Diagnose the Health of Your Small Business This Small Business Week, May 4-8
May 04 2015 - 9:00AM
Business Wire
Fifth Third Bank offers tips to perform an
annual cash flow checkup
According to the U.S. Small Business Association (SBA), more
than half of Americans either own or work for a small business.
However, if the Great Recession taught us anything, it’s that an
effective capital management program is vital to the health of
these small businesses and their employees, says Kala Gibson,
senior vice president and head of business banking at Fifth Third
Bank (NASDAQ: FITB).
“Just as you would receive an annual exam to check your physical
health, small businesses should perform a cash flow check up on a
yearly basis as well,” Gibson said.
There is no better time to consider this annual exam than
National Small Business Week, May 4-8, 2015. Issued as a
presidential proclamation every year since 1963, National Small
Business Week recognizes the critical contributions of America’s
entrepreneurs and small business owners. Nearly two out of every
three jobs created in the U.S. annually are attributed to small
businesses.
“Small businesses are the heartbeat of the American economy, but
they might not have the resources to structure an effective cash
flow program on their own,” Gibson said. “Fifth Third Bank is
supporting small businesses with tips to diagnose, develop and
execute an effective working capital management plan during Small
Business Week.”
Diagnose the Problem
When you have your annual exam, the doctor runs a series of
tests to make sure everything is functioning properly and to
determine any trouble areas. In the same way, the most effective
approach in the development of a cash flow strategy is to diagnose
where the bottlenecks or pain points exist.
For many small businesses, it may simply be a matter of
transitioning personal capital to working capital. Others may want
to evaluate the time needed to sell inventory, collect receivables
or pay its bills. Regardless of the cash flow challenge your small
business is facing, your bank or trusted financial partner can help
determine areas of inefficiency and improve your cash flow.
“Like many small business owners, all the money tied up in my
business in the first couple of years was personal capital. I knew
I needed working capital to take the next step,” said John Conlee,
president and CEO at Vertical Edge Consulting. “Working with Fifth
Third Bank, we established a line of credit that allowed me to
recoup my personal funds, while still allowing me to meet payroll
and other business expenses.”
Prescribe the Treatment
After diagnosing your illness, a doctor gives you a treatment
plan. Similarly, a bank or trusted financial partner can create a
plan of attack for your small business.
The tendency at this stage is to work quickly to repair or
eliminate the diagnosed pain points, but organizations should
consider bringing in a banking partner for an outside perspective.
Financial professionals have tremendous expertise in working
capital management and can ask probing questions that challenge the
status quo.
“I didn’t feel like I was getting the service I needed from my
previous bank, but when I switched to Fifth Third, they laid out a
plan that helped me double the size of my business,” said Dina
Kessler, chief operations officer at Kessler Creative, LLC. “That
level of personal service really made a difference in the future of
my business.”
Do What the Doctor Ordered
If you don’t follow the doctor’s orders, your next annual
physical will often reveal the same conditions. At the same time,
if you don’t execute the plan to improve your cash flow, you’ll see
the same pain points the next time you evaluate the health of your
business.
Work with your banking partner to ensure you are meeting your
cash flow goals and schedule regular checkups to evaluate your
future cash needs. Taking advantage of the tools and expertise
offered by Fifth Third Bank can make all the difference when it
comes to meeting your cash flow goals and driving success for your
small business.
“Small Business Week is a time to celebrate the companies that
are the lifeblood of our economy,” Gibson said. “Make sure your
business is healthy by scheduling your annual cash flow checkup
today.”
About Fifth Third Bank
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of March 31, 2015, the
Company had $140 billion in assets and operated 15 affiliates with
1,303 full-service Banking Centers, including 101 Bank Mart®
locations, most open seven days a week, inside select grocery
stores and 2,637 ATMs in Ohio, Kentucky, Indiana, Michigan,
Illinois, Florida, Tennessee, West Virginia, Pennsylvania,
Missouri, Georgia and North Carolina. Fifth Third operates four
main businesses: Commercial Banking, Branch Banking, Consumer
Lending, and Investment Advisors. Fifth Third also has a 22.8%
interest in Vantiv Holding, LLC. Fifth Third is among the largest
money managers in the Midwest and, as of March 31, 2015, had $308
billion in assets under care, of which it managed $27 billion for
individuals, corporations and not-for-profit organizations.
Investor information and press releases can be viewed at
www.53.com. Fifth Third’s common stock is traded on the NASDAQ®
Global Select Market under the symbol “FITB.” Fifth Third Bank was
established in 1858. Loans subject to credit review and approval.
Member FDIC, Equal Housing Lender
Fifth Third BankSean Parker, 513-534-6791
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