Who's on Your Team?

BY: Craig Schmidt


If you have children in their twenties – or are in your twenties yourself – you might remember a short-lived cartoon named Teamo Supremo . It featured three superhero children who often needed the Governor to write them notes for missing school because they were fighting crime on behalf of the community. While the plot and the characters didn’t stick with me, I sometimes smile at the name Teamo Supremo in my head when people talk about building a team of professionals who can support your business.

Who is your own personal Teamo Supremo? When talking with small business owners, I often joke that your three best friends should be your banker, your accountant, and your lawyer.

Thinking About Doing it All Yourself?

Small business owners are naturally prone to the DIY lifestyle. It makes sense to bootstrap as much as possible to maximize margins and turn a profit, especially in those early years while you are still trying to get established.

However, unless you have legal or financial expertise yourself, the truth is there are a few professionals you simply can’t afford NOT to have on your team right from the beginning.

In short, some mistakes are harder to fix than others. Certain tasks allow for a learning curve and might even benefit from a bit of trial and error. However, other business principles aren’t as forgiving. For example:

  1. Legal. The way you legally organize your entity (i.e. Corporation, LLC, or DBA as a Partnership or Sole Proprietor) has distinct advantages and drawbacks, as well as significant financial and legal implications for the lifespan of your business.
  2. Taxes and Compliance. A certified public accountant (CPA) can keep you in compliance with income taxes, payroll taxes, social security, and other required or optional deductions. A CPA can also help you set realistic expectations for year-end or quarterly estimated taxes, so you are prepared instead of unpleasantly surprised.
  3. Banking. A community banker with experience supporting a variety of business sizes can help you with more than the basics of a deposit account, such as financing, online payment security, streamlining deposits, and protecting your assets, among other treasury management services.
  4. Insurance. Depending on your industry, insurance can be recommended or required, and an experienced insurance agent can help you determine what you need and what level of coverage makes sense. For instance, some agricultural lending programs require crop insurance.

How to Make the Most of Your Team

Most business owners create something they love to do, make, or provide. In support, your professional business team can:

  • Enable you to focus on your strengths and your passion for your business, rather than get bogged down in the areas that might hold you back from taking next steps
  • Free up your time to provide better customer service
  • Provide the expertise for weathering complex business challenges and unexpected economic downturns (such as helping you navigate a PPP Loan during a global pandemic)

But it is important to go beyond just assembling the right people and getting to know their names. You create a high-performing team by establishing an actual relationship among your experts and defining the parameters for that relationship.

  1. Share your goals. It’s a proven phenomenon that most people want to help others achieve their goals. However, the people in your circle often don’t know how to help because they are unaware of your goals and what you need to reach them. Keep your experts in the loop and watch them work on your behalf.
  2. Plan ahead. Your goal this year might be different than your long-term plan to sell your business or pass it down to create a family legacy. Let your team know your vision for the future so they can help you prepare. For example, I recently had a customer share that one of their children is interested in buying the business down the road. With that knowledge, I am able to help this family build the financial strength to qualify for financing and work toward saving a reasonable down payment. These are things that don’t happen overnight.
  3. Introduce them to each other. While there are confidentiality issues regarding some of your relationship with each advisor, it is helpful to meet as a group regularly so your team can work “as a team” more effectively and efficiently.
  4. Check in often. Much like a well check with your healthcare provider can catch problems early or even prevent issues from developing, a financial well check is a great way to maximize your organization’s financial health. Similarly, don’t avoid your experts when things aren’t going well. It might even be more important to talk to your team when you identify a potential problem that needs analysis, evaluation, and “treatment.”

The better we know you and know the experts you trust with your business, the better we can anticipate needs, point out opportunities, and help you avoid common obstacles. Specifically, some bankers will simply share what their bank can do. Find a banker – and other partners – who will figure out what you need and tailor the support accordingly. In other words, it should not be about what WE DO, it should be about what YOU NEED.

If you would like more information about whether we might be a good addition to your team of experts, call me directly at 608-445-7388 or email any time.

Author:

Craig Schmidt

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