Northern California (1069)

Thursday, 01 August 2013 16:00

Networking like a pro

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Networking is a critical best practice for business owners regardless of their company’s size. When you are just starting out, the effort you put in to making and nurturing contacts can directly impact your revenue and the future success of your business.

Smart Business spoke to Elisabeth Fraser Au-Yeung, vice president of marketing at Sensiba San Filippo LLP, about tips and tools that can help you become a polished and eloquent networking expert.

How can business owners prepare for a networking event?

Savvy networkers always have a plan in place before attending an event. A plan may include evaluating the event — is the event of high value to attend? What are your goals for attending? Will your target audience be in attendance?

Try to obtain a list of attendees and any sponsor firms prior to the event. Use the list to build a prioritized list of ‘target’ attendees you want to meet and speak with. You can take it one step further and create goals for each person you want to meet, as well as speaking points that you have thought out and practiced for when you meet that person. You can even search online for photos of the individuals you want to meet so you can more easily find and recognize them.

In addition, you need to have a few tools including business cards, a practiced and polished elevator pitch, and even marketing collateral that you can hand out. Have a pen so you can make notes on the back of the business cards you receive. Note any significant details that the person you met shared so when you follow up, you can mention this and make it a more impactful and personalized connection.

When you arrive, how do you start a conversation?

It can be more comfortable to arrive to an event early, as the room will be less crowded. Do not wait for someone to approach you. Be the master of your own destiny. Approach a person or a group and ask if you can join them. When you meet someone, make eye contact, have a firm handshake and smile. By doing so, you will look and feel more confident.

As you are speaking with people, listen to what they have to say and be cautious about interrupting. When it is your turn to speak, ask open-ended questions about the people with whom you’re speaking, such as what brought them to attend the event? What makes them passionate about their business or industry? What are they doing for the summer? People enjoy discussing the things they are passionate about, including their business and personal interests.

How should business owners ‘pitch’ themselves and their business?

When asked about your business, have a brief and easily understandable description of what you do. Be sure to incorporate into your description the ‘so what’ factor — what it is that makes you or your company different and why the person you are speaking with should be interested in hearing more about your business.

What are the most important tips for success in networking?

Networking is all about relationship building — having rapport and building chemistry over a period of time with people you meet. A relationship will not be built at just one event. It is something that needs to be nurtured.

Remember to ask everyone you meet for a business card. After the event, send an email and a LinkedIn invite to connect with them within 48 hours. Reference something you discussed by checking your notes on the backs of the business cards so your contacts have a recollection of your conversation. Make yourself ‘valuable’ by offering to send a white paper or thought-leadership piece. Follow up with your contacts every 30 days to keep in touch, and even offer to meet for coffee or lunch to further strengthen your relationship.

Elisabeth Fraser Au-Yeung is a vice president of marketing at Sensiba San Filippo LLP. Reach her at (925) 271-8700 or eauyeung@ssfllp.com.

For more market insights, visit Sensiba San Filippo's blog.

Insights Accounting is brought to you by Sensiba San Filippo LLP

For the first time in modern U.S. history, companies are employing four generations of workers. Four generations in the workplace can mean more opportunity for success or more problems, depending on how an organization deals with the generational differences.

“We’ve never had four generations working side-by-side, a 20-year-old working with colleagues that may be 50 years older. In order to work together, you have to honor those differences, and you can’t expect everyone to act and think like you do,” says Terri Walker, principal human capital consultant at TriNet, Inc.

Smart Business spoke with Walker about the ways various generations view their jobs and how to manage employees to create a happier, more productive workplace.

What challenges come with having four generations of workers?

An older, more experienced worker (born before 1946) or baby boomer (1946-1964) may have different values than someone coming to the workplace for the first time. Those employees likely expect a level of respect that a Generation X (1965-1977) or Generation Y/millennial (1978 and later) employee wouldn’t automatically give just based on age. The younger workers value the knowledge and achievements you bring to the workplace more than just the fact you’ve been there a long time.

Additionally, there are differences in how generations communicate. Frequently, Gen X/Gen Y workers prefer instant messaging (IM) or email, whereas other workers might value meeting face-to-face and going to a person’s desk to have a conversation. Older workers may feel it’s rude to IM or send a text when you’re in the same building, while the younger worker thinks you’re bothering them by taking time to walk to their desk.

No one way is right or wrong; they’re just different. When you understand and respect these differences, you’ll have a more productive workplace. You don’t have to agree with each other’s values, but you have to respect them.

What are the risks of managing everyone the same?

You’re going to have employees who are not satisfied with their work environment because policies are too loose or too stringent. Employees generally know and understand work duties, but management style is what drives them toward other opportunities. High turnover brings costs in recruiting, management time and loss of productivity. The last thing you want is churn because of the work environment.

It’s up to management to bring everyone together, to find what motivates employees and tailor rewards that keep employment interesting for all. Someone who’s been with the company for years may be waiting for that gold Rolex watch at retirement, while a younger employee wants an immediate — though smaller — reward for a job well done, maybe a Starbucks gift card.

Most of us grew up with the golden rule that you treat others the way you want to be treated. However, a new rule has come into play, the ‘titanium rule’ — treat others the way they want to be treated. That involves understanding what motivates them and treating them accordingly.

How can a company bring people together?

First, look at and understand your employee base. What are the different generations? Does one generation dominate your workforce or management team? How well do they work together? What methods does your organization use to communicate? How is technology being utilized? How are managers communicating with employees? Also, look at turnover to see if there are peaks in a particular department, which could indicate a problem with communication or work style.

Once you’ve conducted an analysis, work with executive management to find the gaps where you could be doing better. Make sure managers, supervisors and all employees feel they are valued. This approach creates a robust, productive workplace where everyone is engaged and respected, which brings real benefits in dollars and cents.

Ensure that your leaders have the knowledge and skills to communicate and work effectively with all employees. It takes flexibility and open-mindedness, a willingness to look at different ways of doing things. Successful organizations and managers incorporate these elements into their structure and practice them daily.

Terri Walker, SPHR, is a principal and human capital consultant at TriNet, Inc. Reach her at (510) 352-5000 or terri.walker@trinet.com.

See how companies grow their business and engage their employees, or follow TriNet, Inc. on Twitter.

Insights Human Resources Outsourcing is brought to you by TriNet, Inc.

 

Thursday, 15 August 2013 07:28

Make it count

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A few years ago, one of my friends embarked on what he deemed an ambitious, yet simple plan: Write a New York Times Best Seller.

“Ed” had reason to be optimistic: His first two books had sold well and he had successfully leveraged them to launch a burgeoning consulting practice. Ed also had a nationally known book publisher to handle distribution for this book, and he had developed a comprehensive marketing and promotions plan for the launch.

Ed felt all the pieces were in place and was sure he would succeed. His goals were two-fold: break out from the pack and grow his business, and hit the New York Times Best Seller’s list. While his head told him the first goal was more realistic, his heart was set on the second — publicly claiming it was his only true benchmark of success.

Needless to say, Ed’s book didn’t make the list. Few books do. That doesn’t mean Ed’s book was a failure. Quite the contrary, it was a huge success.

As a result of Ed’s book, he landed numerous speaking engagements with organizations and companies around the world. He began to command four- and five-figure speaking fees from those engagements, and his book was purchased and distributed to every attendee.

Further, Ed’s speaking engagements lead to dozens of private companies hiring him to provide one- and two-day seminars, where he taught executive teams how to implement the ideas he espoused in the book. Ed was also presented with numerous business opportunities for new and existing clients to tackle initiatives beyond the book’s subject matter that he had not previously considered but were related to his expertise.

Finally, Ed did sell thousands upon thousands of copies of his book in bookstores nationwide and online through booksellers like Amazon.com and BarnesAndNoble.com. His book was in the hands of the right people — and lots of them — and he had established a national profile.

Viewed through this lens, there is little doubt that Ed’s book was wildly successful — even if it wasn’t a New York Times Best Seller and even if it didn’t stack up to his primary benchmark.

This is the reality of book publishing. Each month, I speak with dozens of entrepreneurs and CEOs about their nascent book ideas and the possibility of having Smart Business Books handle development and publication of their stories and manuscripts. I begin every conversation the exact same way: “If your goal is to have a New York Times Best Seller, we’re not the right option for you.”

That’s because you should write books for the right reasons. If your only goal is getting on a best-seller’s list, then your ambitions are off the mark. Writing and publishing a book is not like a professional sports team’s season — there isn’t one winner who takes the championship and a bunch of losers who fall short. Publishing a book is not an all-or-nothing proposition.

This isn’t to say you shouldn’t aim high with your goals, and having your book become a best-seller is certainly one way to measure success. Setting reasonable expectations, however, is essential.

So why write a book?

One of the most important questions you should be able to answer when thinking about writing a book is, “Who is going to read it and why?”

As Ed’s story demonstrates, a book is a very useful business development tool. It is an immediate conversation starter, an excellent credibility builder and one heck of a leave-behind. If you’re engaged in marketing, why not capture your expertise through a book?

Another reason is to celebrate a milestone or establish a legacy piece. It could be for a 50th or 100th anniversary, or to recognize the history of an organization upon the founder’s retirement or death.

And, if you are interested in helping others succeed, a book is a great way to share your expertise or what makes you and your organization special. For example, if you’ve built an amazing corporate culture where productivity blossoms and innovation flourishes, the “how” and “why” are good subjects for a book. And if you’ve been involved with several mergers and acquisitions, consider sharing what worked and what didn’t, and the lessons learned along the way.

Whatever your story, the key is having a reason to share it with others. The bottom line: It’s your story. Make it count.

Small Business Administration (SBA) loans are particularly popular in challenging economic times, when traditional lenders are less willing to provide funding. Program changes, including increasing the maximum loan size from $2 million to $5 million, are attracting more businesses. In the fiscal year ending Sept. 30, 2012, the SBA approved 39,442 loans for a total of $15.25 billion, and in the first nine months of fiscal year 2013 the SBA has approved 39,063 loans for $16.25 billion.

“In down times, the SBA programs become more important and fill a vital need for small businesses,” says Raymond Monahan, senior vice president and group manager of SBA Lending at Bridge Bank.

Smart Business spoke with Monahan about the types of SBA loans that are available and recent changes to the program.

What types of SBA loans are available?

The 7(a) is most commonly used; 75 percent of the loan is guaranteed by the government and money can be used for working capital, inventory, equipment, debt repayment (in certain instances) or real estate.

The 504 loan program is less well known. It’s more structured and is generally for real estate acquisitions. A borrower typically provides 10 percent down; a real estate mortgage pays 50 percent of the project cost; and the SBA guarantees a debenture for the remaining 40 percent through a Certified Development Company (CDC).

What are the benefits to SBA loans versus traditional loans?

The most obvious advantage is that there is a guarantee backing the loan. It’s also easier to qualify. Some businesses that are new, don’t have a certain profit level or don’t have the necessary down payment for traditional financing can get an SBA loan. Generally, you may need only a 10 percent down payment, whereas a bank will want 25 to 30 percent down if you’re buying real estate.

Another nice aspect is a longer amortization period. Most commercial real estate loans have a 25-year amortization period, but a 10-year maturity rate. That means you need to refinance at some point. With an SBA program, the loan is fully amortized over 25 years and you never have to worry about refinancing. Non-real estate loans can be financed for up to 10 years.  
Although SBA loans aren’t subsidized by the government, the guarantee may be able to get you a better rate.

Are there disadvantages as well?

With 7(a) loans, there is a prepayment penalty in the first three years if the maturity is more than 15 years. Because 504 loans are financed through bond sales, they have longer prepayment penalties on those.

The SBA also may require additional collateral. You might put 10 percent down, but the SBA could want a house or other collateral to further secure the credit.
Finally, there also are fees. The 7(a) program has a guarantee fee of 1.7 to 2.8 percent of the total loan amount — the percentage goes up as the loan size grows. With a 504 loan, there’s a fee of about 3 percent of the CDC portion — the 40 percent financed through the SBA plus any fees charged by the first mortgage lender.

What recent changes have been made?

In addition to increasing the maximum loan amount from $2 million to $5 million, the definition of a small business has expanded. Instead of having different standards based on industry, the new alternate threshold is that the net worth of a company cannot exceed $15 million and profits over the last two years cannot exceed an average of $5 million. They have also loosened restrictions on line of credit programs.

There are two further changes being considered — simplifying the affiliation rules and eliminating personal liquidity tests.

The SBA has many cumbersome rules about what constitutes affiliate companies, and they’re attempting to simplify that so you have to own a majority of the business in order for it to be considered an affiliate. Someone might own 40 percent of a business with an SBA loan and not be able to qualify to get a loan for another business.
As for liquidity, the SBA has rules that you can’t have more than a certain amount of liquidity to be eligible for a loan. They’re looking to get rid of that test and just focus on whether it is a small business.

The changes are about helping more businesses that might need financing, which is the goal of the SBA.

Raymond Monahan is a senior vice president, group manager SBA Lending, at Bridge Bank. Reach him at (408) 556-8384 or raymond.monahan@bridgebank.com.

Follow Bridge Bank on Twitter.

Insights Banking & Finance is brought to you by Bridge Bank

California Proposition 65 — the Safe Drinking Water and Toxic Enforcement Act of 1986 — has spawned a cottage industry that profits from putting businesses on notice that they have products containing chemicals on the list of potentially hazardous substances.

But the mere presence of a chemical in a product doesn’t mean that there has been a violation, and there are steps you can take to protect your business when you receive a notice, says Thomas H. Clarke Jr., partner at Ropers Majeski Kohn & Bentley PC.

“Everyone seems to lose sight of what Prop 65 is about because the plaintiffs want you to see a list of chemicals in your product and think you’re a bad person. But the law is not about the chemical being present, it’s about exposure,” Clarke says.

No exposure above a specified level, no violation.

Smart Business spoke with Clarke about what you should know about Prop 65.

What is the main flaw with Prop 65?

The burden is placed on the defense. A plaintiff only needs to show that the chemical is present and there’s a reasonable exposure pathway. Then the burden shifts; the defendant must prove the exposure is below the warning threshold. If plaintiffs were required to prove exposure, all of the games go away because frequently the only exposure scenarios they present have nothing to do with product usage.

For example, a client was selling a keepsake binder and one of the plaintiff’s scenarios involved the binder being on the floor, and a baby crawling over and licking it. The regulations state that an exposure is determined by normal use by an average consumer. The thesis that babies licking binders happens frequently is ludicrous.

Plaintiffs exaggerate so that you are intimidated and will not contest the case. They want a settlement that pays them substantial sums. To justify their fees, they will impose some reformulation standard, but quite often there’s no evidence the reformulation has any beneficial affect on exposures.

Why do businesses agree to settlements rather than go to trial?

Plaintiffs know what it costs to defend these lawsuits and are clever about making a settlement offer. If it’s going to cost $150,000 to defend, they’ll seek $80,000 to $90,000.

Upon receipt of a 60-day notice that a lawsuit will be filed, be proactive — model the use of the product. Such evidence is not cheap. In the case of the binder, about $8,000 was spent to prove the exposure was under the threshold. Such evidence changes the dynamics of the case.

How should a business react when it receives a warning letter?

When a business receives a 60-day warning letter, it should take immediate steps to assess the product. Probably 90 percent of these notices are tossed. No one worries about them; it’s only when a lawsuit is filed that they realize they have a potential problem.

After assessing whether there is an exposure, you know if the case is defensible. If it is, that’s the posture to take. If not, then you need to settle, and one of the things you’ll need to do is change the composition of the product. If you assess early, then this process is in your control, not the plaintiffs.

What is being done to solve the ‘greenmail’ problem?

Assembly Bill 227 addresses the kind of shakedown lawsuits that get a lot of publicity. Plaintiffs review public records for violations, like allowing smoking near an ATM machine. Then they fire off letters stating the business is in violation of Prop 65, and demand money.

AB 227 covers those activities that are frequently exploited. If it passes, someone receiving one of these shakedown notices can cure the problem immediately because usually the only requirement is a warning sign. There is a small penalty provision, but most of the money goes to the state.

However, if you really want to eliminate abuse, demand that the law be amended to put the burden of proof on the plaintiff. There’s nothing wrong with warning people, but to associate the presence of a listed chemical in a product with an actual threat of real harm lacks merit.

Thomas H. Clarke Jr. is a partner at Ropers Majeski Kohn & Bentley PC. Reach him at (415) 543-4800 or tclarke@rmkb.com. Learn more about Clarke.

Insights Legal Affairs is brought to you by Ropers Majeski Kohn & Bentley PC

Estate planning is more than just having documents. It needs to be tied to long-term intent and aligned with your goals. What works for one person may not work well for the next, and what worked 10 years ago may not work now.

Geoffrey M. Zimmerman, CFP® practitioner, senior client advisor at Mosaic Financial Partners Inc., says many treat their estate plan like a transaction, even though the moving parts may have changed.

“They may have a document that is doing things to them and to their beneficiaries, and not really working well for them,” he says. “That’s why it’s important to review the plan periodically. It might take a visit to your attorney and the cost of several hours of time to update it. But in terms of relieving the headache on a surviving spouse or beneficiaries, those can be dollars well spent.”

Smart Business spoke with Zimmerman about why your estate plan should be continually adjusted.

What recent changes make updating your estate plan important?

Although the estate tax exemption did not reset as many feared, there are new items to consider. Undistributed income from an irrevocable trust can reach the top federal income tax bracket of 39.6 percent plus the Medicare tax of 3.8 percent after only $11,950. Those trusts can also see capital gains rates increase from 15 to 20 percent. This might impact a surviving spouse with capital gains assets in a credit shelter trust (also called a bypass trust) and assets in a marital trust.

How could outdated plans create problems?

In 1996, a couple with a $3 million estate would typically use a bypass trust to allow both spouses to use their respective $600,000 exemption to non-spouse beneficiaries, effectively allowing $1.2 million to pass to heirs free of estate tax. The remaining $1.8 million — plus any additional growth — was taxed at the death of the surviving spouse at rates up to 55 percent. A common planning strategy at the death of the first spouse was to put growth assets into the trust, as there would be no estate taxes on those assets. Heirs would still pay capital gains taxes, but capital gains taxes were (and still are) lower than estate taxes.

Today, the estate tax exemption has increased to $5.25 million per person. In our example above, the surviving spouse’s estate of $2.4 million worth of property could more than double before reaching $5.25 million and triggering any estate taxes.

Also, with the new laws, there is a now a new feature called ‘portability,’ which allows the surviving spouse to use the deceased spouse’s unused exemption amount. So in theory, a surviving spouse could pass up to $10.5 million worth of assets to heirs free of estate tax without using a bypass trust.

Older trusts that call for the creation and funding of a bypass trust may incur other unintended consequences. For example, formulas that call for funding the bypass trust to the maximum amount available without triggering an estate tax could leave the surviving spouse at a disadvantage with little or no assets in the survivors trust. Subtrusts that contain highly restrictive conditions for distributions to the survivor can create further complications. Finally, estates that contain large amounts of illiquid  assets that would need to be split between multiple trusts may also be problematic.  Periodic reviews, including a flowchart to understand what assets are going where, may be particularly helpful.

Also, as mentioned earlier, undistributed income in the bypass trust can hit top tax rates at very low levels of income, whereas the surviving spouse may not reach top tax brackets until he or she reaches $400,000 in taxable income.

Does this mean subtrusts are no longer useful?

They are still useful in cases where control over the disposition of assets is important, such as preventing a surviving spouse from disinheriting children from a previous marriage. You must balance the need for control against the surviving spouse’s needs, and your goals for your non-spouse beneficiaries. The surviving spouse and beneficiaries may have different interests — income versus growth. Proper planning, which includes a good understanding of goals and motivations, can help improve the odds of a successful outcome.

Geoffrey M. Zimmerman, CFP® practitioner, senior client advisor, at Mosaic Financial Partners Inc. Reach him at (415) 788-1952 or Geoff@MosaicFP.com.

Zimmerman, CFP® practitioner and senior client advisor for Mosaic Financial Partners Inc. serves affluent individuals and families. A complimentary consultation is available upon request.

Insights Wealth Management & Finance is brought to you by Mosaic Financial Partners Inc.

 

Sunday, 30 June 2013 20:27

How to manage excess liquidity

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A company’s liquidity and cash needs are like a river. The short-term immediate needs flow pretty fast as cash moves in and out of the business. But the further you go down in the water — down to cash that’s only needed for a rainy day — the slower it moves. In fact, it can be too idle.

“Often, there is this big pool of excess cash for the off chance they need liquidity,” says John Whiting, CFP, principal at Moss Adams Wealth Advisors. “But what they give up in that scenario, by keeping that money highly liquid, is less yield and return on those dollars. It can grow to be a fairly significant amount of money that potentially, year-after-year, is pooling up in unproductive ways.”

Smart Business spoke with Whiting about maximizing your business’s treasury management to make assets as productive as possible.

Why is treasury management critical?

Treasury management is the strategic management of a company’s working capital and excess liquidity. By maximizing this, given the specific business needs, the company is more competitive with better earning potential through properly deployed assets.

Today, businesses have accumulated a lot of cash and may not deploy those assets with the economic uncertainty. Even in this low-yield environment, companies that have built cash over the past three to five years could be getting an extra 20 to 30 basis points. And by deploying excess liquidity, you not only can get an extra return, but also, with low interest rates, can use working capital lines to address unexpected needs.

Why do treasury functions not get the same scrutiny as inventory control, capital budgeting and accounts receivable?

It can be an afterthought, as it may initially start so small it doesn’t feel like it warrants a lot of attention. Typically, a controller or CFO is charged with making sure the liquid assets are positioned, but there isn’t anything defining the objective.

What’s a better approach?

You need to be disciplined, looking out over the horizon and anticipating company cash needs to a better extent.

The business should have a written investment policy statement that defines expectations and is used to segment liquid assets into different buckets based on the time horizon for the business’s needs. The statement also would say exactly what investments are appropriate for each bucket, including the necessary credit quality.

Further, the investment policy statement should help set up controls to monitor risk.

How should the guidelines for how funds are invested be structured?

Start with assessing the risk and the needs of the company. Then, look at the next business cycle or more to see possible cash flow needs. You can time assets to ensure the liquidity is there when you need it.

Let’s say, a business is sitting on $10 million in liquid assets and is anticipating either an acquisition or significant capital improvements that might take $3 million or $4 million of that in 18 months or two years. Understanding that allows you to position the assets by buying municipal bonds or high-quality corporate fixed income that would mature three months before the assets might be needed. Now, you’re getting the best and highest yield possible, given that expected need.

What’s important to know about monitoring these treasury functions?

It’s important to understand the real return on investments by having a reporting mechanism, which then determines your success. For example, many CFOs or controllers use multiple financial institutions in order to mitigate risk. However, they need to aggregate all of the information to really assess and score the overall management process.

The cost of management is not terribly opaque, even with the effort to create more transparency. With fixed income, you need an understanding of who is negotiating on your behalf and how are they going about procuring that fixed income for you.

Half the battle is asking the questions and getting straight answers. An outside adviser is often the best management choice, but be sure to have an open discussion about the fee structure and associated costs. In fact, it can be a line item on your investment report because understanding the real cost of managing assets is key.

John Whiting, CFP® is a principal at Moss Adams Wealth Advisors. Reach him at (707) 535-4167 or john.whiting@mossadams.com.

Insights Accounting & Consulting is brought to you by Moss Adams LLP.

As summer begins, more of us will be taking some well-deserved vacation time, but business doesn’t grind to a halt just because you happen to be away from the office. That means more entrepreneurs and business executives will be relying on online and mobile banking tools to stay in touch with their business finances.

Given the need to access financial information in real time, what does the future hold for online and mobile banking? More importantly, how can these resources help business executives make better decisions for meeting their strategic goals — now and in the future?

Smart Business spoke with Susan Brown, senior vice president and Marketing Group manager at California Bank & Trust, about how online and mobile banking tools are helping executives not only access account information, but also provide sophisticated technologies for meeting complex business and treasury management needs.

Why has mobile banking become so important to business customers?

In today’s fast-paced business environment, you can’t afford to be out of touch with your finances. It’s become more essential than ever for entrepreneurs and their teams to have 24/7 access to a variety of business metrics, such as account balances, payables, receivables, cash on hand and more.

In the past, traditional online banking tools accessible via desktop PCs and laptops met these needs, but smartphones and tablets are now becoming preferred devices for accessing information. A recent report predicted that by 2014 smartphone shipments are likely to top 1 billion units, and that by next year sales of tablet devices will exceed sales of traditional laptops.

Data like this makes it clear that mobile devices are going to be key tools for business leaders to get more done in less time.

Has mobile overtaken online banking?

Mobile banking is not different from online banking — you’re just using a different device and tools to access information remotely. The more people rely on tablets and smartphones, the more mobile apps will grow in popularity. The most likely scenario for the near future is that most business users will adopt a hybrid approach, using traditional online banking tools in the office and mobile apps on the road.

Why is online banking expanding from transaction-oriented to customer-centric?

The best financial institutions are customer-centric. These banks focus squarely on strong relationships between their clients and business bankers. Clearly, customer-centric institutions want online and mobile banking resources and technologies to reflect and mirror those values.

Transactions are important, so of course online and mobile services need to support high-transaction volumes. However, the real value is banking experts helping clients make the best use of sophisticated tools to meet complex needs, such as cash management and fraud prevention. This is why a customer-centric approach will continue to be a focus.

Will the popularity of online and mobile banking impact the future of bank branches?

When online banking first emerged, many in the industry thought it might mark the end of branch banking. However, face-to-face contact is still important, especially in a business-banking context. Many transactions, such as those involving deposits and cash withdrawals, require a network of branches. There will be a gradual decrease in the number of branches, but branch banking isn’t going away anytime soon.

What online or mobile options are available?

Most people know they can pay bills online, check the status of payments and review balances, but there are other online tools that offer more sophisticated capabilities. For example, businesses can use advanced treasury and cash management solutions customized to meet highly specific needs.

What new capabilities under development could be used in the future?

Institutions are investing in user friendly and interactive websites, as well as introducing new apps that allow clients to service their banking needs from tools like mobile devices and iPads. As the capabilities of these devices grow and devices are introduced, banks will develop new, interactive ways to support their clients’ growing needs that complement the traditional avenues.

Susan Brown is senior vice president and Marketing Group manager at California Bank & Trust.

Mobile: To learn more about California Bank & Trust’s business mobile banking app, now optimized for iPads, visit www.calbanktrust.com.

Insights Banking & Finance is brought to you by California Bank & Trust

Sunday, 30 June 2013 20:00

Honoring the best of the best

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NCA Ernst & Young Entrepreneur of the Year 2013

Since 1986, Ernst & Young has celebrated the entrepreneurial spirit of men and women who have followed and achieved their dreams, changing the lives of countless others by building their businesses and giving back to their communities.

Their passion, vision and persistence stand as a testament to their dedication. It was 27 years ago that Ernst & Young founded the Entrepreneur Of The Year program to recognize these dynamic leaders and to build an influential community of innovative entrepreneurs.

We have gathered here and in 25 other cities in the U.S. to welcome the men and women who are regional finalists into our community and to toast their vision. Their energy and self-confidence have turned their dreams into reality. We applaud them all for taking the road less traveled to launch new companies, open new markets and fuel job growth.

So let’s lift our glasses to celebrate their passion, innovation and unwavering commitment to win in the marketplace.

Ernie Cortes, program director, Ernst & Young Northern California

Here are the Northern California Ernst & Young Entrepreneur of the Year award recipients and finalists:

 

Advertising Technology

Award recipient – Tod Sacerdoti, founder and CEO, BrightRoll

Finalist – Aaron Bell, founder and CEO, AdRoll

Finalist – Bill Demas, president and CEO, Turn Inc.

 

Financial Services

Award recipient – Renaud Laplanche, founder and CEO, Lending Club

Finalist – Harpal Sandhu, president, founder and CEO, Integral Development Corp.

Finalist – Hayes Barnard, founder and CEO, Paramount Equity Mortgage

 

Life Sciences

Award recipient – Mark Fischer-Colbrie, president and CEO and Rich Ellson, Co-founder and CTO, Labcyte, Inc.

Finalist – Maky Zanganeh, D.D.S., COO, Pharmacyclics, Inc.

Finalist – Jeffrey Dunn, president and CEO, SI-BONE, Inc.

 

Platform Technology

Award recipient – Gurbaksh Chahal, founder and CEO, RadiumOne

Finalist – Chris Friedland, president and founder, Build.com

Finalist – Fabio Rosati, president and CEO, Elance

 

Retail and Consumer Products

Award recipient – Neil Grimmer, co-founder and CEO, Plum Organics

Finalist – Eric Ryan and Adam Lowry, co-founders, Method Products, Inc.

Finalist – Katie Rodan, M.D. and Kathy Fields, M.D., co-founders, Rodan + Fields Dermatologists

 

Services

Award recipient – Lyndon Rive, co-founder and CEO, SolarCity

Finalist – Mike Sechrist, CEO, and Elena Whorton, president, ProTransport-1

Finalist – Burton Goldfield, president and CEO, TriNet

 

Software

Award recipient – Aneel Bhusri, co-founder, co-CEO and chairman, and David Duffield, co-founder, co-CEO and chief customer advocate, Workday, Inc.

Finalist – Lewis Cirne, founder and CEO, New Relic

Finalist – Erik Swan, co-founder and CTO, Splunk

 

Technology Infrastructure

Award recipient – Ashar Aziz, founder, FireEye, Inc.

Finalist – Steve Smith, president and CEO, Equinix

Finalist – Robert Pera, founder, Chairman and CEO, Ubiquiti Networks

NCA Ernst & Young Entrepreneur of the Year

Software

Award recipient

 

Aneel Bhusri

Chairman, co-founder and co-CEO

Workday, Inc.

 

David Duffield

Co-founder, co-CEO and chief customer advocate

Workday, Inc.

 

Upon graduating from Stanford University business school in 1993, Aneel Bhusri wanted to work for a tech company, and chose PeopleSoft largely because of founder David Duffield. They went out for beers, and Bhusri was impressed that a CEO would take a newbie out to get to know him. He started in an entry-level position but quickly took over products, and ended up being the No. 2 person at PeopleSoft in 1999.

PeopleSoft grew to be the world’s second-largest enterprise resource planning application software company before being acquired in 2005.

So, in 2005, the two co-founded a new company, Workday, Inc., which produces human resources software, heavily relying on cloud technology

Bhusri considers 2013 to be a key transitional year for Workday. The company historically developed and sold its HR products in the U.S., but in the next 18 months is entering the European market, and offering financial solution products to its customers.

The two founders hope Workday emerges as the dominant player in the enterprise IT space in the next five years.

Workday operates according to its core values: employees, customer service, integrity, innovation, fun and profitability. These values drive the company’s business behavior, define what’s important to them and inspire the company’s culture.

Bhusri believes that you can work hard to build a strong company while still having a lot of fun. When Workday hits its targets, employees are given a week off, as well as a stipend, and it’s not unusual to see employees’ dogs curled up next to their owners in the office.

Duffield, focusing on the customers, has been key in the high satisfaction level.

Consistent with their personal philanthropic activities, Bhusri and Duffield established the Workday Foundation in 2012 with a 500,000-share donation. The company also offers its employees various ways to give back to the community.

How to reach: Workday, Inc., www.workday.com