President’s Letter: The Art of Business Growth

Dear EFBC Members,

March brings with it an opportunity for introspection and reflection on our growth strategies and the health of our businesses. Recently, I had the privilege of reading an insightful article in the Harvard Business Review titled “How Fast Should Your Company Really Grow?”. It raised thought-provoking questions about the true measure of a company’s success and the implications of rapid growth on internal components such as company culture, customer relationships, innovation, and capital.

1. Right-Sizing Growth is a Vital Consideration

The article prompted me to ponder: In our pursuit of growth in revenues and profits, are we neglecting the foundational elements that truly make a company successful? Can these internal components scale effectively alongside rapid growth? As business owners and managers, it’s imperative that we consider how to “right size” growth to ensure the long-term health and sustainability of our organizations. This involves striking a delicate balance between expansion and maintaining the integrity of our company culture, talent pool, customer relationships, innovation capacity, and financial stability.

2. Crafting a Great Business Growth Strategy

What does it take to develop a great business growth strategy that aligns with the core values and capabilities of our organization? It’s about more than just chasing numbers; it’s about fostering sustainable growth that enhances the overall health and vitality of our businesses. It requires a strategic approach that takes into account market dynamics, internal resources, and long-term objectives. As we navigate the complexities of growth, let’s remember the importance of thoughtful planning, adaptability, and a commitment to excellence in all aspects of our operations.

Upcoming Events: Mark Your Calendars

• Breakfast Club: Cybersecurity – Thursday, March 21st
  Join us for a collaborative workshop on Cybersecurity best practices, presented in partnership with strategic partners PSM Partners, Wintrust Financial Corporation, and our partner Alera Group. This event will equip you with valuable insights to safeguard your business against cyber threats.
• Hybrid Roundtable: Demystifying Key Person Insurance – Wednesday, March 27th
  Facilitated by our Strategic Partner, Marcus Newman from ALERA Group, this roundtable will shed light on the importance of Key Person Insurance in business planning. Gain a deeper understanding of its significance, costs, potential challenges, and how it can protect your business from unforeseen circumstances.

Thank you for your ongoing dedication and participation in our vibrant EFBC community. Together, we will continue to thrive and evolve in pursuit of our shared goals.

Warm Regards,

Dave Horvath
EFBC President 2023-2024

The Value of Surrounding Yourself with “Like-Minded” People

At this point in your career, you’ve probably heard the advice “surround yourself with like-minded people.” Perhaps you’ve heard this wisdom from a business course or a trusted mentor, or even found it in another online blog — a simple search of the term “like-minded” on LinkedIn yields pages and pages of posts on the topic.

Like many cliches, this advice is ubiquitous for a reason: it works. Just ask co-founders and CEOs Luis van Ahn and Severin Hacker. As expats who met in Silicon Valley and were English language learners themselves, both men saw the utility in gamifying the language learning experience. This led to the creation of Duolingo, the number one worldwide language learning application, with 74.1 million active monthly users.

There’s no doubt that the shared backgrounds and mindsets of these men contributed to the success of Duolingo, and countless other CEOs have cited the teams and peers they surround themselves with as instrumental pieces in their successes. But you don’t have to go to Silicon Valley to meet the Severin Hacker to your Luis van Ahn. In fact, you can find your “like-minded people” right here at EFBC! Our forums offer unique spaces where individuals can connect with other business leaders in small settings. They also provide a space in which those leaders can delve into impactful discussions on shared challenges, find solutions, and receive support in every step of their leadership journeys. But as you network at our forums and beyond, it’s also worth keeping in mind exactly what CEOs mean when they say “like-minded.”

Because the unfortunate truth is, too many business leaders take “like-minded” to mean “people who think exactly like me.” This can, in turn, lead to CEOs hiring workforces whose backgrounds, personal identifiers, and even educational experiences all align. Not only does this actively work against the stated diversity missions that many companies have, but it can be detrimental to bottom lines. In fact, 85% of CEOs cite diverse workforces as a factor in driving both innovation and business growth.

So if we agree that “surrounding yourself with like-minded people” doesn’t mean surrounding yourself with clones who talk and think exactly like you, what does it mean? The answer is: different things to different people. But what most successful CEOs have in common is the stated mission of surrounding themselves with the people they need to succeed. And when they say “like-minded,” here are some qualifiers on which they tend to align when pressed further on the topic:

• Like-minded people don’t always agree with you, but they share your goals and values.
• They want to see you succeed. They celebrate and share your wins.
• They want to elevate themselves. They believe that rising tides float all boats.
• They are often smarter than you or have already accomplished your goals. They can serve as mentors and role models.

Another tip that many CEOs shared on this topic was another tried and true cliche: “If you can’t play tennis, watch the game.” Perhaps you can’t make your role models your peers just yet, and that’s okay. But in the world we live in, you can consume their blog posts, podcasts, books, and YouTube videos. The beauty of the modern age is that “surrounding yourself with like-minded people” doesn’t have to be a physical act. Often, their tips, tricks, and innermost thoughts are available with just a click.

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!