Running a Business Articles

Build and grow your business with a strong financial foundation. Check out these articles for tips and resources.

Learn About Running A Business

Whether you’re a small local shop or an online retailer, running a business is a complex and dynamic challenge. Use these articles to broaden your understanding of the tools that are available and some proactive measures you can take to set up your business for success.

All Protecting Your Assets Managing Cash Flow Employee Benefits Preventing Fraud Scaling and Growth Loans and Credit Small Business Essentials Starting Your Business

FinCEN BOI Reporting: What’s Required & Resources The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) now requires certain newly-formed and start-up businesses to report their Beneficial Ownership Information (BOI). Here are a few helpful tips to get you started from the FinCEN BOI website. 3 min read

2024 Fraud Prevention Checklist Arm yourself with the knowledge to fight back against scammers with our 2024 fraud prevention checklist. Empowering you to be informed, cautious, and proactive in avoiding fraud. 7 min read

Southern Supreme Fruitcakes & More – Garage Startup to Global Distributer “I don’t like Fruitcake” Not a fan of fruitcake? Neither was Berta Lou Scott until she perfected her version in the 1980s. Her Southern Supreme Fruitcakes have been converting fruitcake foes to fans ever since. Visit the Southern Supreme Fruitcake Online Store A Sweet Success Story Berta Lou Scott’s fruitcake started as Christmas gifts for her friends, family, and clients in their hometown of Bear Creek, NC. Mrs. Scott’s baked goods were always sought after throughout the holidays, but her fruitcake especially garnered attention for its ability to change the minds of those who claim to not like fruitcake. As demand for her fruitcakes increased Mrs. Scott’s late husband, Hoyt Scott, took out a small business loan to increase their production capacity. The Scott family tells their First Bank story like this: “It all started around 1989 when our father/father-in-law “Hoyt Scott” wanted to take out a small business loan. At that time Mr. Jimmie Garner was who we went to see. The story that Hoyt liked to tell was, “I didn’t know who the bigger fool was: the man who wanted to borrow the money to start a Fruitcake business or the man who would loan him the money.” That is what started our relationship with First Bank.” As it turns out they weren’t fools after all. Jimmie Garner went on to become the CEO of First Bank and Hoyt Scott (along with his family) grew Southern Supreme Fruitcakes from their garage to a 40,000 square foot manufacturing, distribution and retail operation where they attract thousands of tourists each year and ship their products globally. Play Not your typical Fruitcake Two big differences set Berta Lou Scott’s fruitcake apart from the rest. Her recipe favors nuts over candied fruit, and her method of slow baking and stirring the dough as it bakes keeps the cakes from becoming dry. In fact, Southern Supreme Fruitcakes will stay fresh and moist without refrigeration for 6 months to a year. This unique baking method has posed a unique set of challenges that the Scott Family has overcome with hard work and ingenuity – something that is on display throughout their manufacturing facility. Thousands of guests tour their kitchen yearly to get a first-hand view of the one-of-a-kind operation which involves a rotating oven that allows trays of dough to move from baking to hand-stirring every 15 minutes until complete. Teams of seasonal workers begin fruitcake production in August and at the height of the Christmas ordering season, they will slowly bake and stir over 3,000 pounds of fruitcake per day. Watch this video to see their kitchen in action > 4 min read

Goombays Grille & Raw Bar Joins First Bank We’re proud to welcome Kill Devil Hills landmark restaurant Goombays Grille & Raw Bar to First Bank. Goombays has been an island hot spot since 1992 and recently changed ownership in March 2023. The vibrant chartreuse and aqua building matches the excitement that Goombays new owners, Tony Sipe and Chris Miller, have for their Kill Devil Hills, NC establishment. First Bank SBA Business Development Officer, Chase Zabriskie, was instrumental in securing the funding that Tony and Chris needed to purchase Goombays from its original owners. Commitment and diligence from everyone involved resulted in a custom SBA financing solution that fit Tony and Chris’s unique needs as first-time business owners. “Chase was so invested in our success that we started to think of him as one of our partners. Chris and I have already referred other friends to First Bank and their SBA program, and we will continue to do so. First Bank and Chase will be the first phone call we make when we are ready for our next project.” – Tony Sipe, Goombays Grille & Raw Bar Co-owner “Quite a few hurdles were jumped along the way. I became not only their trusted banker but a friend who was there to encourage them to keep trying even when it seemed like there was no longer a way forward. Using both our SBA 7a and 504 products, we were able to piece together a creative financing structure that fit the needs of both our borrowers and the sellers. We closed in March 2023 and I was right there with them at the closing table.” – Chase Zabriskie, First Bank SBA Business Development Officer The Goombays Grille & Raw Bar menu is a crowd-pleasing assortment of seafood, shareable appetizers, and menu staples like burgers, sandwiches, and salads. There’s something for everyone and all ages are welcome. Even their cocktail menu is inclusive — all Goombays bartenders are trained on how to transform their island inspired cocktails into non-alcoholic mocktails. We hope you’ll join us in welcoming Goombays to First Bank! As a result of our ability to secure their business financing, Tony and Chris chose First Bank to also be their primary banking partner. They utilize our SBA 7a and 504 products along with multiple Business Elite Accounts, and Business Credit Cards. We’re proud to offer custom financing solutions to help our neighbors pursue their goals and dreams. For anyone considering an SBA loan, get in touch with our First Bank team of SBA Experts. Navigating SBA programs can be difficult if you’re unfamiliar with the programs. Chase offers the following advice: Identify Your Goals: Take time to share as much information as possible about what goals you are looking to achieve through SBA financing. Consult With An Expert: Your First Bank SBA expert can guide you through the process and make recommendations for how best to go about structuring your financing. Start Early: Getting ahead of the game on any potential SBA hurdles is the key to keeping the process smooth and efficient. Having an early conversation and choosing the right lender can be the difference in how quickly you get to the closing table. To celebrate our First Bank partnership, the Goombays team sent us this Blueberry Mai Tai mocktail recipe. Cheers! 4 min read

Finding Success Amidst Uncertainty: Lessons from Anne Till Navigate business ownership’s unknown risks with confidence. Here are 3 pieces of advice from Anne Till, owner of Anne Till Nutrition Group, to help you thrive as an entrepreneur. 4 min read

Changes to SBA 7(a) Program for Business Acquisitions Changes to SBA Loans for Business Acquisitions Coming August 1, 2023 If your client is considering an SBA Loan to acquire or change ownership percentage of a business, they could be impacted by the recent changes announced by the Small Business Administration (SBA). A number of updates to their Standard Operating Procedures (SOP), will be made effective August 1, 2023. The following is an overview of the updates. Our Business Development Officers are well-versed in these changes and ready to discuss how they may impact your client’s SBA lending opportunities. Read more about these upcoming changes based on the type of acquisition or ownership change you would be making: Complete change of ownership Complete partner buyout Partial change of ownership or any other change in ownership SBA Loans financing a complete change of business ownership At a minimum, SBA requires an equity injection of at least 10% of the total project costs. This means that in order to qualify, you’ll need to provide 10% of all costs required to complete the change of ownership, including working capital needs regardless of the source of funds. Seller debt may not be considered part of the equity injection unless it is on full standby for the first 24 months of the SBA 7a loan or it is a debt that is on partial standby (only interest payments are being made). Partial standby debt will be considered equity if there is historical business cash flow available to make the payments and at least a quarter of the SBA-required equity injection is from a source other than the seller. If the buyer owns a business that is in the same 6 digit NAICS code, will have identical ownership and located in the same geographic area as the entity being acquired, SBA considers this to be a business expansion and SBA will not require a minimum equity injection. However, depending on the strength of the buyer, the bank may require an equity injection. SBA Loans financing a change of ownership between existing owners If the 7(a) loan will finance more than 90% of the purchase price of a partner buyout, both of the following must be met: The remaining owner(s) must certify that they have been 4 min read

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Defeat the Fraudsters: Protect Yourself Against Account Fraud Account takeover fraud is a form of identity theft where a fraudster gains access to a victim’s accounts and personal information. They can then use the information to perform a number of different fraudulent acts, including transferring funds, modifying personal information, and adding other “authorized” users. Combating this type of fraud requires understanding and action steps to make sure your business or organization is not at risk. Download our checklist to help ensure you are decreasing your risk of account fraud. Need more help with your business? Check out some of our free educational courses: Small Business Banking Services How Businesses Use Credit Opportunities for Women- and Minority-Owned Small Businesses Contact the First Bank Business Support team to learn more about what First Bank can do to keep your business protected. Suspect fraud? Give us a call immediately! 1 min read

4 Questions to Ask Yourself as a Business Owner As a business owner, there are an endless number of questions you could be asking yourself to keep your business on the right path. Here are four questions that successful business owners consider when planning for the future: Am I setting SMART business goals? How can I invest in my staff? What are the strengths, weaknesses, opportunities, and threats of my business? What does growth look like for my business? Download our printable questionnaire to help you brainstorm ideas for your business as you read this article. 1. Am I setting SMART business goals? Every entrepreneur has aspirations for their business. That’s the easy part. Achieving those goals is where it gets tricky. Have you heard of the SMART acronym? Goals that are Specific, Measurable, Achievable, Relevant, and Timely ensure that you will be more successful in accomplishing them. Think of your SMART goals as the road map to your success. Giving yourself a specific and measurable direction will help to hold yourself accountable. Outlining achievable goals that are relevant to your business will ensure you are moving your business in the right direction, and having a set timeline will encourage you to stop dragging your feet and get moving! Set your own SMART goals Here is an example to get you started: Increase our total number of Instagram followers 15% by the end of the second quarter Social media is a powerful tool for your business. A growing social media community can correlate to a growing bottom line for your business. More followers could mean more potential customers and deepening relationships with current customers. Additionally, your business gains credibility and a competitive edge against other businesses in your industry. Specific Increase how many followers you have on Instagram by 15%. Clearly define the goal and what needs to be achieved clearly and concisely. Avoid broad statements. Measurable Increase in followers from 5,000 in the first quarter to 5,750 in the second quarter. Determine how the goal will be measured so you can track the progress. Establish specific metrics, either something quantitative, a numeric value that can be assigned; or qualitative, based on its overall quality. Achievable You already have someone on staff managing your social media and keeping up 8 min read

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A Complete Guide to Business Loans Owning a business comes with tremendous opportunity, but it also takes significant amounts of discipline, time, effort, and of course, money. Whether you are running a major corporation or starting a small business from the ground up, capital is vital for your growth and success. For this reason, many organizations seek business loans to obtain the financing they need. Loans in general are very common. Most people are familiar with personal loans, such as student loans, car loans, and mortgages. Business loans are actually quite similar, but they can certainly seem overwhelming at first glance. And while they are an effective tool to kickstart your business, there’s a bit more to them than that. But not to worry, we have you covered! Before applying for a business loan, it is critical to understand what they are, the standard terms and language used in business loans, what you’ll need to apply and qualify for a business loan, and the different types of business loans and their advantages. Some of this guide may seem straightforward, but at First Bank, we take pride in keeping you informed and in‑the‑know. Additionally, business loans can be hard to get, and the requirements can be strict. But that’s exactly what we’re here for — we want to help your business grow. Follow our step‑by‑step guide to prepare your business loan application and improve your odds of being approved. What This Guide Covers: What is a business loan? What are key terms to know regarding business loans? What factors do most lenders consider for business loan approval? What documents might you need to apply for a business loan? How can you improve your odds of being approved for a business loan? How does a typical business loan process work? What are the advantages of business loans? What are the different types of business loans? What Is a Business Loan? Business loans are used to finance a variety of business operations and expenses by borrowing money from a lender under specific terms and conditions. When a company needs financing or capital, it can turn to a bank or other financial institution for a business loan. Whether you’re starting, acquiring, or expanding a business, you won’t want to drain 28 min read

Four Tips Before Starting Your Business According to research from the SBA.gov in a 2020 report of small businesses, North Carolina had a total of 934,604 small businesses. And despite everything the last year threw at us, the number of new businesses in the state continues to grow as many have been tapping into their creativity\, making the leap from side business or unemployment to self-employment. If you’re exploring the idea of starting a business, you should know that in the first two years of a business’ life, an average of 68% survive. Then after five years, 49% of those are in business, and 34% make it to that 10-year mark. The trick to being one of those survivors? Be well prepared with the right financial tools. To help, we collected the following 4 tips to help you start your business off on the right foot. Consider where you want your business to go. Before you start, think about your daily life and understand your market. Why do you want to start your own business? Do you understand your industry or your customer base? What is your daily activity like? Do you have extra income? Think about your long-term goals. What risks are you willing to take? Then, think about your business idea. Do you have a business plan? How will you purchase necessities you will need to start out? Do you have a plan for growth? Answers to these questions will be different for every potential business owner, but making a decision on these topics may lead you to tip number two. 2. Get your finances in order. Start by making a budget for your business. Things to include might be the cost of supplies, equipment, rental fees for your storefront, travel, or anything else that is a requirement for your startup. Next, consider your initial financial goals for your new business. Establishing financial goals (annual, monthly, weekly, and even daily) can keep you on track if you are planning to open or accept customers in the near future. Need help sticking to the plan? Take our financial course on creating a budget, which teaches you strategies and tips to help you stay on track. 3. Consider how you will fund your business. Once you 5 min read

How to Get the Most Out of Your Commercial Line of Credit A commercial line of credit offers flexibility and quick access to liquidity, but it can be misused, which can lead to turbulence either for your company or for your relationship with your bank. 4 min read

3 Reasons to Use a Commercial Building Loan Calculator If you’re looking to build or to purchase a commercial building, it’s a great idea to start with a commercial building loan calculator. It can give you a sense of how much to borrow for the property you’re hoping to purchase, what your loan payments might look like each month, what amortization does to your loan, and whether the provider of the commercial building loan calculator might make a good financial partner. First, let’s start with what a commercial building loan is. Much like a mortgage loan is used to purchase or refinance a home, a commercial building loan is used for an office space or piece of property that will be used or owned by a business. Commercial building loans (aka commercial mortgages) are typically funded by a bank or another type of financial institution and often require collateral. The collateral for your commercial building loan is usually the commercial property or real estate that your business wants to buy, build, or refinance. As with most type of loans, the lending partner will take into account your creditworthiness and ask for documentation of your business (e.g. tax returns, bank statements, balance sheets, etc.). See what it takes to apply for a business loan. Commercial Building Loan Calculator Benefit One: Get a Sense of Payment Amounts By using a commercial building loan calculator, you can figure out how different interest rates impact your loan. Plus, you can adjust the term of the commercial building loan to see the amount the lender expects you to pay back each month and how long it might take you to pay off your loan. The “term” of a commercial building loan is the time limit (in years) within which the loan must be repaid. Commercial building loans are offered in a variety of terms lengths. Commercial Building Loan Calculator Benefit Two: What Does It Mean to Amortize A commercial building loan calculator can also give you an idea of what different amortization does to your commercial mortgage. This is because amortization determines how much principal and interest you pay back each month on your commercial building loan. Note that if the number of years you choose to amortize is longer than the term of 4 min read

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