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Mastering Success in Finance: 4 Essential Marketing Tips for Financial Businesses

Customer and consumer behavior is constantly evolving. While this is a good thing in terms of customer demand and engagement as people seek out new businesses and products, it can be challenging to know how to attract or maintain customers. When combining the now ever-present, globally based marketplace, it can become a stressful task to keep up not only with competitors but customers as well.

While much of this profitable mentality holds more to the traditional business model of offering products for a consumeristic demand, that does not mean that such marketing strategies don’t transfer to other business models. As a result, there is plenty that can be learned and adapted as a way to market as an accounting or finance institution. Still, one of the best and most foundational principles in marketing and communications degrees is to know your audience.

Here are 4 marketing tips to advertise your Colorado-based financial business.

READ: Cracking the Code of Business Marketing — 10 Strategies for Success in a Dynamic Landscape

1. Allocating a budget

While this may not be the most fun, exciting or creative process of a solid marketing strategy it is one of the most important. Quite simply, if a business doesn’t know how much it can spend then it runs the dual risk of overspending beyond its means or underdelivering on an investment that can generate great potential.

Taking the time to establish a consistent marketing budget is a great way to not only invest in the growth of a business but also a sound way of tracking how and when certain campaigns generate successful results and an increase in attention or customer engagement. Depending on the age of a business, companies are encouraged to dedicate more or less money towards an annual budget.

Newer businesses (1-5 years) may want to put greater percentages of their revenue towards marketing campaigns, but typically 20% of revenue with strategic planning generates good results.

READ: Unleashing the Power of Local Community Engagement — A Guide to Small Business Success

Marketing by age groups

It should not be a surprise that various generations maintain drastically different liquidity to use. But there is actually an emerging growth in the younger generations ability and interest to save, invest and spend money.

Much of this simply has to do with seasons of life: Baby Boomers invest less because they are nearer and in more need of money for upcoming retirement; Gen Z and Millennials are confident and tend to use a wide range of tools to diversify their income; Gen X invest less and put more of their money into living expenses.

Depending on who the target audience is will determine how to market a financial business.

READ: The Power of Data for Small Business — How Data Implementation Drives Business Growth

Choosing between Digital or Traditional Marketing

This is one of the first times in history that three-to-four generations are alive and well simultaneously while all having their own impact on the economy. While this is a wonderful fact to celebrate in terms of human wellness, it can become another complicated factor when determining where and how to reach customers.

Having narrowed down the demographics will help tremendously in this respect, being that younger generations are much more tech-savvy and connected. Since both traditional and modern digital marketing methods have pros and cons, most advertisers recommend a mix of old and new marketing strategies. Utilize design thinking and put yourself in the shoes of your consumers to help come up with the ideal marketing strategy for your product or service.

Implementing a plan

While this is less of a strategy than a step, it is an important factor to remember when developing and launching a marketing campaign. Having seen the other steps of budgeting, demographic studies and marketing styles, the next thing to do really is just to start with this idea in mind: only time will tell.

Even the cleverest campaigns on paper may not take place in real life so making sure that there are systems and tools in place to measure and track results is a step that cannot be overlooked. Without it, that well-earned revenue may be wanted on a marketing strategy that is a flop.

On the other hand, having these tools in place always leads to a greater understanding and ability to make smarter, more well informed decisions in the future.

 

Andrew Deen HeadshotAndrew Deen has been a consultant for startups in a number of industries from retail to medical devices and everything in between. He implements lean methodology and is currently writing a book about scaling up business.

Winning the Lottery of Life: Redefining Wealth and Happiness With Financial Planning

We all dream of winning the lottery, but what happens if you really do? A retired trauma nurse living in Colorado won close to $4 million and did …. practically nothing. He was content with his life.

Most of us will not win an actual lottery, but many more of us do win the lottery of life — meaning that we have the funds necessary to cover the necessities with some left over. All too often, we continue to focus on building wealth without thinking hard about the purpose of the money and what brings us satisfaction. A high net worth is wonderful, but what is its purpose if it doesn’t add value to your life and help you achieve deeply held aspirations?

READ: Mastering Work-Life Balance — Practical Steps for Entrepreneurs to Thrive

Having more money than you “need” puts you in a position to make something valuable happen, to bring a dream to life. That dream could be something you do for yourself, such as spending a year living in a cabin creating art, living in a foreign country or whatever moves you. Or it could be something altruistic — giving time or money to a cause that is important to you. Both types of pursuits can bring value to life.

Whatever you identify — whether self-focused or altruistic — requires money. A financial advisor’s role should be to help you maximize the chance that you will have the financial resources necessary to pursue the things you value, increasing your “return on life.” The measurement may be a steadily increasing net worth, but the goal should be to fund your life aspirations. 

READ: Financial Independence for Single Women — Trends and Strategies for Long-term Wealth

According to a recent Morgan Stanley survey, 57% of high-net-worth investors in the U.S. work with a financial professional. Interestingly, that same survey shows that the primary reasons investors hired a professional was for tactical help such as generating retirement income, deciding upon appropriate asset allocation, planning for long-term care and the like. This type of guidance is important but skips over the deeper purpose of the money. 

Why are you building wealth? Some people have thought deeply about what brings them joy or would give their lives meaning and know the answer immediately, but most of us don’t. Determining the purpose of money can feel more like therapy than financial guidance but is an essential first step to a financial plan. Otherwise, you will never know when you have accumulated enough money and your goalposts will constantly be moving. 

Imagine you have ten marbles and nine of them are blue. The blue marbles represent the things you “should” do, but the red one represents what you’ve always wanted to do but may not talk about because it doesn’t seem reasonable, necessary or “responsible.” Maybe you’ve always wanted to learn to fly an airplane or attend Le Cordon Bleu’s cooking school. Perhaps you want to figure out a way to help fight climate change or promote literacy. That’s your red marble. Too many people who have worked to achieve financial success die with that red marble still in their pocket.

The mission of financial advisers should be to help clients identify that red marble and maximize the chances that the red marble comes out of their pocket. Rates of return are important, but the ultimate yardstick is whether aspirations are achieved. A well-lived life is truly winning the lottery.

 

Matthew Kelley Gold Medal WatersMatthew Kelley is president and founder of Gold Medal Waters, a Colorado-based, fee-only financial planning firm. Gold Medal Waters focuses on creating a Purposeful PathTM to maximize the chance that clients will have the financial resources to achieve their deepest aspirations.  

Effective Debt Management for Colorado Businesses: Strategies to Navigate Economic Challenges

As rising interest rates and inflation slow the economy, many companies are struggling to pay back debt. Listed below are few best practices for navigating the current environment.

READ: How Do Interest Rates Impact Real Estate Investing? 

Be proactive

Communication is the key. Yes, it can be a tough conversation with your creditors, but the result will be far better than if one waits.

Gather trusted advisors like your CPA and business attorney, formulate a plan, then schedule a meeting with your creditors. Many local non-profits like the SBA, Small Business Development Centers and local Chambers of Commerce can be a great cost-free or mostly-free resource for advice.

Short-term loan modifications and/or accommodations are usually in everyone’s best interest. Everything is a trade-off for both parties so be willing to give something in return.

Build trust

Tell it like it is. Provide your creditors with realistic projections and updated financial data. By creating a realistic forecast and plan, you are addressing the challenges you can control. This will create a lot of goodwill with your creditors.

If your lender feels they cannot trust you, or that you may be deliberately concealing information, they will likely not wait to act, nor will they advocate for you. Ultimately, it may cost you your company.

READ: Financial Forecasting Insights from Founder and Fractional CFO, Dan DeGolier

Vendors

Your vendors are often providing their own credit to your business in the form of trade terms. Meet with them often and let them know you are doing everything in your power to stay current. Hiding from vendors creates more stress and won’t make the problem go away.

You might be surprised; even partial or reduced payments can go a long way toward maintaining trust and keeping your trade terms from being cut off.

Perform a 13-week cash flow analysis

This is the “go-to” cash flow metric and an important tool in the turnaround industry. The purpose of the 13-week cash flow analysis is to show where an entity’s cash is being generated (cash inflows), and where its cash is being spent (cash outflows), over a specific period of time.

Why 13 weeks? There are four 13-week periods in a calendar year. Essentially, it’s a deep dive into one quarter and an essential tool for crafting a turnaround plan.

READ: How Businesses Can Increase Cash Flow Predictability

What would you say it is you do here?

Presenting your lender with a well-thought-out business review plan may buy you time and build credibility. Most businesses in distress display more than one of the following external or internal signs of trouble.

  • Ineffective management or missing management pieces.
  • Over diversification or not enough diversification in product or service.
  • Poor pricing model and low gross margins leading to low or no profitability.
  • Weak financial controls.
  • Weak operational controls.
  • Poor lender and vendor relationships.
  • Market lag or change.
  • Precarious customer base — too concentrated or unprofitable clients.
  • Even ultra-fast growth is often a (funding and operational) problem that needs solutions.
  • Family vs. business matters.
  • Operating without a formal business plan.

Is it time for alternative lending?

The current environment is making traditional bank credit harder to obtain. Alternative lenders can be a good short-term bridge (1-3 years) back to more traditional bank credit while providing more flexibility to recover. Alternative lenders often trade off charging a slightly higher interest rate for giving entrepreneurs more freedom. Essentially, you’re paying for three things that can be effective tools for recovery:

  • Flexibility: Generally a lack of strict financial covenants and cash flow requirements.
  • Availability: Usually this means higher advance rates than a bank will consider, as a percentage of the value of your collateral.
  • Scalability: This is the ability of a business owner to very quickly increase or decrease the size of their loan facility or revolving availability as their business recovers. This is usually achievable with very little additional underwriting and can be approved much quicker than a Bank loan — think days, not weeks or months.

 

Andrew Wilhelmy headshotAndrew Wilhelmy is VP of Business Development for the Western U.S. at Seacoast Business Funding. Seacoast Business Funding provides up to $30 million in fast, flexible, and economical non-bank working capital lines of credit to growing companies and businesses looking for turn-around funding utilizing their Accounts Receivable and Inventory.

InBank Launches New SBA Lending Division as INTQ Financial

InBank, a growing independent commercial bank serving the Colorado Front Range, southern Colorado, and northern New Mexico markets, announced today that it has launched a new small business lending division branded as INTQ Financial (INTQ).

In a strategic partnership with NOVATRAQ®, a premier cloud-based software platform for small business lending, INTQ Financial will originate and service SBA 7(a), SBA 504, and USDA loans to borrowers nationwide.  This move follows the announcement in May 2023 that InBank was selected by the Small Business Administration (“SBA”) as the “Small Bank Lender of the Year” for the state of Colorado.

InBank plans to expand its existing SBA lending team and add additional resources to create the new division, which will be led by industry veteran Tim Romano as Managing Director of INTQ Financial.

“We are thrilled to be launching INTQ Financial to deepen our commitment to SBA lending, and to pursue new opportunities for InBank through INTQ Financial.  We aim to make the SBA and USDA lending process easier for small businesses, and we also plan to work in cooperation with other banks that don’t have SBA lending capabilities,” says Ed Francis, Chairman and CEO of InBank.  “We look forward to combining Tim Romano’s SBA lending expertise and the long-term relationship with NOVATRAQ to provide small business customers and bankers with the most robust and integrated small business lending solutions available in the marketplace.”

As a division of InBank, INTQ Financial will be headquartered in the bank’s Greenwood Village, Colorado location. In addition to its existing Colorado presence, INTQ has already begun its expansion plans with the addition of SBA Sales Executives in key markets for the company, including Arizona and Georgia, and expects to continue hiring experienced loan origination and servicing professionals to support its growth plans.

“This is a unique opportunity to build upon InBank’s Lender of the Year status in Colorado and grow it into a national presence,” says Tim Romano, Managing Director of INTQ Financial.  “I understand the vision that Ed Francis and NOVATRAQ’s founder and CEO, Louis Taylor, have for INTQ Financial — their shared commitment to excellence and customer experience — and I am looking forward to leading our team focused on executing that vision.”

About InBank

InBank is the wholly-owned subsidiary of InBankshares, Corp (OTCQX:INBC), a Colorado-headquartered bank holding company. InBank is an independent commercial bank growing throughout the Colorado Front Range and serving southern Colorado and northern New Mexico markets. At June 30, 2023, InBank had $1.30 billion in total assets. InBank offers a full suite of commercial, business, personal and private banking solutions with a focus on personalized service, technology and local decision-making. InBank was built on the entrepreneurial spirit and is led by a team of experienced banking professionals committed to the mission of positively impacting the lives of its customers, communities and associates. For more information, visit www.InBank.com.

Weathering the Storm: How the Colorado Cannabis Industry Can Thrive Amidst Market Disruption

A perfect storm of macroeconomic conditions, including higher interest rates and rising inflation, have combined with cannabis industry-specific challenges like a growing black market, increased competition from neighboring states and supply dramatically outpacing demand. This combination has led to plunging profits for the Colorado cannabis industry. 

Beyond their impacts on individual businesses, the challenging market conditions will no doubt result in significant structural changes to the Colorado cannabis industry as a whole. While the current environment continues to evolve, it is clear that the cannabis market of 2024 and beyond will look far different than the one of today. 

READ: Polis Administration Announces Cannabis Business Loan Program

Although it’s difficult to predict where the market is headed with any real certainty, it’s critical for cannabis businesses to take a look at their own operations to identify how they can position themselves to both endure in the short term and thrive in the long term. 

In the short term, consider the steps below. 

Take stock of your financial position

Every decision you make about your cannabis business today must flow from a realistic, honest internal review of your current financial situation. Evaluate the impact of a prolonged slowdown on revenue, cash flow and profitability. This will provide a clear understanding of the resources available for sustaining operations during the downturn. It’s also important to use this time to build or enhance your finance and operations foundation to aid in making critical decisions during these uncertain times.

READ: Navigating the Economic Crossroads — Fed’s 11th Rate Hike and Its Impact on Investments in 2023

Revisit financial forecasting

The assumptions made during boom times need to be given a second look through an updated lens to ensure they remain accurate for today’s market. It’s also a good idea to make contingency plans that factor in worst-case scenarios and other potential challenges. 

Make the tough decisions

Cutting costs is an unfortunate yet necessary step during slowdowns. Every business has non-essential or discretionary expenses that can be reduced or eliminated, including renegotiating contracts and finding efficiency improvements. In addition, identify areas of your business where outsourcing could make financial sense. For example, some businesses will elect to find third parties for their accounting services and finance needs.

While these are often triage steps to survive the downturn, it’s important to also think long-term and identify the steps that can be taken to better position your company to succeed in what looks to be a much smaller and more concentrated market. 

READ: How to Prepare Your Business for Success in 2023 — Financial Forecasting Insights from Fractional CFO, Dan DeGolier

Strengthen governance and controls

A strong governance and control culture stands at the heart of every successful business. By ensuring your company’s financial and operational processes are well-documented, transparent and compliant with relevant regulations, you can run a far more efficient and profitable organization in both good and bad times. It also helps to prevent fraud and mismanagement.

Additionally, companies with strong governance and controls will stand out above the competition in a tighter credit and investment market. If you are anticipating a need for additional working capital or hoping to be purchased, strong governance and controls will be critical to demonstrate your organization’s stability and potential for long-term viability and success.  

Reevaluate investment decisions

Depending on the type of cannabis business you are running, your capital needs can be quite extensive. However, tight credit markets, rising costs and overall uncertainty can make planning for strategic investments in your business difficult. Analyze your needs and postpone or scale back projects that are not critical to current operations or strategic goals. 

READ: How to Maximize Your Investment Potential — Asset Diversification Strategies and Allocation

Find the exit

If you’ve thought about the steps above and the pathway to survival looks insurmountable, begin planning for an exit strategy. Consulting with legal, accounting and other experts can help you understand your unique situation and the available options to get out with as much of your investment left as possible. The methods of exit range from outright sale of the business to liquidation of assets or intellectual property. In your unique situation, every option should be on the table. 

The bottom line

As the Colorado cannabis industry navigates uncharted territory, business owners must contend with these complex decisions, steering their businesses through the storm with a combination of short-term considerations and long-term strategic vision. The evolving landscape holds both challenges and opportunities, and those who respond with agility, insight and a commitment to adaptability stand a better chance of navigating the shifting currents to become a key piece of the Colorado cannabis industry. 

 

Kevin Mclaughlin headshotKevin McLaughlin is a Managing Director at Centri Business Consulting, LLC and is the leader of the Cannabis Practice. He has over 10 years of public accounting and consulting experience. Kevin specializes in supporting clients with documenting the accounting treatment of various transactions, including complex debt and equity analysis, acquisition accounting process integration, and due diligence. 

Exploring the Evolving Role of Accountants — Embracing Technology and Shaping the Future

Accountants, the bedrock of financial stability and transparency, have long been entrusted with the responsibility of meticulously managing the numerical narratives that define business success. However, their role is far from static. In an era where technology’s relentless march shapes the contours of industries, the evolving role of accountants is undergoing a metamorphosis.

Beyond traditional bookkeeping and payroll, a new horizon beckons, one where accountants are poised to harness the power of emerging technologies and redefine their roles in profound ways. This article embarks on a journey into the evolving role of accountants, exploring the uncharted territories of their evolving landscape in the digital age.

READ: Future-Proofing your CPA Firm — 4 Tips for Anticipating Trends and Preparing for Change

Evolving role of accountants 

Gone are the days when accountants were confined to their calculators and spreadsheets. The digital revolution has thrust them into a new spotlight, where their expertise extends far beyond number-crunching. Today, accountants are becoming strategic advisors, guiding businesses through complex financial landscapes. They’re not just recording the past; they’re shaping the future.

According to a report by the World Economic Forum, by 2025, the role of accountants will have evolved significantly. They won’t just be crunching numbers; they’ll be deciphering data to provide insights that drive decision-making. Their role will encompass advanced analytics, collaboration with various departments and a deep understanding of the business’s strategic goals.

In light of these evolving demands, businesses can greatly benefit from the expertise of knowledgeable accountants. To navigate this changing financial landscape with confidence and foresight, consider seeking guidance from experienced professionals.

For instance, future-proof accountants from Powder Bookkeeping, a trusted resource in the field, provide valuable insights on how businesses can adapt to these trends.

Technology as support, not replacement

As technology’s influence grows, there’s a common concern that machines will replace humans. But when it comes to accountants, this isn’t the case. Instead of replacing them, technology is becoming their trusted sidekick.

The Covid-19 pandemic was a litmus test for accountants’ adaptability. With remote work becoming the norm, they embraced digital tools to ensure business continuity. According to a survey by Sage, 87% of accountants believe that technology has made their jobs more engaging and has allowed them to focus on tasks that add real value to the organization.

Key technologies transforming accounting

  • Cloud Computing: The cloud isn’t just about storing data; it’s about transforming how businesses operate. For accountants, it means easy access to real-time data and collaboration with colleagues across the globe. Forbes predicted that by 2020, 83% of enterprise workloads will be in the cloud.
  • Automation: Automation is liberating accountants from tedious manual tasks. Instead of spending hours on data entry, they’re now analyzing trends and identifying opportunities. The Institute of Management Accountants reports that 90% of professionals believe that automation will enhance their roles by allowing them to focus on strategic decision-making.

READ: Maximizing Efficiency, Minimizing Errors: Harnessing AI and Automation in Your Marketing Strategies

  • AI and Machine Learning: Artificial Intelligence isn’t here to replace accountants; it’s here to enhance their capabilities. AI can process massive amounts of data at lightning speed, providing insights that were once buried under layers of information. The International Data Corporation predicts that global spending on AI will exceed $110 billion by 2024.
  • Blockchain: Beyond cryptocurrency hype, blockchain is finding its way into accounting. Its ability to create a secure and transparent ledger has enormous implications for auditing, record-keeping, and data integrity. Deloitte’s Global Blockchain Survey found that 55% of respondents view blockchain as a top strategic priority.
  • Virtual and Augmented Reality: These technologies are no longer confined to gaming. They’re entering the world of accounting, allowing professionals to visualize data in new ways.

READ: How the Metaverse is Revolutionizing Industries — From Sci-Fi Fantasy to Digital Reality

The evolving skill set of accountants

Accountants aren’t just number wizards; they’re becoming adept at various skills to thrive in the digital age. In addition to technical skills, accountants are honing soft skills like critical thinking, communication and collaboration. These skills are crucial for interpreting data, communicating insights, and working seamlessly with cross-functional teams.

Collaboration and strategic involvement

Accountants are no longer confined to the back office. They’re moving to the forefront of decision-making, collaborating with departments across the organization.

Their financial acumen is vital for understanding the implications of different choices and steering the business toward success.

A study by the Association of Chartered Certified Accountants (ACCA) found that 67% of organizations recognize the strategic importance of accountants in shaping business plans and driving innovation.

Embracing lifelong learning

The digital transformation isn’t a one-time event; it’s a continuous journey. As technology evolves, accountants must evolve with it.

A report by McKinsey emphasizes that the demand for advanced IT and programming skills will rise significantly by 2030. To stay relevant, accountants need to embrace lifelong learning, continuously updating their skill sets to keep pace with technological advancements.

A stronger future for businesses and accountants

Embracing digital transformation isn’t an option; it’s a necessity for businesses to remain competitive.

Accenture predicts that AI could double annual economic growth rates by 2035. The evolving role of accountants plays a crucial part in this growth. Additionally, according to a study by Robert Half, 67% of CFOs believe that accountants will have an even greater role to play in the next five years.

Their ability to provide strategic insights, interpret data and collaborate across departments positions them as key players in a digitally transformed business landscape.

So, what does the future hold for accountants?

The evolving role of accountants is a tapestry woven with technology and strategic insight. As they venture into uncharted territories, they’re not just embracing change — they’re shaping it.

The digital impact isn’t a hurdle; it’s a gateway to a more dynamic, relevant and evolving role of accountants.

By harnessing the power of emerging technologies, embracing continuous learning and collaborating across departments, accountants are poised to lead businesses into a future where data isn’t just numbers; it’s a roadmap to success.

 

Joel Okello headshotJoel Okello is a data enthusiast turned copywriter. Armed with a Master’s in Applied Statistics from Maseno University, he spent five years crafting compelling content for diverse websites in niches like Home Improvement, Tech, Cooking, Finance, Beauty, and Digital Marketing. From decoding data to crafting niche content, he blended statistical expertise with writing finesse to engage and inform. His fascination with language and technology fuels his drive to help users access valuable information.

Financial Independence for Single Women: Trends and Strategies for Long-term Wealth

It is hard to imagine that in 1974 women were just being given the opportunity to have a credit card in their own name and secure a mortgage without a male co-signer. Fast forward 50 years and women have made huge financial strides. For example, single women now make up 17% of all homebuyers, compared to single men at just 9%, according to the National Association of Realtors (NAR). In addition, women are poised to inherit a large share of the $30 trillion that will be passed down from baby boomers, according to Investopedia. 

As financial considerations and options continue to shift and evolve, being mindful of personal priorities, goals and choices is paramount to success. Knowing where you are, where you want to be and what it will take to make it there requires focus and intentionality. Consider these strategies to ensure you’re set up for financial success now and in the future. 

READ: Becoming a Stay-at-Home Parent — Navigating the Pros, Cons and Financial Implications

Financial considerations for the single woman 

There is an abundance of financial advice and best practices for the traditional family. However, there are specific nuances to keep in mind if you fall outside this category. Establishing a plan based on personal goals and needs is essential in ensuring you are using your wealth to its full extent. Here are a few things to keep in mind:

  • Identify your financial priorities. Whether you want to travel, buy a home, continue your education or are ready to retire, making a list of your short- and long-term goals and aspirations will help ensure you can achieve them.
  • Establish a financial plan. Determine your current budget and any disposable income. Make sure you are tracking your current income and spending. Monitor your savings to make sure you have an adequate amount of emergency savings as well as an appropriate plan for any long-term savings goals. Carefully evaluate any current or future debt and how it will affect your overall cash flow.
  • Address important financial commitments. Outside of your personal finances, plan for other potential financial commitments like caring for elder parents or family members, or upcoming major purchases.

READ: Securing Your Financial Future — Key Considerations and Questions for a Solid Plan

Create financial security with multiple income streams

According to the Pew Research Center, women have surpassed men and now account for more than half of the college-educated labor force in the U.S. Despite the increase in women attending and graduating from college, there is still a significant gender gap in pay that has remained relatively stable over the past 20 years. In 2022, women earned an average of 82% of what men earned, according to a Pew Research Center analysis. 

For these reasons, women may choose to have multiple streams of income to create financial security. Additional income doesn’t just mean a second job — it can come in many forms, including rental properties and passive income like investing in the stock market. If you choose to have multiple streams of income, it’s important to work with a financial advisor to ensure your financial plan encompasses these activities, and you are set up for success when tax season comes around. 

Saving for retirement should be a priority

Regardless of your age or marital status, saving for retirement should still be a priority. In the U.S., the average life expectancy of women is 79, which is six years more than men. For these reasons, saving for retirement is even more important to ensure you have a plan to live out your golden years in comfort. 

READ: What Does the Secure 2.0 Act Mean for Retirement Planning?

Here are a few steps to consider when starting a retirement savings strategy: 

  • Determine your unique needs. A common standard for post-retirement income is 70% of the annual salary you made while in the workforce. The average retirement lasts about 20 years, so you should plan to fund at least two decades of post-work life. 
  • Review your options. There are a variety of retirement plans to choose from that may provide tax benefits including:
  • Set your goals and begin saving. Start the habit of contributing a small amount from each paycheck. Using an automatic payment, like a direct deposit into your account, helps you establish regularity and enables you to consistently save. 

Being financially independent is something to be proud of, and should be protected so you can fully maximize and enjoy what you have earned. Working with a financial advisor and understanding how you can best plan and save to support your goals will help ensure you are achieving that throughout your life. 

 

Gattis KimAs a financial planner, Kim Gattis is responsible for creating dynamic plans for individuals, families and business owners. As part of the wealth team, she helps clients identify their life priorities, and assists them with formulating a plan to meet their specific needs while helping them find direction and meaning through the process of wealth accumulation, preservation and transfer. Kim joined UMB Private Wealth Management in 2009. 

Real Capital Solutions Acquires $188M Medtronic Lafayette Campus

Real Capital Solutions (RCS), a real estate investment company based in Louisville, has acquired the Medtronic Lafayette Campus from Ryan Companies for $188 million. The acquisition consists of two five-story life science office buildings located at 200 & 250 Medtronic Drive, at the intersection of HWY 287 and Northwest Parkway. The 42-acre, 404,159 square-foot property was completed earlier this year and is Medtronic’s second-largest U.S. campus, which will eventually house about 1,200 employees. As the sole tenant of the property, Medtronic, the number one medical device company in the world, has guaranteed a 20-year triple-net lease.

READ: How Life Sciences Are Fueling the Real Estate Demand in Colorado

“This was a rare opportunity to acquire one of the only purpose-built life science assets in Boulder County,” said Marcel Arsenault, Chairman, CEO and Founder of RCS. “We have a long history of investing in Colorado real estate, especially when it’s in our backyard. RCS is focused on high-credit, single-tenant net lease deals and Medtronic fits this profile perfectly. This deal is extremely safe and ensures our investors receive a stable, safe cash flow over the coming challenging years.”

The timing for the deal comes at a point when commercial real estate is seeing values erode in nearly every sector. RCS has been positioning for this downturn for some time, selling much of its at-risk portfolio, amassing cash and investing in similar high-credit, single-tenant net lease deals for itself and other ultra-high-net-worth families who are concerned about preservation of their capital.

“Not many companies are able to do a deal this size,” said Adam Abeln, Chief Acquisitions Officer for RCS. “We can because of our financial strength and sellers know we are capable buyers. Near-term, we believe commercial real estate values, especially in multifamily and office, will fall and defaults will rise. The next six to 18 months will be tough for many owners, particularly those who will need to refinance. We have strong relationships with lenders and plan to be major buyers, especially here in Colorado.”

 

Real Capital Solutions is a highly entrepreneurial real estate company that invests smart capital and provides practical solutions for real estate opportunities. The company has purchased and managed more than 370 real estate assets, totaling approximately $3.5 billion in acquisition value. RCS currently owns 70 properties with over $2.0 billion of assets under management.

Navigating the Economic Crossroads: Fed’s 11th Rate Hike and Its Impact on Investments in 2023

To no one’s surprise, the Federal Reserve raised short-term interest rates again during their July meeting. This was their 11th increase since the spring of 2022. As expected, the Fed Funds rate went up 25 basis points, or a quarter of 1 percent. The new rate is 5.25%-5.50%.

What remains unclear is whether this is the last interest rate increase for the current tightening cycle. If inflation continues to come down to the Fed’s 2% target, then it probably is. However, we won’t know until the end of the year because Federal Reserve Chair Jerome Powell will most likely keep his options open and the markets guessing. Rate decisions will be data-dependent, primarily on the monthly unemployment, PCE and CPI numbers. The great news is that inflation has improved from over 9% annually in the spring of 2022 to 3% today, so interest rate increases have worked to bring down inflation. 

As a result of this improvement in inflation, there is now a lot of discussion that we won’t have a recession in 2023 and Powell will have accomplished a “soft landing” that no one expected as recently as a few months ago.

READ: Finding the Silver Lining Amidst Rising Interest and Inflation Rates

So, what does this mean for investors investing in the stock and bond markets?

Stock Markets

The rally in the stock market in 2023 is reflecting a Goldilocks economy: not too hot, and not too cold. This rally began in earnest right after chip maker Nvidia released their blockbuster earnings report in May. This ignited a massive rally in AI and technology stocks. However, over the last month, this rally has broadened out to other sectors of the market, which is what is needed to keep the new bull market alive. Whether this can continue will depend on corporate earnings, inflation, and interest rates. So far, so good.

As I mentioned in my June article, there are other sectors of the stock market that are attractive. Dividend-paying stocks in the healthcare, financial, energy and industrial sectors look inexpensive compared to AI and technology stocks. Even international stocks are attractive and are trading at an average price-earnings ratio of 13 versus the S&P 500 Index Fund with an average PE ratio of 23.

Bonds & Money Market Funds

For investors who don’t want to buy stocks, bonds are a good alternative once again. Riskless short-term treasury bills yield 5.5%; money market funds and investment-grade corporate bonds pay 5%. If investors want to take more fixed-income risk, they can buy high-yield bonds that pay over 8%. Bond yields haven’t been this favorable since 2008 and the financial crisis.

The Fed will meet again September 19-20. Today the stock market is telling us there will be a soft landing in lieu of a recession, and no more interest rate increases for the rest of the year. It is difficult for investors to trust these rosy scenarios, jump on the bandwagon and chase this rally, particularly if they have been sitting on the sidelines. We could see a serious case of FOMO (“fear of missing out”) by the end of the year, and this is like adding gasoline to a fire.

Investors tend to hate watching the markets go up without them. This is why market timing is impossible. As our Beacon Pointe Chief Investment Officer likes to say, volatility is the price we pay to make money in the markets. However, if these three assumptions are wrong, whatever positive gains we have seen so far this year could evaporate. Being an investor is not easy.

 

Thumbnail Fred Taylor HeadshotFred Taylor is a Partner, Managing Director at Beacon Pointe Advisors, LLC. The information contained in this article is for general informational purposes only. Opinions referenced are as of the publication date and may be modified due to changes in the market or economic conditions and may not necessarily come to pass. Forward-looking statements cannot be guaranteed. Past performance is not a guarantee of future results. Beacon Pointe has exercised all reasonable professional care in preparing this information. 

Assessing the Value of an MBA for Future Entrepreneurs: A Cost-Benefit Analysis

Entrepreneurship has never been more accessible than it is today. There are so many low-overhead online businesses that entrepreneurs can start, plus more options than ever for connecting with people who want to invest in growing startups.

With that said, being a successful entrepreneur is far from easy. In the beginning, most new business owners really have to get their hands dirty and handle every part of the process, from providing a product or service to understanding tax withholding. 

So, what kinds of skills and education are needed to build and sustain a successful startup? Do new entrepreneurs need an MBA (Master of Business Administration) degree to have the best chance of success? Let’s take a look at the cost-benefit analysis. 

READ: From Employee to Entrepreneur: Top Tips for Making a Successful Switch 

Understanding the MBA degree 

Each MBA program is slightly different, but the main goal of these programs is to give students a comprehensive understanding of how businesses run and the tools they need to be successful as strategic administrators or entrepreneurs. Generally, students will learn about the following topics in an MBA program: 

  • Operations management — business processes required to keep a business running 
  • Marketing — market research, customer behavior and communications
  • Strategy — long-term planning for larger business goals 
  • Finance and accounting — money management
  • Product management — product development and the role of demand
  • Business ethics — understanding what is and isn’t ethical within domestic and international business 
  • Behavior management — team dynamics and behavior for managing people

Some schools also offer courses in topics like innovation and entrepreneurship. Some classes are required for all MBA students, while others are elective courses based on the student’s goals and interests. 

READ: What Are the Safest Industries to Start Your First Business in 2023?

The benefits of an MBA for entrepreneurs

Getting an MBA can make a lot of sense for future entrepreneurs. The most significant benefit is that it provides a solid foundation of knowledge and a suite of skills that can make running a business easier. Instead of learning everything on the fly, entrepreneurs will already undersstand the basics and can progress more quickly than their self-taught peers. 

Another major benefit of pursuing a master’s degree in business before becoming an entrepreneur is networking opportunities. MBA programs are full of ambitious and intelligent people who want to make connections. Those connections forged during a master’s program can lead to lots of opportunities later on. 

MBA students will get lots of real-world business examples they can learn from, which can help when they face challenges and opportunities in their own businesses down the line. Mentorship and guidance are also available, which can be another resource even after graduation. Some students also get internship opportunities for real-world experience. 

READ: Maximize Your Impact — The Power of Intentional Network Building

Evaluating the logistics and costs of pursuing an MBA

There’s a lot of potential value for entrepreneurs in earning an MBA. However, if it was easy or inexpensive to earn an MBA, almost every entrepreneur would do it. The costs and logistics involved can be a major roadblock that ends up reducing the overall value of getting a degree. 

First, the actual cost of an MBA: Tuition, fees and other expenses are an upfront investment that may or may not pay off. If someone gets an MBA and goes on to start a business but then ultimately decides that entrepreneurship isn’t for them, they might not recoup their investment and have lots of debt to pay off. 

There’s also the opportunity cost of getting an MBA. The hours dedicated to schoolwork and classes can’t be spent on other activities, such as work, personal enrichment or relaxation. Those hours invested might be worth it in the long run, but they do require sacrifices in the short term. 

READ: Avoiding Founder Burnout: A Guide on Fighting Hustle Culture for Entrepreneurs

Analyzing potential career advancements with an MBA

So, what’s the cost-benefit of an MBA for entrepreneurs? Does it make sense for those who want to run their own businesses to get an advanced degree? It depends. 

An MBA can be helpful for career growth and opportunities for those looking for traditional employment. However, entrepreneurs don’t really need someone else’s stamp of approval to start their own businesses. 

With that said, having the foundational skills and professional network that an MBA provides can be extremely valuable for entrepreneurs. Sometimes, it can also help to have a business degree in terms of attracting investors and understanding growth strategies.  

To MBA or not: a personal choice 

The cost-benefit analysis of an MBA looks a bit different for each person. Those who have dipped their toes into entrepreneurship might choose to go back to school after they’ve already started their businesses. Some have their education sponsored by an employer. Others decide to use free online resources and go it alone.

There are lots of options for business education. An MBA can be a great way for entrepreneurs to set themselves up for success. For others, learning along the way makes the most sense. 

 

Andrew Deen HeadshotAndrew Deen has been a consultant for startups in a number of industries from retail to medical devices and everything in between. He implements lean methodology and is currently writing a book about scaling up business.