HeartBeat Fall 2017 | Page 11

Another issue several of the groups addressed was the annual fly-by of financials. In other words, waiting until November and December to analyze financials can severely limit options. In addition, those that attempt to minimize their taxes through capital purchases and revenue and cost manipulation are ignoring possible unintended consequences and long term sustainability. As one lender stated, “I wish my producer customer would manage taxes instead of just minimize them.” Not surprisingly, many lenders wished their producers were better marketers. That includes knowing their cost of production, their breakeven point, and profit margin. Lenders want to see producers who can execute a marketing and risk management plan when the price target occurs. Especially in marketing, the philosophies of “we’ve always done it this way,” or “I’m going to wait until it goes higher” can get a business into a costly rut. Relating to today’s economic environment, one lender wished that every producer customer that requested refinancing also presented a written plan for corrective action. This type of approach increases accountability and can be used as a tool and discussion point as one returns the business to profitability. The institution that employees many of the lenders at the school sponsored a free educational event for area producers last year. And the number of responses was encouraging. Yet, the night of