United Bank & Trust Blog

I came across these 10 tips for creating a successful small business – and while I am sure there are numerous top 10 lists with the same subject matter – I thought this did a good job encompassing a lot of things that I as a lender look for when meeting with potential borrowers.

10 Tips for Creating a Successful Business

#1- Understand that you as the business owner are responsible for everything that happens in your business. You cannot delegate that responsibility.
#2- The attitude of the business owner is reflected in the employees working in the business. If you don’t like the attitude you see in your employees – look in the mirror.
#3- Personal growth and business growth are not the same but they are closely related. When you stop growing as a person you stop growing your business.
#4- Know that you don’t know everything. It is not possible. When you come to that realization, investing in trusted advisors makes so much sense and it becomes an easy decision.
#5- Life is short. Enjoy what you do and others will see that and be attracted to you. It is fun to work with and be around someone who is positive and excited about what they do. If you don’t like what you do, find something else to do.
#6- Give others credit for their contribution to your success. Everyone loves to be a part of something bigger than themselves and to be recognized for their contribution to the overall success of the organization.
#7- Know that your success is tied directly to how well you motivate, manage, inspire, sell and encourage people. Your success, especially as you grow your business comes through the performance of others.
#8- If you can’t measure it how do you know it works? Measure everything.
#9- You must understand how the business you are creating will help you create the life you want. There can be no misunderstanding. True success lies in creating a business that is consistent with and supports the life you want to create.
#10- Develop a passion for your work and have fun!

I won’t comment on every item but here are a few of my additional thoughts on some of them.

#2- When I take a tour of a business, be it a manufacturing facility or a restaurant, you can tell a lot by how the employees greet you, how they are walking, talking and interacting with each other. Do they look like they enjoy what they are doing? Do they take pride in what they are doing? How do they interact with the business owner?
#4- As soon as a business owner isn’t willing to listen (or at least consider) advice from his or her trusted advisors, I become worried about the ability of their business to survive. Whether the trusted advisor is an attorney, CPA, banker or (most importantly) an employee, a business owner must know that there is always a better way to do things, and sometimes it’s the key employee or trusted advisor who comes up with the best ideas. No matter how incremental the idea, there is always room for improvement. Feelings of contentedness and complacency oftentimes become the ‘tipping point’ leading to the failure of a small business.
#5, 7, 9- All speak about passion and attitude. People want to follow people that inspire them and want them to succeed. Whether it is a neighbor friend or an employee trying to help people be and do better goes a long way.
#6- In his book, “Good to Great” Jim Collins talks about how great leaders, “…look out the window (at others) when there is a success and in the mirror (at yourself) when there is a failure….” A leader who gives credit out to the team when there is a success is easy. But taking responsibility for the team when something goes wrong is where the rubber meets the road. Without a leader who will support a team in a failure the team will begin to self destruct, point blame, and become dysfunctional.

As an SBA lender in the banking industry, we deal with a lot of start up businesses; and being able to identify some of these characteristics in a potential borrower/business owner adds to the lending decision.

Last month we covered the U-M Cardiovascular Center, as part of our series on United’s commitment to this year’s Big House Big Heart event, please click here to read our first installment.

Let’s now focus on the U-M Program for Neurology Research & Discovery. This program is led by Dr. Eva Feldman and is made up of a team of 30 scientists who collaborate to understand and find new treatments for a wide variety of neurological diseases, including ALS, diabetic neuropathy, Alzheimer’s disease and muscular dystrophies.

As the population ages, it is currently estimated that one out of two individuals will need to see a neurologist in his/her lifetime.

Neurological diseases are one of the most common causes of patient morbidity and loss of quality of life. These life-altering conditions result from the deterioration of the nervous system. Some commonly known neurological diseases include ALS (Lou Gehrig’s Disease) and Alzheimer’s Disease. Although there are currently no cures and few treatments, recent scientific advances provide us with hope for a better understanding of these diseases and potential treatments.

ALS (Amyotrophic Lateral Sclerosis)
ALS accounts for 80 percent of motor neuron disease, and occurs in 3-5 people per 100,000. This disease of the late middle-age is progressive and results in death within five years of the first sign of symptoms. Although the causes of ALS are largely unknown, it probably arises through a combination of genetic factors and environmental stress.

Alzheimer’s Disease (AD)
AD is a neurological disorder characterized by slow and progressive impairment of cognitive function and affects up to four million Americans. This debilitating disease typically begins with symptoms include changes in language skills, decision-making ability, judgment, attention and memory loss, including signs of forgetfulness, untidiness, confusion, restlessness and lethargy, and deficiency in decision making.

These symptoms are followed by a second stage in which patients lose interest in their surroundings and are often confined to a wheelchair or a bed. The final stage includes emptiness of the mind, the loss of control of all body functions and severe brain damage leading to death.

Anyone who has had a loved one suffer from either of these diseases knows the pain and how important it is we support work that is going to find the cure.

Dr. Feldman is on the forefront of applying stem cell research to human disease; most notably she is the Principal Investigator of the first clinical trial of intraspinal transplantation of stem cells in patients with ALS. Dr. Feldman’s laboratory has begun the work of adapting this therapeutic approach for patients with Alzheimer’s disease.

And these are just a few more of the reasons why it’s important for United Bank & Trust to support Big House Big Heart and for the community to be part of making a difference!

Remember, you can help raise more money for the Big House Big Heart run. If have yet to do so, click here and become a fan of United Bank & Trust by liking us on our Facebook page. We will donate another $1 for every new fan to the Big House Big Heart event!

In a historic move late Friday night (8/5/11), Standard & Poor’s sovereign debt rating committee downgraded the United States’ credit rating one notch from AAA to AA+. While bold, this move was certainly not unexpected. Months ago, S&P fired a shot across the bow, announcing that the government’s AAA credit rating was in peril. They later stated that Congress and the Administration needed to address the growing deficit and pass a debt ceiling law that reduced the deficit by $4 trillion. Congress failed to get that done. S&P responded as they said they would and downgraded the US credit rating.

So what happens now? In reality, not much. US Treasuries are still the global safe haven when uncertainty exists in the financial markets. Both Moody’s and Fitch, the two other major credit rating services in the US, continue to rate US debt as AAA. Unfortunately, Congress still needs to address the deficit issue, most likely with a balanced approach that considers both entitlement spending cuts and revenue increases. That won’t be easy. This Congress has become the poster child for political gridlock. Fiscal policy, like any other government policy, is the result of the political process. In a divided two-party government, that typically requires compromise. But compromise does not mean “give me what I want, how I want it.” Compromise means taking the best ideas from both sides and formulating a policy to move the country forward. Let’s hope they can do that.

It’s important to keep this all in perspective. Don’t panic. We do have budget deficit and long-term debt issues that needs to be addressed. That is for sure. But we also have an economy that is sputtering along, trying to recover from a very long and deep recession. Typically, economic growth could help us address the problem. Today, it is another issue that needs help. It appears that the major factor lacking in this economic recovery is demand. The major reason there is little demand is a lack of confidence. With 2/3 of the nation’s economic growth coming from consumers, consumer confidence is very important. A well thought out and well crafted bipartisan fiscal policy could go a long way to improving that confidence.

In the meantime, let’s keep a few issues in mind:

• The S&P rating downgrade of the US credit in no way affects the country’s ability to pay its bills. Typically, a rating downgrade would increase cost of borrowing for a debtor, but initial market response actually lowered treasury interest rates.
• Moody’s and Fitch both continue to give US debt their highest AAA rating.
• Initial market response supports the US Treasury’s role as a safe haven investment.
• Warren Buffett, the world’s most successful investor, said S&P erred and the US should be rated “quadruple-A.”
• AA+ rating is still very high quality, the only higher rating is AAA.
• This could act as a wake-up call for Congress and the Obama Administration to get a comprehensive debt reduction package passed.

While the chances of another recession have increased slightly, we think that is still unlikely. US economic growth should continue in the 1 – 2% range for the next few quarters. This will be slow, uncomfortable growth, but it will be growth. And although the stock market values plummeted the first few days of August, underlying market fundamentals remain okay. Corporate profits are solid, with almost 75% of companies meeting or beating 2nd quarter estimates, and many companies are awash in cash. Valuations are below their long-term averages and interest rates should remain low for some time. That means the market should have upside potential if corporate profits continue to grow.

We will continue to monitor this dynamic situation and its affects on our investment strategy and our clients’ portfolios.

United Bank & Trust is proud to be a presenting sponsor of this year’s Big House Big Heart event to be held Sunday, October 9, 2011. This exciting race starts at the University of Michigan Stadium, with the racers’ finish line being the 50 yard line!

There are two ways for you to raise money for local non-profits:
1. Runners and their teams can raise funds for the charity of their choice.
2. Champions for Charities (the event’s organizer) donates a portion of every participant’s entry fee to three U-M departments – the U-M Cardiovascular Center, C. S. Mott Children’s Hospital and Women’s Hospital and ALS research at the U-M Program for Neurology Research & Discovery.

This month, let’s focus on the first one: The U-M Cardiovascular Center.

Did you know? Cardiovascular disease is the #1 killer of Americans today.

U. S. News and World Report ranked the U-M Hospital 14th best hospital overall in 2010 and the Cardiovascular Center 11th nationwide. How lucky are we to have such a great institution in our own backyard!

Since the early 1900’s, U-M has had faculty who have made discoveries that have influenced cardiovascular decisions worldwide which ultimately saves lives.

In fact, Ann Arbor is home to Dick Sarns, a local engineer, who worked with U-M surgeon Herbert Sloan, and developed what is today’s most noted heart lung machine, used in countless complex surgeries of the heart, vessels and brain.

U-M’s Cardiovascular Center strives to serve patients, push boundaries on research and train tomorrow’s health leaders. On an annual basis, the Cardiovascular Center:

1. Treats over 40,000 patients.
2. Performs 7,500 studies and procedures.
3. Completes 1,500 open heart and vascular operations on adults.
4. Does 600 open heart operations on children.

And these are just a few of the reasons why it’s important for United Bank & Trust to support Big House Big Heart and for the community to be part of making a difference!

Help raise more money for the Big House Big Heart run. Click here and like us on our Facebook page and we will donate another $1 per like!

We are excited to announce that United and the Washtenaw County Office of Community Development (OCD) are partnering to join the Federal Home Loan Bank of Indianapolis (FHLBI) Neighborhood Impact Program (NIP).

This program provides rehabilitation assistance to homeowners with household incomes at or below 80% of area median income. NIP will match funds from the County to increase a homeowner’s total resources to rehabilitate a home. In order for Washtenaw County to take advantage of this program they needed to have a FHLBI member sponsor the program and they asked United.

This will provide important benefits to low income homeowners in our community.

• FHLBI will provide up to $10,000/household with a 3:1 match. This will be provided by the OCD. The OCD plans to request approximately $300,000, which together with the County match; will help over 30 – 40 low income households in Washtenaw County live in safe and sanitary housing.

• OCD has administered a homeowner rehabilitation program for over 40 years. During the past two years they have responded to 29 emergencies (furnaces, leaky roofs, sewer back-ups), and completed 114 full rehabs for an average cost of $17,053. There are currently 31 people on the waiting list. The downturn in the economy has hit local homeowners hard, and the demand for Community Development funds has increased tremendously.

For more information on how to qualify or to participate in this program please contact:

Darnishous Ingram
Intake Specialist
The Office of Community Development – Washtenaw County
110 N. Fourth Ave, Suite 300
P.O. Box 8645 Ann Arbor, MI 48107
Phone: 734.622.9036
Email: ingramd@ewashtenaw.org

This program is another great example of United’s Commitment to our Communities.