Danny Pohnl of Security Financial Bank

The start of the new year is the perfect time to turn your entrepreneurial dreams into reality. Whether you’re launching a startup or expanding an existing business, securing the right funding is the critical first step. Luckily, Security Financial Bank (SFB) is ready to assist.

SFB put its roots down in northwestern Wisconsin in order to serve the area’s businesses, farmers, and community members. Now 90 years later, SFB continues to serve as a locally-owned community bank, specializing in small business solutions.

“That’s why I work at SFB,” said Danny Pohnl, SFB vice president and commercial relationship manager. “It always comes down to the people. We are working with local people who want to start businesses in the communities we serve. I think that’s the same reason people choose to bank with SFB. We live and work here too, and we will advocate for your business and for you.”

Small business owners are no strangers to hard work, but no one is an expert on everything. Before considering what kind of loan or additional financial support you need, get your financial house in order.

“I think that is the most important first step,” Danny said. By ensuring your personal finances are in order– making timely loan payments, preparing personal documents like taxes, and squirreling away cash for a down payment or a few months of operating capital – you can create a smoother process toward funding your business.

“The next step is developing a business plan. You should identify your target market; identify who your customer will be, how you will reach that customer, how you’re going to grow; how you will fund that growth; and include what your two-year and five-year goals look like,” Danny said. “That could include steps like hiring team members, purchasing equipment and inventory, or perfecting your economies of scale. Maybe your plan includes expansion or even the acquisition of a building or facility.”

“Step three is putting together your projections. Banks typically want to see month-to-month projections for the first couple of years of your business,” he explained. “Not only will that help your banker understand your cash flow cycle and how you will fund your operation, but it is also an extremely enlightening exercise that will be a key to your success. It’s good practice to be able to project growth in your revenue and your balance sheet, and specifically, how you will manage that growth. What will you do with that profit, and where will it go? Will you invest it in retention or hiring of employees? Will you use it to purchase equipment? Cash is the lifeblood for any business so understanding your cash flow is essential.”

Your business plan should go hand-in-hand with your projections. The key is research, ensuring an informed plan and logical projections. Often it is helpful to experiment with numerous scenarios, starting with extremely conservative projections, then what is most likely to occur, and onto what is the ideal outcome if everything you envision comes together. During that process, you will want to build an advisory team, likely including an accountant, an attorney, an insurance expert, and a banker.

Specializing in small business loans, SFB offers a wide variety of financing opportunities: lines of credit for working capital, equipment loans, commercial/investment real estate loans, Small Business Administration (SBA) loans, and more. Of course, each business is unique, and creating custom financial packages is what SFB does best.

“Our expertise is in small business loans. I’ve worked with sole proprietorships to businesses with 400+ employees – of course, we tailor loan and financial packages to those different needs. There is no “one-size fits all” in small businesses,” Danny said.

While your banker won’t be offering legal advice, they will certainly be a resource to point you in the right direction. For Danny, that also ties back to working with locals. He graduated from UW-Eau Claire with a degree in accounting and finance in 2011 before launching into his banking career in Minneapolis. After meeting his wife there, they knew they wanted to start their family in a smaller community. They chose Eau Claire.

“We love it here. The sense of community and local collectiveness here is different,” Danny said. “It makes for a great place to live and raise a family.”

For locals dreaming of entrepreneurial endeavors, there is at least one locally-owned bank in your corner: Security Financial Bank. Learn more about SFB by visiting sfbank.com.

Security Financial Bank

Bankers Who Believe in You • Call the Eau Claire office at (715) 833-7685 • sfbank.com • Member FDIC

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