Monthly Archives: June 2017

The Basics Behind New Business

new business

A mouthwatering dish your grandmother made you, a leaf falling across the park, or one of the endless questions your preschooler has begun to ask you; the truth is great ideas can come from anywhere. If you have a concept you are itching to turn into a reality, there are some key components you’ll need to make it happen. At Heartland Bank, we were founded upon our commitment to small and medium sized business, and we are thrilled to help you transform your inspiration into a live entity.

To complete the process from conceptualization to implementation, there are ten key components to ensure your business has all the legal qualifications necessary. Simply follow these helpful prompts, and if there are any components you’d like further clarification on, never hesitate to reach out! Our experienced team of commercial lenders is here to answer any questions or inquiries you or your business partners may have.smallsmall

  1. Write a business plan. Your company’s business plan should detail the purpose and differentiators associated with your business. gov is an informative resource to help you determine all the required components for your proposed document.
  2. Register as an LLC or Corporation. An LLC is the most common choice for new business because the Corporation classification does mandate a $10,000,000 revenue requirement.
  3. Finance your new business. There are a variety of ways to finance your business. Whether debt or equity based, our dedicated team can help you determine which route is best suited for your business.
  4. Determine your business location.  Keeping your budget in mind, purchase or lease the space you’ll be using for your location. If you’ll be working from home be sure to take advantage of the associated tax benefits.
  5. Register for EIN and determine payroll structure. Before you hire any employees,  you’ll need to register for your Employer Identification Number for federal taxation purposes.
  6. Register your business name. You can choose to register your business as a DBA, or Doing Business As, or you can choose to register your company name and/or logo as a trademark. Both options will allow you to operate under your desired business name.
  7. Open a designated banking and credit card account. Separating your personal finances from your business is imperative in keeping accurate accounting records. Additional tools such as Quickbooks Self Employed can help you manage all aspects of your finances at home or on the go.
  8. Complete registration for state and local taxes. Business taxes are set up differently than your personal taxes. Be sure you’re accounting for all the variables before you open the doors.
  9. Receive business licenses and applicable permits. If you plan to sell alcohol or firearms, you may need federal licenses in addition to the various state requirements.

Structure and start a marketing campaign. Marketing is an ongoing effort, but to get customers in the door, they’ll need to know you’re an option. Get the word out with a strategic marketing initiative, and make a yearly plan on how to keep new clients coming in.

10 Ways to Shop Local

shop local

Supporting our community is one of the most impactful ways we can help it grow. By shopping with local vendors and utilizing area service providers you and your family can help ensure that our community prospers and grows each year. If you want to shop local, but don’t know where to start, our team at Heartland Bank has come up with some creative ideas you may not have considered yet.

  1. Get produce at your local farmers market.
  2. Purchase floral arrangements from your neighborhood florist instead of online vendors.
  3. Work with local providers for your insurance and wealth management.
  4. Venture out for the night and tour area dining and entertainment establishments.
  5. Bank with a community bank.
  6. Buy groceries from a regional company compared to the large national chains.
  7. Like your favorite area businesses on Facebook and other social media.
  8. Shop for birthdays and holidays at your community’s downtown storefront.
  9. If you have received great service or products from a local business, recommend them to a friend or relative.
  10. Stay local when planning weddings or other milestone events and avoid online alternatives.

Owning and managing a small business may be more difficult than you think. We believe that opportunity is everywhere. Whether you’d like to open a business of your own, or simply want to support the ones you enjoy, it’s great to learn what small businesses are all about. That’s why Heartland Bank is excited to share some compelling and surprising facts surrounding the small businesses in our neck of the woods.

  • A company is considered a small business if they have less than 500 employees according to the Small Business Administration.
  • 7 percent of all active companies in the United States are classified as small businesses.
  • If your favorite retailer has been in business over ten years, they have officially beat the odds. According to the Bureau of Labor, two out of three small businesses are still operating after two years in business, and only half of small businesses have survived after being open for five years.  Approximately one-third of small businesses last ten years or longer.
  • Cash flow is cited as the more common issue regarding a business’s failure. Associated tasks such as invoicing, timed billing, and record keeping are often the most commonly linked culprits.

If your business needs to gain capital for an expansion or start-up, Heartland Bank is here to help. Our experienced commercial lenders can help you determine your ideal capital amount while also setting up valuable cash flow services Send us your information or stop in today to learn more about this convenient and affordable service.

How to Save $1,000,000 for Retirement

retirement

Retirement, 401(k), stocks and bonds, the subject matter of saving for the long term isn’t often as appealing as saving for the short term. Perhaps that’s why nearly three-quarters of Americans are underestimating how much they’ll need for retirement. The United States is on the brink, if not already in, a retirement crisis. However, at Heartland Bank we believe retirement saving can still be easily accomplished, there are just a few steps to get started:

  1. The first thing you’ll need to do is determine when and how you want to retire. There are an endless variety of retirement lifestyles, each of which entail a different budget and distribution structures. Some popular options include traveling by RV, retiring in a new location, downsizing your home in the same area, pursuing a new business or passion,  and of course maintaining your current lifestyle without the need for work. By choosing your lifestyle goal we can begin to structure your savings plan around what you hope to achieve.
  2. Once you know what you want, start saving ASAP. As the old adage goes, “Slow and steady wins the race.” This phrase is the epitome of retirement. If you save less, but start earlier you will consistently save more than if you deposited higher amounts later in life. We recommend utilizing any 401(k) or retirement savings plans your employer offers. If you are self-employed or don’t have access to retirement benefits, an IRA is a great self-funded option to help you save and take advantage of valuable tax incentives.
  3. Create a goal for how much you need to save. Financial Mentor, offers great calculators to help you plan your path to retirement.  They can help you determine your strategy to become a millionaire, or show you how much you may need beyond $1,000,000. Saving more than one million could be more pertinent than you think. Today’s research indicates that millennials may need to save more than their baby boomer or gen x counterparts.
  4. Add any available surplus funds to your retirement savings. Simple adjustments like changing grocery stores, carpooling, and bringing your lunch to work can save more than you think! If you are able to find some additional ways to save, put those funds to work by contributing to your retirement accounts.
  5. Diversify your retirement savings. Instead of putting all your funds in company stock, corporate shares, or your 401(k), we suggest diversifying your savings options to ensure your risk isn’t higher than you need. Speaking with a professional adviser could help you determine what type of risk you’re comfortable with, and how you would like your contributions to grow over time.

By continuing to save each and every month you can beat the odds and have a fulfilling and successful retirement. The most important thing to do is to start. If you’d like to open a dedicated savings account, IRA, or CD, our dedicated team is here to help. Stop by or drop us a line today to get started today.

Three Things to Look for in a Starter Home

starter home

If you’re in the market for your first home, congratulations! Becoming a homeowner is an exciting step on your financial journey. At Heartland Bank, our dedicated mortgage lenders are here to help you find the best financing option for your new home. Remember to stop in and secure a pre-approval letter before you start your home search.

After speaking with a mortgage lender to help determine your family’s ideal price point, it’s time to start viewing potential homes. During this process you’re bound to find a home you’ll fall in love with, and others that may send you running for the hills. As you ride this rollercoaster of an experience, we recommend searching for the following three things in your family’s ideal new house:

  1. Good Bones. Starter homes are a great option to find a great house within an affordable budget. To ensure your investment lasts for the long-term, we recommend taking a hard look at any foundational cracks, leans, or other structural ailments. While the rest of the house could look fantastic, these three issues should be instant red flags signaling you to continue looking at other homes.
  2. Cohesive Neighborhood. The people you surround yourself with could be the individuals you see at 6:00 AM taking the trash out, or the partiers you have to ask to turn down the music at 11:00 PM. As you tour properties, don’t be afraid to chat with any potential neighbors and see if there is any information they can give on families you’ll be living alongside.
  3. Suitable Layout. While some renovations are certainly possible when purchasing a starter home, obstacles such as load-bearing walls could limit your expectations. Consider the overall layout of the home at the showing, and see if you could picture yourself the way it is. If the answer is no, then you may want to find a few backup options should the renovations not be available within your budget.

The perfect home will look different to everyone. If you’re ready to start searching for your family’s new house, our experienced mortgage lenders are here to help. We work with many successful local realtors, and we would be happy to refer you to the one that fits your needs best. Give us a call or stop by to begin the search for your home today.