Category: Business

7 Ways to Improve the Health of Your Business

by Vince Liuzzi
Executive Vice President and Chief Banking Officer
DNB First

We live in a health-conscious world. If we’re not stepping on the scale or analyzing labels on groceries, we’re counting steps and calories on pedometers in order to live longer and healthier lives.

However, what many of us, at least those who own businesses, neglect, is regular assessment of the health of our businesses to maximize their longevity, too. It’s not difficult. and you don’t need a scale, a pedometer, or even a doctor. You simply need to look at your cash flow.

Cash flow is one of the most important predictors of business health. If you have positive cash flow (more money coming in to your business than going out), your business is likely in good shape.

Here are some important exercises to help improve the health of your cash flow – and ultimately, your business:

  1. Know where you stand. At any point in time, you should know your cash position. If you’re spending more money than you’re bringing in, it’s time to take a long hard look at the future of your business. Online and Mobile Banking services are quick, convenient ways to help manage cash.
  2. Cut expenses. A key part of understanding your cash flow is knowing and understanding your expenses. Be sure to track monthly expenditures and regularly think about ways to reduce them.
  3. Expedite collections. One of the biggest culprits behind cash flow problems is managing receivables. Do customers pay your invoices in a timely manner? Many banks offer cash management services that help you collect and manage customer payments more efficiently.
  4. Accept credit or debit card payments. Another way to improve collections is to offer customers convenient ways to pay, including debit and credit card payments. With these merchant services, funds are deposited into your account quickly, maximizing cash flow.
  5. Deposit funds more efficiently. If your customers pay by check, utilize Mobile Deposit or Remote Deposit, which allow you to deposit checks more conveniently, eliminating trips to the bank and providing faster access to your funds.
  6. Maximize idle funds. Don’t leave extra cash sitting in an account where it doesn’t earn interest. Sweep accounts allow you invest those funds and put idle balances to work for you.
  7. Pay efficiently. Use electronic services to pay suppliers and other vendors more efficiently. By scheduling automatic payments on the dates they’re due, you’ll get full use of the funds for the maximum amount of time.

At DNB First, our knowledgeable business specialists are available to review your cash flow position, and suggest ways to strengthen the health of your business. And the best part is, they won’t make you step on the scale!

 

 

When Soaring College Costs Hit Home

“Poverty is hereditary – it comes from your children.” 

Comedian Phyllis Diller may have been joking when she said that, but anyone who is raising a child today knows that there’s nothing inexpensive about having kids. In fact, according to a report from the U.S. Department of Agriculture, “it will cost an estimated $241,080 for a middle-income couple to raise a child born last year for 18 years.”

If that doesn’t shock you, consider an even more eye-opening fact: that figure doesn’t include one of the most expensive costs for parents – financing a college education. According to The College Board, an “in-state public college for the 2013–2014 academic year averaged $22,826 while a private college averaged $44,750.” In the last 30 years, college costs have quadrupled.

A shared burden

The burden of financing college education isn’t just falling on parents; today’s students are amassing significant debt.  As the infographic below shows, the average student graduates with nearly $25,000 in debt, giving them an uphill climb on the road to financial success.  The burden of this debt may be why they delay getting married and purchasing homes.

So how can parents help their children finance the costs of college and fill the gap where Financial Aid and other student loans leave off? One popular solution is actually close to home — home equity credit. With home equity, parents can borrow off the equity in their homes to pay for college costs, and take advantage of some very significant benefits, including:

  • Lower rates than those available with private student loans.
  • Potential tax savings.
  • The ability to borrow and repay funds with a home equity line.
  • Interest-only options to keep payments low.
  • The flexibility to use funds to cover any educational expense — from books to computers to room and board and tuition.

Here to Help.

At DNB First, we have competitive home equity options, including a special  rate on a home equity line.  Stop by or call us today to learn more. Of course, as with any financial decision, it’s important to carefully weigh your options. After all, college is one of the biggest investments you will make as a parent, so you’d better do your homework.

10 Mind-blowing Facts About The Cost of College TuitionCreated by: TakeLessons

Employee Engagement 2.0 – A Holistic View of Engagement in Today’s Workplace Environment

Statistics show that 78% of business leaders rate employee retention and engagement as critical or important to the success of their business. Organizations are looking for new and different ways to understand and improve employee or team member engagement. Effective and meaningful, active employee engagement is truly a competitive differentiator for the high performing business.

Active employee engagement goes far behind an annual survey facilitated by human resources that companies use as a measurement for employee morale. It speaks to the culture an organization fosters, and its willingness to make the right investments within the environment benefitting much-loved employees.    In a recent study by Deloitte, three key areas of strategic focus on employee engagement were identified: Lead and Develop, Attract and Engage, Transform and Reinvent. These three priorities go far beyond a typical survey “temperature check” followed by an executive summary turned into an action plan – many companies still call that an engagement program. Its en excellent study with rock solid conclusions and some pretty interesting tools and resources.

In past decades, Gallup and other leadership organizations have led the way around the concept of employee engagement program surveys. Employee engagement has in reality, been a topic companies have considered since the industrial revolution. These concepts were essentially rooted in the late 1800’s by an industrial engineer Frederick Taylor who was looking for ways to improve industrial efficiency. In his book “The Principles of Scientific Management” Taylor theorizes that four principles of scientific management center around the engagement of employees and how their attitude impacted productivity in the steel industry. It was ground breaking work for its time – but that was over 100 years ago!

Developing, enhancing and maintaining a high performing work environment is truly a complex issue to tackle. It blends an organization’s mission and values with its people, culture and performance. Once people join an organization, companies must continuously improve, redesigning and developing the work environment to make it more enjoyable and rewarding, making the employees happier and more productive. In today’s environment, companies need to update the way they look to engage employees. With the influx of younger workers and the proliferation of technology, organizations need to change the way they think about engagement making the workplace environment more flexible, modern, humane and enjoyable. Organizations must build an environment that is fun, meaningful, stimulating and rewarding to attract and retain high performing employees in today’s workforce.

Forward thinking companies truly understand the critical need to go beyond traditional engagement survey programs to create more productive and successful work environments. They design jobs, change the work environment, add benefits, invest in people and develop managers.  New employees hired into these organizations are screened for culture and job fit to ensure success. Effective hiring, on-boarding, training and development programs have never been so important.

Josh Bersin Principal and Founder of Bersin by Deloitte was recently quoted in a recent study published by Forbes magazine stating, “Let’s change our thinking and move beyond the concept of engagement. If we really achieve the goal of making organizations “irresistible”, we can make work fun, meaningful and enriching for everyone.”

Vince Liuzzi

EVP, Chief Banking Officer

 

DNB First, Banking since 1860

Community Banking – a critical role in the US economy

Recently, I made the switch from a mega-national bank to DNB First, an authentically local, community-based bank in the Greater Philadelphia suburbs operating in the region since 1860. It’s been an absolutely wonderful experience and I am left wondering why it took me so long to make the switch!
Some well known mega banks deliver products, services and pricing nationally, and yet attempt to compete and win business on a local, market level. Few are successful in keeping the customer at the center, maintaining local focus and presence, while complying with national big-bank policies, procedures and expectations. Customers can get lost in the shuffle.

I came across this article about local banking and the impact it has on the economy, and the community we live and work in. The article highlights some of the obvious (and not so obvious) comparisons between community and mega-banks. Of course selecting a financial services partner is an important and highly personal choice. At the end of the day, consumers must work with those trusted professionals that are committed to helping them achieve their most important hopes, dreams and desires.

The article cites some pretty important distinctions to make when evaluating financial providers.  Read more…..

Vince Liuzzi
EVP, Chief Banking Officer at DNB First

Community-based banks have long played a critical role in the U.S. economy and this has never been more important than in today’s unprecedented times. The central principle driving community banks is “The Relationship”.

This approach provides customers financial services based upon the ongoing personal interactions that improve the flow of information, resulting in an understanding of all of your financial needs and allowing for customized solutions.

  • Community bank executive officers, including the President & CEO, are typically accessible to their customers. Megabank CEOs are headquartered in far-away office suites with little customer dealings.
  • Community banks focus attention on the needs of local businesses. Conversely, many of the nation’s megabanks are structured to place a high priority on serving large corporations and investment banking activities on Wall Street.
    Community banks are strong supporters of local nonprofits both with their dollars and volunteer hours.
  • Community banks channel most of their loans to their depositors’ neighborhoods, helping to keep local communities vibrant and growing. Megabanks may take deposits in one state and lend in others.
  • Community bank executives and directors typically are deeply involved in local community affairs, while large-bank executives are likely to be detached physically and emotionally from the communities where their branches are located.
  • Many community bankers are willing to consider character, family history and discretionary spending in making loans. Megabanks, on the other hand, often apply impersonal qualification criteria, such as credit scoring, to all loan decisions without regard to individual circumstances.
  • Community bankers can offer nimble decision-making on business loans because decisions are made locally. Megabanks usually have limited loan decision-making authority at the local level.
  • Community bank boards of directors are local businesspeople, leaders and your neighbors who often played a role in starting the bank. It’s unlikely that big bank corporate board members live, work or operate businesses in your neighborhood.

 

Essential Executive Leadership Skills – Recognizing Talent

The most effective executive leaders understand that future success depends on hiring the most talented individuals possible. Considering the impressive array of new technologies available to help companies as they expand, some leaders may begin to put less emphasis on recruiting top talent. This mindset, however, proves extremely limiting. When a mediocre employee interacts with advanced technology, the result is still mediocre work. In today’s competitive market, forgiveness margins for mediocrity have dwindled.
download (2) Continue reading “Essential Executive Leadership Skills – Recognizing Talent”

Gratitude – the highest ROI management tool?

Recently, I read an article written by the CEO of Linkedin about a management tool that provides the highest return on investment, and is a proven driver of workplace productivity.

What was that tool you say? “GRATITUDE”. Yes, gratitude… How simple – authentic and genuine gratitude was named as the most effective management tool providing the most significant return.

I’ve always believed that happy, and engaged team members are more productive, provide better service and generate more revenue for the organization. It seems so natural that gratitude should be named as a motivator and driver of outstanding leadership in breakthrough performance.

So in this season of thanks and appreciation, it is very appropriate to leverage this great tool and give thanks for our many blessings at home, out in the community, and also to those we spend so much time with at work. When you see it, say it! Share your thanks and appreciation. The next time someone compliments you on a job well done, try grounding yourself from the feet up, look the person straight in the eye, and let them know how much it means to you.

That’s an outstanding return on an important investment.

– Vince Liuzzi, Executive Leader, Philadelphia PA