynn thanks well then all of that for you and then as you start establishing your ability to successfully pay that back then you're able to build successful business credit where then you can get unsecured credit through a either credit card or a line of credit in order to do any of that it's the fundamental blocks of establishing good credit is you know are you paying your vendors and bills on time because that's you know one of the the C's of credit is credit building great so really you know really having be able to pay your vendors of time and pay your bills in the time it's really critical to establishing knowing business credit but also establishing good business relationship and credibility as well can you explain the difference before a lot of people might have known on your personal credit understanding business credit which is like some people think your business credit just your regular FICO score by now there's other business cracking explain that special for corporations LLC s corpse yeah so the difference just try just make it really simple for you so you know personal credit history is based on on your on your FICO slowly and then on the business side of things is really based on dun and bradstreet which is similar a little bit similar to the on the to the FICO but it's based solely based on for for small business and corporations so it's really based on your ability Bader paid your vendors and your banks credit limits back on on time so that's really really I guess the simplest way to put it your small businesses and corporations are based on LLC's about business credit don't understand that so that's that's huge yeah and that's where having a banker but you know and Trust is really critical and helping provide that information for your timely definitely we're talking about actual banking the trust which is huge and I think that's why there's such a huge gap we have between a lot of minorities who are 19 appeal of money and who's suffering because we don't have or we don't have where we haven't built up the trust within our bank or like you said I think a lot of us go to the Safeway open up a bank account at Safeway with the purse they get the free checking account in that city and I know the deepness or why why the relationship is so important absolutely absolutely you know access to information is critical it's out there you just know where to go get it and then just have the will and drive to keep searching and searching until you get it that's really critical so we talked about when the right now if your existing small business and you've been impacted by you know Kovac 19 and you're looking to figure out how do I survive and how do I continue growing and then if I'm going to a bank what are some questions that a banker might ask me when I'm going to the bank that looked for getting access to additional capital so one of the questions would ask you is how are you how are you currently operating your business are you operating your business at full capacity or you closed or you're operating at just modified capacity one of the things we talked about if you're operating at a modified capacity you know maybe just you know just doing takeout for as for specific brewery example for a restaurant you know what is that what's the extent of that be get provide specific information around I yeah I do it money through through Thursday we don't work on Friday but we work Saturday and Sunday or or we work Monday Wednesday and Friday or Wednesday or Wednesday through Sunday and not working Monday and Tuesday so they're gonna be asking specific questions on how you're actually operating currently you're offering it at all right now you know if you're close and you're not opening right now how long how long will you be closed and when when does it projected time what do you think you'll be reopening and obviously that's always a tough question to answer because we really it's really hard to tell based on whatever triggers are when the and when the frictions will be lifted based on a shelter-in-place but I know in California right now we're for the most part everyone's in and in some level of phase two and then so that's really about probably made it pretty to project you know when you're being to open either full time or part time to start generating some additional revenue so that way you have the ability to make to repay any any type of credit request that you that you're asking for secondarily you know how and to what extent had the impact on your revenues and operations and your expenses currently what does that look like I you know like I mentioned in the beginning in the earlier slide our revenues been impacted by 20% this year versus last year or as impacted by 75% you know what is that like and what is it and what are you what's existing expenses the you know because obviously you really want to look at the type of you know if you have payroll expenses are you if your payroll expenses prior to the crisis your payroll expenses we're you know roughly $100,000 now you know after COBIT it has impacted you know instead of a hundred thousand dollars in payroll expenses now your payroll expenses are only twenty thousand dollars all right so you need to be able to understand that and when you'll be able to get up there and up to speed and how much or how are you able what's your ability to generate additional revenue to get back up to that you know seventy-five eighty nine hundred percent of revenues that you were custom to prior to the impact are you able to do that and do that successfully and I and do you have to do that in the phases is that going to be you know in two months time or is gonna week and 108 days time or is that looking at you know twelve months so looking to be prepared to be able to have some your finances together are looking at you know interim financial statements for the first quarter and and also interim statements up until like now this is the beginning of June so having interim statements up to it end of May 30 thirty first what would be helpful and then also being able to have your your end of your statements for 2019 so that way banks are able to take a look at your operations would look like in 2019 and so that way you can feel you know a little bit more comfortable with you know your ability to generate the revenues that you had pre pre coded it's really important next is you know are there any liquidity concerns how much cash do you actually have on a hand so a lot of times banks will look at you know looking at the amount of revenues that you're that you have that you're generating - your your expenses and then and then look at how much and divide that by the amount of cash you have on hand and to find out how many months of liquidity I've made operating capital you have beta sustain yourself for how many months so that's really important too because you know cash is king if you don't have cash how you're gonna be to generate revenue by you know products and services and materials to help support your business but also if you're able to bring the employees back do you have enough cash on hand to beta to take care of payroll to beta support your needs and operating your business effectively lastly when you're looking at from a crystal ball and I know it's it's really tough when you know banks ask you so where do you foresee any challenges we're experiencing over the next six to 18 months you know that's a so that's a great question right so nobody really really truly knows where they're gonna be six to 18 months but a really good business owner who's really involved in their business will be in it to take time to sit back and think about well what is my angle what does my business look like and as far as my operation it looks like and how would I what's their projected revenues I think I'm gonna be able to get over the next six to 18 months so that we can provide some accurate projections for a banker so they can figure out you know what was the big your ability to generate enough revenues beta to make make payments on the credit that you're requesting as well so it's really important to be able to understand your business to the point we're able to provide some some realistic projections know the in January and also beta project what your expenses amor look like as well to offset that - so it's really important as I mentioned to have a banker that really understands you as a business owner and really takes the time to really understand your your business not only just from the outside but really really take the time to review your financials with you help you understand exactly what but what some of the successes are when you see where your strengths rather and then also what are some weaknesses that you may need to look at make different decisions to help shore up some of those weaknesses to be a support you're looking to grow and the future might also be be ready to take on somebody strong credit as well months I would sell out my clients let's say hey let's figure out where you want to be in the next six No let's figure out how would you survive the next six to 12 months well this really didn't figure out how to really strive and have the light we look what for the next 12 to 18 months but based on your saying I'm just more like let's give a best case worst case in there for 18 months especially they're talking about a second wave with his colleague and we don't know how are done react so we got playing you know pray for the best we need a plan for worse at this point of time just could we simply don't know how things are going to be like he said we don't know there's gonna be a leash me recovery a double recovery or else you for coming so what you're saying is so important right now I'm really understanding where you are right now where do you stand on how keep your business schedule is prayer time is huge yeah and nothing is we really have to you know for small business owners I know it's really challenging right now you got a lot of things coming at you at the same time you got to figure out how you're gonna keep your business going you know how you gonna take care of your family well you got it there has to be some level of patience you know a personal restraint to really take the time to take a step back really understand what is in front of me okay and then and then what specific actions do I need to take in order to support my efforts in getting that business opera operating again at the level that it needs to in order for me debated to take to thrive as a small business but also be able to provide for my family so what that's going to take is think about it as a seven-course meal you know you're not going to eat all seven courses at one time because you'll get a stomach ache right so one thing is is really each course at a time take one phase at a time one course at a time to help support you and getting back on contract and part of that is making sure that you have the right bank you choose the right thing you choose a right banker and then you identify the right resources that's going to help support you and in taking your business to the next level and also helping your business beat and survive on this post-crisis time so those are some really important things that you need to think about and be patient though it's hard to do but it's something that's necessary there's a high level of discipline that's needed you know I know business owners are passionate about what they do every single day and I'm very impressed with small businesses that I encounter how passionate they are but also passion doesn't create success it's a part of it but the discipline and understanding your business and I'm saying in making the right informed decisions it's really the critical keys to success in helping the small businesses go into the future sucess I like that this plan is key I'm just right now that's just huge I think you see that a lot where you see more people get excited they don't know anything that goes along with it that plan that do the whole planning psyche not really taking about the big picture you right that's that's a good really good point so I just talked about what are some resources available to small businesses yeah the Small Business Development Corporation SBDCs the minority business development agencies those two agencies really help you be able to put a business plan together help restructure your business provide additional resources resources around financial literacy for small businesses and I think that's a key really key component for small businesses because and in some instances small businesses owners have really great ideas and that's the reason why they're entrepreneurial and but there's other fundamental blocks when I'm in the Box to being so successful and that's really really understand the financials inside and out from A to Z not leaving the financials just to a bookkeeper or or a trusted friend or family member but really taking the time to review the financials on a daily weekly monthly basis to really support your ability to make the right decisions and grow in the business obviously the Small Business Administration SBA is another great resource so supporting small businesses do you know SBA 504 and SBA 7a loans and also most recently the PPP loans so the great great resource for small business owners in addition to filthily and in smaller communities there's the Community Development financial institutions or our financial Development Corporation's call it FDCs or cdf eyes those are also great resources similar to the Small Business Development Corporation but they also have the ability to beta provide access to capital to small businesses and particularly in already small businesses and women-owned businesses as well so that's another great resource the support you know small businesses that may or may not be ready for a traditional bank loan but may but still need access to capital it's a great opportunity to leverage those CDFI FTC's because they also generally provide a educational component to that process as well and then also some of the community banks some of the community banks as I mentioned earlier the ones that are really truly invested in your community you know some of the smaller banks where you you they know you by first name that when you walk into the bank or you pick up the phone you know Joe or or or John or what have you will pick up the phone Sally will pick up the phone and answer your call where or if you need something you know maybe have their cell phone you pick up the phone yeah quick question or something that you need to get answered really quickly that you know that you that the trusted banker on the other line will pick up the phone and revive you that information timely so that's you know to me banks is really critical to the overall success of the economy but also super super critical for the overall success of small businesses as well and then lastly as I mentioned around you know technology advancement you know there's been a plethora of in tech companies that have come on into the market industry to really try to help some all business as well that are not ready for our traditional own they may be growing really fast and may not be eligible for a reg'lar traditional bank loan but they have enough have good cash flow the growing really fast but they just need this a little bit more assistance and you know FinTech companies are are good you know alternatives for lending for small businesses they get you up and running and get you over that hurdle until you're ready and get a stabilized you know revenues and expenses to be Dysport you to be able to get a traditional bank loan thanks so much those are really good things and definitely places where people should really do thinking about resources especially you have t e expect you save your estimate we can have over 2 million people file for bankruptcy in America and you say 2/3 of minority businesses want to fail I hate to hear that number especially I think right now I feel is we having a huge wealth gap and I think one pillar building wealth is through business ownership so this is huge great information that people really should take advantage of user information you give so I really appreciate that are you quite welcome and I think the other thing as you mentioned only is information access to information you know a lot of small business owners are potential entrepreneurs they have great ideas but they don't know what steps to take in order to get that get the business started or to be able to create a business plan their access to information to like a Small Business Development Center or I'm going to do this we're not a business development agency they really help you crack the idea put your business plan together and be to present it to get additional capital is really critical so you know access the information it's probably the most important thing to to help support small businesses in in the startup phase but also the access to continual information and capital is critical for the overall success and continued success for small businesses it's good to have these reasons like I said I think fish with was everything that's going on in this world a lot businesses you know you hear the stressful 60 minutes of people voices and lose hope and you just gave a lot of people hope inspiration there's some key tools how they can do the right thing which is rich I'm so thankful for you getting on the call tonight I think you had you know it's it's my pleasure you know you know I you know I think that's one my my charges are or our passion is really to help small business owners to be support there'll be a big support and a resource to them because the one thing that that I really love about you know meeting with small business is really trying to understand how did you come up with that idea for your business and then then just let them talk about and I I came up this idea I was in college and I saw their friend or was you know sitting and talking to someone I saw something I came up with this great idea to an enhance an existing product or service and then I just just ran with it so and that takes a lot of courage and a lot of discipline to be able to take an idea and then make it come to fruition in and then really nurture it and and watch a girl which is which is huge not everyone can do that definitely thank you again I mean thank you for hearing the call appreciate so much if you guys need a little more informational makes you look at our YouTube challenges in Matthew 20 more information during this great code over 19 thank you so much once again Robin appreciate it well thanks for having me Jason greatly pleased