Inflection points in the Iowa business lifecycle

Iowa is a great place to start and grow your business — Forbes named Des Moines among the Top 10 best places for businesses and careers. There are certain moments or “inflection points” that can impact the long-term success of a company. Drawing on client insights and perspectives, we’ve identified a few moments where having tools to help manage the different stages of a growing business is key to success.

Growth

When growing your workforce, you’ll want to provide comprehensive benefits to help attract and retain the best talent. This includes traditional offerings such as retirement savings, including 401(k), and health savings accounts (HRA, HSA). 

Whether it’s equipment or additional office space, warehouses or manufacturing, a business owner must weigh the risks and benefits of purchasing vs. leasing equipment and real estate. Some factors include cash on hand, risk mitigation, strength of balance sheet and tax implications. 

Businesses can borrow based on their own financial and physical assets, which can range from accounts receivables and inventory to equipment and real estate. Asset-rich companies that have variations in cash flow but need significant capital to help them operate can access revolving lines of credit or term loans that are secured by the borrower’s assets. 

Maintenance and expansion

The pandemic showed us how volatile our systems could be. Even well-capitalized companies are vulnerable to market changes; however, companies can strengthen their working capital to mitigate risk. This includes examining how a company can lower costs, evaluate weeks of float, identify new revenue streams and automate tasks to reduce manual work. 

Digital tools can support expansion, including systems that provide real-time and other payments across geographies, streamline cross-border compliance and protect businesses from fraud and cybercriminals across global jurisdictions. Digital banking is also helping to accelerate M&A deals, reducing transaction time and costs, and delivering greater value to buyers and sellers. 

Exit

Before exiting, business owners should assess whether they have a successor with the right skills and desire to take on their role. And they should also define what they want to do upon exit, including selling the business, transferring it to a partner or family member, taking it public or liquidating. 

As more people bring new businesses to Iowa — and grow current businesses — competition will continue to increase. A calculated and comprehensive business plan is the key to success. Every moment can be an inflection point: a chance to move your business forward through effective strategy, deliberate planning and thoughtful action. 

Heidi Parkhurst is senior resident director at Merrill Lynch Wealth Management, Davenport, and president of Bank of America Iowa

Chris Lambert is senior vice president, senior relationship manager of Bank of America Iowa.