2024 Financial Outlook Key Takeaways

The EFBC recently held a finance seminar with the collaboration of our Strategic Partners and experts from Private Vista sharing their expert insights on the financial market landscape for 2024. This blog post will highlight the key takeaways from the seminar, providing an overview of the financial trends to expect in the coming year.

Key Takeaways:

• Job growth is expected to slow further and the unemployment rate edge higher from its current 3.7% to 4%, although it remains near an all-time low.
• The high level of government and corporate debt could potentially lead to a rise in interest rates. This situation does raise some concerns, as continued participation in these markets could lead to further increases in interest rates, due to the demand for investment capital.
• In the next 5 years, corporate entities will need to refinance over 3 trillion dollars’ worth of debt that is currently at or below a 5% interest rate. This surge in demand for refinancing could further escalate interest rates. Given these circumstances, it is unlikely that the Federal Reserve will be able to intervene effectively in the short term, i.e., the next 6 to 7 weeks. For those seeking insights into future market trends, it’s essential to pay attention to the key market indicators, such as Consumer Price Index (CPI) numbers and academic growth figures. These indicators could provide valuable clues about the Federal Reserve’s potential actions.
• Our experts predict that inflation will continue to decline toward the Fed’s target, likely settling between 2% and 2.5% by yearend.
• Fed is expected to start cutting interest rates in 2024. The majority of these adjustments are set to occur in the period from March through to June. Following this, Fed will likely hold steady through the November election, after which a final cut is likely to occur.
• Presidential Elections typically generate One thing that markets dislike: uncertainty. The year 2024 is not just an election year for the US, but for the world at large. With 40 national elections set to take place worldwide, which implies that the political landscape of nearly 40% of the world’s population and global GDP could potentially be reshaped. This is not merely a matter of national interest; the outcomes of these elections could have far-reaching implications for our economy, markets and us as consumers.
• The financial markets historically experience a rollercoaster ride during election years, with highs and lows. However, once the election results are declared, the markets typically stabilize, regardless of which party wins.
• Regardless of the election’s outcome, one certainty looms large: major changes in estate law are on the horizon. These changes, set to come into effect on January 1st, 2026, will need to be addressed by the incoming administration, be it Republican or Democratic.
• 2024 holds much more than just elections. While our focus may be primarily on the Middle East due to the current situation, it is crucial to consider the importance of trade through these seas. Any disruption in these maritime routes could lead to inflation in the US, restricting the Federal Reserve’s ability to reduce rates.
• The best time to get into the market is when you have money to invest for the long term. If you’re holding onto your cash with plans to invest in new machinery or product development, you’re in a good position. You can park your funds in a money market to earn slightly over 5%, with no risk of a downside. This strategy is especially beneficial for savers, business owners, and retirees who typically like to maintain a cash cushion.

The bottom line

During an election year, it’s common to witness a certain level of apprehension among business owners. This uncertainty often leads to a state of paralysis, where decisions are put on hold and proactive strategies are side-lined. However, it’s crucial to note that such inactivity could be detrimental to business growth. It’s essential to continue implementing innovative ideas and strategies, and to not deviate from the business models that have proven successful previously. It’s advisable to keep up with your regular business practices. Continue to model your financials, budget, and forecast as you normally would. The known is always more comfortable than the unknown. Therefore, use this as an opportunity to channel your energy positively. Keep doing what you’re good at and continue with your business as usual wish a positive mindset.

***Please note that these are only predictions and should be used as a guide rather than a definitive forecast. Always consult with a financial advisor for personalized advice.

Connect with our Strategic Partners at Private Vista

• Mary Beth McLean CFP®, MBA Partner mbmclean@myprivatevista.com
• Greg Bogdan, CFP®, Senior Advisor gbogdan@myprivatevista.com
• Nicole Romito, CFP®, CDFA Partner nromito@myprivatevista.com

President’s Letter: A Call to Action and Sneak Peek of What’s to Come

EFBC members, as we journey through February, it’s the perfect time to start activating the processes and strategies we set in motion during January’s goal-setting frenzy. Understand that setting ambitious goals is just the first step. Execution is where the magic happens. I am currently re-reading “Traction” by Gino Wickman. This insightful book provides a roadmap for turning vision into reality through a structured and disciplined approach. As we absorb the wisdom within these pages, we’re positioning ourselves to execute our vision with precision and purpose.

We are thrilled to announce that the rollout of the Hivebrite online community platform for EFBC members this spring. Our Vice President, Darrin Shillair, and the dedicated EFBC staff are working diligently to set up this app-based platform. The Platform will enhance our member experience and facilitate seamless networking, knowledge-sharing, and collaboration.

EFBC Upcoming events:

1. Thursday, February 8th (Next Week) – Our upcoming Fireside Chat is an event you won’t want to miss! We’ll be joined by guests Eric VanderPloeg, Jay Giddens, and Megan Jerabek, who will provide invaluable insights into the evolving landscape of Name, Image, and Likeness. If you’re interested in participating or know someone who might be, please reach out to EFBC staff. CLICK HERE to learn more!
2. Thursday, March 21st – Save the date! We have an exciting event lined up. Teaming up with new strategic partners PSM Partners and Wintrust Financial Corporation, along with our partner Alera Group, we will be presenting a breakfast club on Cybersecurity best practices. CLICK HERE to learn more!

Thank you for being an integral part of our dynamic EFBC family. Your participation, engagement, and contributions are what make our community exceptional.

Dave Horvath
EFBC President 2023-2024

New Year, New Business Goals: Discover EFBC Members’ 2024 Resolutions

As we bid farewell to yet another year, it’s quite natural to take a moment to reflect on the highs and lows, challenges and victories, milestones and learning curves that we navigated throughout the past 12 months. As individuals, many of us are familiar with the tradition of setting New Year’s resolutions and targets for personal growth, but in the world of business, this tradition offers more than a symbolic fresh start. The beginning of the year is an ideal time for businesses, especially smaller organizations, to revisit their game plan, examine the current scenario, and set ambitious goals for the future.

Inspired by our member’s commitment to growth, we asked few of our valued members to share their business resolutions for 2024, that we’ll share with you today, to provide you with fresh ideas and perhaps motivation for some strategic improvements in your business. So, if you’re a small business owner searching for inspiration to make your own resolutions, you have come to the right place.

1. Implement the Entrepreneurial Operating System (EOS) Meeting Pulse
   Our valued member Dave Westerman, Owner of Carbit Paint, has put a particular emphasis on strengthen the internal communication framework of his business. His resolution is to implement the EOS Meeting Pulse – a strategic 2-day off-site meeting, designed to enhance the effectiveness of team collaboration. This off-site meeting serves as a valuable opportunity for his team to reflect on the past year and learn from their experiences. One of the activities that Dave incorporates during this meeting is team-building exercises, which not only strengthens team bonds, but also enhances the synergy vital to Carbit Paint’s long-term success. Lastly, Dave’s team participate collectively in forward planning, creating comprehensive blueprints with a particular focus on for the upcoming quarter, forthcoming year and the next three years. This is where the integration of new year business resolutions comes into place; setting achievable goals and establishing fresh strategies to accomplish the company’s objectives. “These 2 days are often my favorite 2-days of the year, as it allows us to come up for air, and work “on the business” VS “in the business”” – says Dave.
2. Use the EOS/Vision Traction Organizer
   EFBC’s another dedicated member, Sean Hoffman, Owner of Nuance Solution, is also anchoring his New Year’s resolutions on the EOS, but his focus is the Vision Traction Organizer (VTO). The VTO is an integral part of the EOS that helps to simplify complex strategies and break them down into manageable segments, ensuring that all team members are on the same page with the business’s vision, focus, goals, and strategies. Nuance Solution’s Senior Leadership team has worked over the last 90 days to craft their Vision Traction Organizer – a blueprint for Nuance’s long-term and short-term successes. This comprehensive blueprint includes both their Vision (Core Values, 10-year Target, Marketing Strategy, 3-years Snapshot) and Traction (Annual Plan & Quarterly Plan with Key Objectives and Goals). The intent is to facilitate gradual deployment of this new strategy, rolling out to their entire team over the following 6 months. “Nuance has already seen great benefits from making this commitment and we look forward to becoming a better organization!” – says Sean.
3. Develop New Key Roles Within the Organization
   Ryan Seitz, another valued member and Operations Manager of Kolbi Pipe Marker Co., is taking a different approach to reinforce the efficiency and performance of his business. Ryan understands that as his company grows, so does the complexity of tasks and projects. And as a small business owner, you cannot oversee everything. To address this, one of his New Year’s resolution involves developing new key roles within his organization that align with the company’s growth and diversification strategies. This strategy involves identifying gaps in the current structure, then designating new roles to close these gaps and increase productivity and efficiency.
4. Strengthen Onboarding and Training
   In tandem with creating new roles, Ryan is resolved to strengthen his company’s onboarding and training processes. He recognizes that a comprehensive, well-structured onboarding and training program is crucial for equipping new hires with the tools and knowledge they need to succeed. Better training leads to improved performance and increases employee satisfaction, as employees feel more competent and confident in their roles. Continuous training sessions should also be a priority to keep employees updated with current industry trends and practices. Keep the methods diverse – workshops, e-learning modules, or even mentorship programs – to cater to different learning styles.
5. Boost Employee Satisfaction
   Ryan isn’t stopping there. One of his New Year’s resolutions involves boosting employee satisfaction. He understands that the level of employee satisfaction and engagement directly impacts business success. Happy employees equate to a productive and innovative workforce. Boosting employee satisfaction doesn’t only involve financial rewards but also includes recognizing their efforts, providing opportunities for growth, creating a pleasant workplace, and striking a work-life balance.
6. Tightening up Inventory
   Rounding out Ryan’s New Year’s resolutions is his plan to tighten up the inventory. Staying in control of inventory is essential for small businesses to avoid losses and unnecessary expenses, manage cash flow, and ensure that customer demands are met without delays. To this end, Ryan aims to invest in an inventory management system to automate tracking and reduce human errors. This is a powerful strategy for reducing unnecessary costs and boosting the company’s overall profitability in 2024.

In conclusion, resolutions allow small business owners to redefine their goals, refocus their energies and strive for continuous growth and development. Remember, the key to maintaining your New Year’s resolutions lies in setting realistic, achievable goals, and maintaining a steadfast commitment to achieve them. Stay dedicated, and 2024 will likely be a promising and prosperous year for your small business.

7 Sales Methodologies and How to Use Them for Your Small Business

In our ongoing efforts to empower small business owners and entrepreneurs with effective sales strategies, we’ve conducted in-depth research to present to you 7 effective sales methodologies that have the potential not only to foster growth in your business but also possess the sustainability to ensure its prosperity for many more years to come. As you explore these methodologies, you’ll gain insight into their unique properties, as well as the best scenarios for their application. The question that arises now is which of these techniques ideally aligns with your sales team to maximize their potential? Read further to delve into our findings to understand the dynamics of 7 sales methodologies and explore how they can be leveraged for your business’s benefit.

1. The SPIN Method

What is it?
SPIN stands for the four types of strategic questions salespeople can ask their customers: Situation, Problem, Implication, and Need-payoff. This sales technique relies on sellers raising pointed questions early in the deal. Situation questions gather information on a prospective client’s current situation. Problem questions help illustrate different needs that a product or service can solve. Implication questions show a client why their problems need solving, and need-payoff questions lead that customer to their own conclusion: that a certain product or service is the answer.

When is it effective?
The SPIN approach can be effective if your product or service is a clear solution to common difficulties that customers are experiencing, especially when those customers may not have previously identified those difficulties.

2. The MEDDIC Sales Program

What is it?
The MEDDIC Sales Program focuses on the idea that finding the right prospects will lead to a higher closing rate. The acronym MEDDDIC stands for the criteria that make a prospect highly qualified. They are Metrics, Economic buyer, Decision criteria, Decision process, Identify pain, and Champion. In this program, a seller uses those criteria to identify who within an organization to approach about a sale.

When is it effective?
This approach tends to be most effective if your sales team is working in B2B environments where they need to be highly knowledgeable of who will help them drive sales.

3. The Challenger Sale

What is it?
As the name suggests, challenger sellers challenge the status quo by opening prospects’ eyes to possible solutions to a problem that may exist outside of the norm. Rather than offer a solution to a known problem, a challenger seller may alert a prospect to a problem they didn’t even know they had.

When is it effective?
If your product or service is “cutting edge” or has unique selling features, the Challenger Sales Approach may be one that your team wants to consider.

4. Solution Selling

What is it?
Like the SPIN method, Solution Selling is an inquiry-based sales approach. However, it is much more in-depth. Rather than ask guided questions to lead prospects toward a pre-determined solution, this approach seeks to understand the specific problems affecting a client. It then offers a customized solution that solves the client’s problem.

When is it effective?
Because it requires customized solutions, this sales approach is only effective when those customizations are available. It also requires a high level of responsiveness from clients, so is better done in cases where that responsiveness can be ensured.

5. The Sandler Selling System

What is it?
This method emphasizes salespeople acting as consultants to their clients. It requires relationship building and the establishment of mutual trust between sellers and clients.

When is it effective?
Because it requires that building of trust, this method can be time consuming. Therefore, it tends to be most effective if your a company is selling a large-scale product or a product with a high markup percentage.

6. SNAP Selling

What is it?
Yet another acronym-based approach, SNAP stands for 1. keep it Simple 2. be iNvaluable 3. Always align and 4. raise Priorities. This pared-down sales approach requires sellers to communicate a product’s value simply and in a way that shows prospects that a certain product or service will help them achieve their objectives.

When is it effective?
SNAP selling is most effective when your clients are busy and your sales team needs to communicate and close quickly and efficiently.

7. Gap Selling Methodology

What is it?
Like SPIN, Solution Selling, and SNAP selling, the Gap Selling Methodology is a problem-and-solution based sales approach. However, gap selling is unique in its focus on identifying a prospect’s current state and desired future state. Only after identifying those states does a seller using this method present their product or service as the solution to help prospective client bridge that gap.

When is it effective?
Like Solution Selling and The Sandler System, this method requires a good deal of back-and-forth between seller and prospect. Therefore, it is most effective when both your sellers and prospects have time and space to engage in the dialogues necessary to make it work.

Whichever sales approach (or approaches) you choose, having a common language with which to discuss sales will unify your selling team and provide actionable steps to help them become better sellers. And that’s just good business, not matter who you are.

Bidding Farewell to 2023 with EFBC President

Happy New Year! As we bid farewell to 2023 and step into the possibilities of 2024, it’s a time of fresh beginnings, renewed ambition, and the excitement of setting new goals.

Personally, this is my favorite time of the year, as it allows us to reflect on our achievements, dream big, and set our compass for the journey ahead. Set SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals that will guide you throughout the year.

My favorite December read was “How To Know A Person: The art of seeing others deeply and being deeply seen” by David Brooks. It dives into the essential skill of truly understanding others and fostering meaningful connections, at home, at work, and throughout our lives.

Here’s what’s on the horizon for our EFBC community as we dive headfirst into January & February 2024.

• Flex Forum – January 17th, 2024
• Financial Wrap-Up Seminar Hosted by Private Vista – January 24th, 2024
• Fireside Chat – February 8th, 2024: “NIL Name, Image, Likeness” a topic with profound implications for business and sporting industries. The event will feature EFBC Strategic Partner Eric VanderPloeg from Burke Law and special guests Jahvae “Jay” Giddens from Purdue University and Megan Jerabek from von Briesen

Remember, your journey towards your goals doesn’t have to be a solitary one. EFBC is your community, a network of support, and a source of inspiration.

Wishing you a prosperous and goal-driven January!

Dave Horvath
EFBC President 2023-2024

Happy Holidays from EFBC!

As the year draws to a close and the holiday season approaches, our EFBC team along with our Board of Directors are filled with immense gratitude towards our valued community. We have created a short video filled with holiday greetings to express our appreciation exclusively to you.

May the holiday spirit embrace you and your loved ones, and may it fill your hearts with joy, love, and aspirations for a promising new year. From all of us at EFBC, we wish you and your family a safe, happy, and joyful holiday season!

EFBC NEWS: Congratulating Cha Mi on her Promotion!

This month we are excited to announce that intern, Cha Mi Fung, has been promoted to Marketing Coordinator! We are excited to keep her on with us and looking forward to what she has in store for EFBC!

Please tell us about you experience as an EFBC Intern and prior experience prior to your time with us!

Reflecting on my journey, I have had the privilege of gaining invaluable knowledge & skills and working in a dynamic and collaborative work environment through my time as an intern at EFBC. Working closely with a teeny tiny but the BEST team, I had the opportunity to learn and grow, acquiring hands-on experience not only in marketing, but in event planning as well. Prior to joining EFBC, I had the opportunity to undergo management training in the hospitality industry at Hilton Chicago.

How did you hear about EFBC originally?

Well, let me take you back to my days as a graduate student at DePaul University. During that time, I was on the lookout for internships that could provide valuable real-world experience in the marketing field. My search led me to a job posting site affiliated with the university, where I stumbled upon EFBC and it caught my attention and curiosity!

What are you most excited about in regards to working for EFBC in a full time capacity as opposed to an intern?

As I step into this new role, I am most excited about the chance to be more involved in decision-making process and contribute fresh ideas to ensure our marketing efforts align with the organization’s goals and objectives. On top of that, now as a I hold a full-time position, I can fully immerse myself in the EFBC’s culture and build stronger relationships with my team as well as EFBC community. I look forward to taking on new challenges and contributing to the growth and success of our marketing and programming efforts!

In your spare time, what do you like to do for fun?

I absolutely love exploring new coffee shops and restaurants here in Chicago. Being a total foodie at heart, this has become a weekly tradition for me! If you have any hidden gem recommendations or favorite spots, I would love for you to share them with me! Beside indulging in delicious food, I’m also taking jiu jitsu classes and recently started attending salsa dancing classes!

What is your go-to karaoke song?

I have 3 staple karaoke songs!

1. Imagine Dragons – “Demons”
2. Adele – “Someone Like you” I gotta admit that I can’t hit those high notes though
3. Black Eyed Peas – “I gotta feeling”

CLICK HERE to read Cha Mi’s full biography.

How to Delegate Like the Boss You Are

Delegating, the art of transferring responsibilities from one person to another. Not only does learning to delegate free up time in your schedule to focus on higher level tasks, it also helps you grow a team of empowered and self-sufficient employees for your business. In fact, according to a Gallup study, CEOs adept in delegation generate 33% higher revenue.

But just because delegating is an important management skill, doesn’t mean it’s an easy one. A study from the late London Business School professor John Hunt tells us that only about 30% of managers think they can delegate effectively. So if delegation doesn’t come naturally to you, you’re not alone, and we at EFBC are here to help with five steps you can take to learn to delegate and lead like the boss you are:

1. Identify What to Delegate
   Not everything can be delegated but identifying what can be is half the battle. Start by making a list of all your responsibilities. Then, decide which tasks absolutely need to be done by you. Usually, these will be the tasks that are both important and urgent. If something is neither of those things, it can be delegated. If it is urgent but not important, it can probably also be delegated. The grey area comes when a task is important, but not urgent. For these tasks, ask yourself probing questions about why or why not you might want to delegate them. Will delegating a certain task free you up, as a manager, to help move the business forward? Or will it help one of your employees grow further towards a goal or future position? If the answer to either of those questions is “yes,” the task should be delegated.
2. Know Your Team
   Each of your employees comes with a set of strengths and goals. The best managers know what those are and take them into account when delegating, whether to grow that employee or put them in a position at which they will excel. And taking time to learn employee strengths has proven payoffs. The Gallup Organization’s “State of the American Workplace” study found teams that focus on strengths have 12.5% greater productivity than those who don’t. So if you get to know your team and put your aces in your places, half of the delegation battle will already be won.
3. Define Success
   When delegating tasks and responsibilities, it is important to make sure your employees know how to handle their new roles successfully. Think of what success looks like when you complete a task and make sure your delegatee has the required information to achieve that same success. They should have a good idea of what a “job well done” looks like, as well as the metrics you will use to evaluate them and how everything ties into the overall mission and values of your company.
4. Establish a Failure -> Feedback Loop
   Even if you do a great job defining success, your employees still may fail in their new roles, and that’s okay. Offer constructive criticism and check in to make sure your employees implement your feedback in subsequent tasks. To ensure that you are delegating effectively, also provide employees opportunities to give YOU feedback. One company that does this in an innovative way is the MITRE Corporation, where Senior Principal Systems Engineer Dan Ward has implemented a “failure ritual” that involves eating cake while reflecting on past failures and learning from mistakes. According to Ward, “being honest about failure and having something sweet…helps reduce the pain and shame of the experience.” Think about what a failure ritual might look like for your company. Maybe it doesn’t involve cake, but perhaps there’s something you can do to ensure that your employees can be forthright about their failures and ameliorate them for the next time.
5. Give Authority and Recognition
   This is where you need to fight the urge to micromanage. Once a task is assigned, it is beneficial to give a delegatee authority to make decisions within the scope of their new responsibilities. Establish a communication channel in which questions can be asked of course, but if your employee feels like you’re looking over their shoulder at every turn, they won’t be able to have those moments of failure that lead to growth. Not to mention the fact that you won’t have achieved the point of delegation in the first place: getting a task off your plate. And when someone does a good job, give them credit! This can be something simple, like a shout out in a meeting, or you can follow in the footsteps of over 80% of Fortune 500 companies and implement a formal employee recognition system like Bonusly, Bucketlist, or Motivosity.

Delegating isn’t easy, but following our five tips will help you to cultivate a dynamic and motivated team that contributes to the success of your organization. And the more you practice delegating, the more effective you will become in your role as a manager.