Wealth Management and Private Banking Firm Gibraltar Private Bank & Trust Shows How New Year Resolutions Can Be Implemented into Financial Business Planning

As business owners begin a new year in 2012, Gibraltar Private Bank & Trust (www.gibraltarprivate.com) recommends evaluating their financial commitments and business contracts which can be a smart way for them to save money, while protecting their hard-earned assets and ensuring security for them and their families.  Just as individuals make New Year’s resolutions that involve a review of their own lifestyle and habits, business owners too can follow this model and give themselves an easy-to-accomplish checklist of items that should be analyzed and evaluated to determine if they are still serving their intended purpose and providing the best return on investment.
 
Jay Pelham, Executive Vice President and Managing Director of Private Banking at Gibraltar Private recommends considering the following key things:

1. Reevaluate their commercial mortgage:  Many business owners obtained a commercial real estate mortgage to finance the purchase of their business location when interest rates were much higher. It may make sense to review whether it makes sense to refinance the loan at today’s lower rates. In order to get the best rate and terms, it often makes sense to determine the lender that is the best fit for your business. For example, there are some lenders that specialize in certain industries or certain property types that will provide better terms and pricing for their target market. Due to the composition of their balance sheet, some lenders may be more or less willing to lend in general. Larger banks tend to have economies of scale and can provide competitive terms when the deal “fits their box;” however, a smaller bank can sometime offer more create solutions when there is a more complicated application. Your CPA or attorney can be a good source for referrals to a lender.
2. Bundle services at their financial institution:  Just as owners do with their cable or telephone services, it makes sense to review the services business owners are receiving from their financial institutions and determine if it makes sense to put their different accounts (personal and business) under one roof.  By doing this, business owners can likely get better rates and service, while reducing fees.
3. Review their estate plan: Business owners should make time to sit and reflect on the goals and objectives of their current estate plan.  Does the plan still match up with how they want their estate to be divided?  Does the current estate plan reflect their family’s situation? Over the course of a year, or whenever the last time the estate plan was reviewed, many things may have changed within a family.  Perhaps there have been births, deaths, divorce, marriage or changes to insurance dependents.  All of these factors could impact business owners’ existing estate plans and may need to be addressed by making changes to the current plans.  Furthermore, with the current state of the economy, executives may not be as financially secure as they were previously.  It may be a good time to consider making adjustments to how their money and assets are being allocated and invested.
4. Appeal their property tax appraisal: As most real estate has lost value over the past several years, business owners may want to consider challenging the property tax appraisal on their business properties.  This can be done by a professional on a contingency basis, so ultimately business owners spend very little, while likely providing themselves the opportunity to get a break that could result in savings of hundreds or thousands of dollars.
5. Evaluate technology for the business: If owners have been considering upgrades to technology for their office or for use by employees, making those purchases before year-end can make a lot of sense.  Starting the new year with enhanced technologies can energize a business’s processes and revenue opportunities, while also increasing employee morale. 
6. Reevaluate the organizations the business is involved with: The end of the year is naturally a great time to consider the charitable and business organizations the owner has been active in. Owners should ask themselves if these organizations are still valuable to their own personal interests and business goals and if the benefits outweigh the costs. As many memberships are based on a calendar year, membership dues can often be saved if these decisions are made before year-end.  Joining new organizations can be considered as a way to build business in the coming year.

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Josh Merkin

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