3

YOU BRINGTHE MOXIE.WE’LL BRING THE LOAN.

Lisa ForrestSBA Lending VP 425-999-2042lisa.forrest@unionbank.com

©2013 Union Bank, N.A. All rights reserved.

Not a commitment to lend. Financing subject to credit and collateral approval by Union Bank and the Small Business Administration. Other restrictions apply. Terms and conditions subject to change. Financing is available to businesses and collateral located in CA, OR, or WA.

If you’re ready to acquire a company, we’re ready to help. Union Bank® has a team of merger and acquisition specialists standing by to guide you carefully through the process. We’re also one of Washington’s top lenders of Small Business Administration–backed financing for business buyouts. Whether you’re buying your first company or acquiring another to grow your business, it’s only right that you should get the chance to succeed on a larger scale.

7

NEXT ORDER OFBUSINESS:OWN THEBUILDING.

If you’ve ever thought of owning your building, now is an ideal time to take the next step. Financing rates are at historically low levels. If you already own your building and are paying more than 5.00% on an existing commercial mortgage, it’s definitely time to refinance. Either way, Union Bank® lets you lock in your interest rate for 90 days, and provides up to a 20-year term and a 25-year amortization period to help lower your monthly payments. Union Bank provides conventional real estate financing, and we are a Preferred Lender with the Small Business Administration for 504 and 7(a) loan programs. For nearly 150 years, we’ve been helping clients make more of their businesses. The way we see it, it’s just the right thing to do.

©2013 Union Bank, N.A. All rights reserved.

Lisa ForrestSBA Lending VP 425-999-2042lisa.forrest@unionbank.com

Not a commitment to lend. Financing subject to credit and collateral approval by Union Bank. Small Business Administration fi nancing is subject to credit and collateral approval by the Small Business Administration. A due diligence fee may be required upon approval. Other fees and restrictions may apply. Terms and conditions subject to change. Financing available for businesses and collateral located in CA, OR, or WA.

3

Lisa Forrest, VP 425-999-2042

Leslie Somes, VP 425-359-8741

Amannda Schneider Franchisee, Five Guys, Western Washington

BURGERS,FRIES, WITHA SIDE OF FINANCING.

Preparation and speed are important in all aspects of food service, even banking. When Amannda Schneider asked Union Bank® to help her purchase a Five Guys Burgers and Fries® franchise territory, we were prepared. Our expertise financing small businesses helped her through the SBA loan process quickly. As Amannda says, “Banks sometimes move at the speed of slow. That was not the case here. Union Bank moves at the speed of business.” Shortly after closing, we helped Amannda identify and acquire another franchise territory. Even though this required a second loan, we closed the transaction three weeks early. If you’re trying to grow a business, quick decision making and e� icient loan processing are important considerations. In today’s environment, a bank that moves at the speed of business is doing right. To learn how Union Bank can help grow your business by providing acquisition financing or other types of business capital, call one of our bankers listed below.

Not a commitment to lend. Financing subject to credit and collateral approval by Union Bank. Small Business Administration financing is subject to credit and collateral approval by the Small Business Administration. A due diligence fee may be required upon approval. Other fees and restrictions may apply. Terms and conditions subject to change. Financing available for businesses and collateral located in CA, OR, or WA. Bank reputation survey conducted by American Banker and Reputation Institute, published July 2013. ©2013 Union Bank, N.A. All rights reserved. Member FDIC. Visit us at unionbank.com.

5

WE’RE BANKERSAND NAVIGATORS.

It’s always good to have guidance in the world of finance. And the world of marine electrical and electronics. Navigating the commercial loan process can be as complex as reading an electrical wiring diagram. So when John Jackson challenged Union Bank® to provide business acquisition financing, a substantial operating line of credit, and treasury services, we got to work learning each other’s business. As John says, “I wrote a plan, going into minute detail about the business, including in-depth financial statements. And Union Bank explained banking to me in a language I understood.” In the end, John became the owner of Harris Electric. And we became his bank. At Union Bank, helping companies navigate today’s economic environment is more than just good business, it’s doing right. To learn how Union Bank can help grow your business by providing acquisition financing or other types of business capital, call one of our bankers listed below.

John JacksonPresident & CEOHarris Electric

Lisa Forrest, VP 425-999-2042

Michael Hsia206-854-7855

Not a commitment to lend. Financing subject to credit and collateral approval by Union Bank. Small Business Administration financing is subject to credit and collateral approval by the Small Business Administration. A due diligence fee may be required upon approval. Other fees and restrictions may apply. Terms and conditions subject to change. Financing available for businesses and collateral located in CA, OR, or WA. Bank reputation survey conducted by American Banker and Reputation Institute, published July 2013. ©2013 Union Bank, N.A. All rights reserved. Member FDIC. Visit us at unionbank.com.

2

Building business relationships that last decades requires a strong commitment. When Sal Cisneros became president and CEO of the Channel Islands YMCA, he sought out a responsive financial partner that would tailor its services to meet their needs. As Sal explains, “I needed a partner who understood who we are, with a commitment to being involved in the community. Union Bank stepped up.” When Sal was faced with renewing the lease on his administrative o� ice or transferring that payment to a commercial mortgage, we presented him with a customized commercial mortgage structure, allowing the YMCA to make better use of their financial resources and deliver more to the communities they serve. At Union Bank,® helping you make better long-term financial decisions isn’t just good business, it’s doing right. To help position your business for the future, contact Brian Schwabecher at 805-564-6459.

unionbank.com/testimonials

Not a commitment to lend. Financing subject to credit and collateral approval by Union Bank. Small Business Administration financing is subject to credit and collateral approval by the Small Business Administration. A due diligence fee may be required upon approval. Other fees and restrictions may apply. Terms and conditions subject to change. Financing available for businesses and collateral located in CA, OR, or WA. Bank reputation survey conducted by American Banker and Reputation Institute, published July 2013. ©2013 Union Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. Visit us at unionbank.com.

Sal CisnerosPresident & CEOChannel Islands YMCA

COMMUNITYLENDER.COMMUNITY SUPPORTER.

3

Not a commitment to lend. Financing subject to credit and collateral approval by Union Bank. Small Business Administration financing is subject to credit and collateral approval by the Small Business Administration. A due diligence fee may be required upon approval. Other fees and restrictions may apply. Terms and conditions subject to change. Financing available for businesses and collateral located in CA, OR, or WA. Bank reputation survey conducted by American Banker and Reputation Institute, published July 2013. ©2013 Union Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. Visit us at unionbank.com.

Rejuvenating an economy requires community partners to work together. Shortly after Santa Barbara City College hired Lori Gaskin as president, we got in touch to welcome her to our community. As Lori says, “Union Bank believes in the essence of higher education being the fuel that rejuvenates the economy—and the belief that a cohesive and bonded community creates socioeconomic mobility.” We couldn’t agree more. Lori learned quickly that Santa Barbara is a community that thrives on relationships. Being a community partner is more than just good business, it’s doing right. To learn how Union Bank® can help your company become an engine for growth, contact Brian Schwabecher at 805.564.6459.

unionbank.com/testimonials

HIGHEREDUCATION FUELS THE ECONOMY.CAPITAL IGNITES IT.

Lori Gaskin, PresidentSanta Barbara City College FPO

Welcome to business banking that works for you

©2016 MUFG Union Bank, N.A. All rights reserved. Member FDIC. Union Bank is a registered trademark and brand name of MUFG Union Bank, N.A. unionbank.com 8912565-CA (01/16)

Welcome to Union Bank

Accessing your account(s)Your new account information

For over 150 years, we’ve helped small businesses succeed— and we appreciate the opportunity to do the same for yours. After all, we live and work here just like you. And when small businesses like yours grow and expand, our community is a healthier and more vibrant place.

Thank you for opening your new Union Bank® business account(s). Here are your account details:

Account Type _____________________________________________________________________________________________

Account Type _____________________________________________________________________________________________

Account Type _____________________________________________________________________________________________

Union Bank Address ______________________________________________________________________________________

City __________________________________________________________________ State _______ Zip ____________________

It’s easy to bank any way you choose. Get started with Online, Mobile, or Telephone Banking by following these steps.

Online Banking for Small Business2

To enroll online, go to unionbank.com/smallbusiness and choose Enroll in Online Banking from the Access Your Account section.

To expedite your enrollment, please be ready to:

• Answer personal validation questions to confirm that you are the business owner or contracting officer.

• Set up an online profile by creating a user ID and password; providing your contact information, city of birth, and mother’s maiden name; and selecting security questions.

• Read and accept the terms and conditions, and then click Submit.

Once you’ve completed the enrollment process, you can log in instantly and see your account balances, transaction details, check images, and online statements.

Questions? Call an online banking specialist at 800-238-4486.

Administration Console

To add other users to your online service, go to Online Banking for Small Business and select the Admin link. Within the Administration Console, you can:

• Add new users easily.• Define users’ roles and manage which accounts they can view.• Access the Administration Console User Guide for more details

and explanations.

Online Bill Pay

After you log in to Online Banking, go to the Bill Pay tab and choose the Add Payee link.

Make payments to a business, person, or Union Bank loan or line of credit in just three quick steps:

• Enter payee details on the Add Payee page.• Enter payment details on the Make Payments page.• Review payment and submit.

Account Alerts

To set up Account Alerts,3 log in to Online Banking and choose Alerts from the top navigation bar, then:

• Select Alerts.• Set delivery options.• Confirm your selections.

Mobile Banking

Set up Mobile Banking4 in three simple steps:

• Set up Online Banking.• Download our free Mobile Banking app for iPhone,® iPad,®

Android,™ or Blackberry.®• Log in with your Online Banking user ID and password.

Questions? Call an online banking specialist at 800-238-4486.

Telephone Banking

You can easily access your Union Bank accounts by phone to transfer funds, verify balances, order checks, and more. To get started:

• Call 800-238-4486 (option 1).• Enter the last eight digits of your debit/ATM card or your

account number listed above.• Enter your four-digit debit/ATM card PIN or four-digit

Telephone Banking PIN.

Union Bank ABA routing number: 122000496

Checks, deposit slips, and endorsement stamps:

¨ Your temporary checks are enclosed.

¨ Supplies ordered from Deluxe® Business Checks should arrive in approximately _____ days.

To order business checks, go to unionbank.com/businesschecks or call Deluxe at 888-239-0558.

Overdraft protection:

¨ Deposit overdraft protection has been set up. To apply for a Business Cash Reserve line,1 please contact your banker or call 866-825-6267.

Debit card / ATM card:

You’ll receive your permanent card in approximately _____ days.

Switching to Union BankNow that you’ve opened your new business account(s), use the guidelines below to make sure all services linked to your former bank account(s) are canceled or transferred to Union Bank.

Electronic debits and credits (Automated Clearing House [ACH]). Contact your vendors, suppliers, and other entities that electronically charge or credit your account(s) and direct them to use your new Union Bank account(s) listed on the inside front cover.

Online Banking for Small Business. Please refer to the instructions on the previous page.

Merchant Services deposits. Ask us for a quote on transferring your Merchant Services to Union Bank. Among other benefits, you’ll get next-day funds availability with deposits made to your Union Bank account(s).

Helping you minimize risk and maximize safetyUse these guidelines to develop a fraud-prevention program, which can help protect your business no matter what its size.

Be sure to consult with your accountant to create internal controls that meet the unique requirements of your business. And if you suspect possible fraud, notify Union Bank immediately. Our All About Business Accounts & Services Disclosure and Agreement details some of your obligations relating to the security of your bank accounts.

Monitor, verify, and reconcile account activity

• Review account transaction activity regularly via Online Banking. Consider establishing Account Alerts to notify you of unusual activity in your account(s).

• Enhance the security of bank statements by viewing them online rather than receiving paper copies via mail.

Work with your banker to increase protection

To help maintain strong safeguards, be sure to:

• Contact Union Bank if you receive any suspicious calls asking to verify checks not issued by your company.

• Notify us if any law enforcement agency contacts you regarding fraudulent check activity.

• Reduce the number of paper checks you write by setting up electronic payment services, including wire transfers, ACH, direct deposit payroll, and tax payments.

• Ask us if you have questions regarding our security procedures for electronic banking services.

Keep financial documents secure

Use these tips to help reduce risk and limit access to crucial financial documents, such as checks and financial documents.

• Use online statements. Union Bank will store check and deposit images securely for up to seven years.

• Purchase a fireproof safe to store physical documents.• Limit your check order supply to six months.• Review check orders immediately after you

receive them to verify account information, including consecutive check numbers. Report any missing checks to us immediately in case you need to place a stop payment order.

• Make sure sensitive documents are protected from unauthorized employees and others who may have access to your building, such as maintenance staff.

• Store your working supply of blank checks in a secure location and your reserve supply in a separate secure location. Audit the reserve checks periodically to ensure that none are missing, especially those in the middle of a stack.

Payroll solutions. We offer two solutions that can help reduce costs, eliminate paperwork, and save time, so you can focus on running your business. For more information, go to unionbank. com/ payroll. Or contact your current payroll provider to begin processing payroll out of your new Union Bank account(s).

Other banking services. Review your past statements for any other services tied to your former business account(s), such as wires, tax payments, and cash-handling products. We can create customized solutions that meet your specific objectives; just ask us for a quote on any of our cash management services.

Closing your old account(s). Once you’re sure all outstanding checks and electronic debits have cleared your former account(s) and all services above have been transferred to Union Bank, you can close your business bank account(s) at your former bank.

5

Establish guidelines for signatures, account access, and transfers

To help prevent fraud, implement these policies for financial transaction authorization:

• Periodically review bank signature cards, funds transfer agreements, and access codes to confirm authorized users and signatures.

• Notify Union Bank immediately whenever there are changes to account ownership, new signers, or additional employees or vendors you would like to provide with account access.

• Periodically review Online Banking or information reporting systems to confirm the level of account access your employee(s), bookkeeper, or accountant should have.

Add protection to basic office functions

Use these tips as part of your security policy and review it periodically to help you and your employees avoid unintentionally exposing your businesses to risk.

• Don’t include bank account numbers or identify authorized signers in correspondence or email, even to the bank itself.

• Never use email to request assistance with account maintenance or financial transactions, as we can’t act on such requests.

• Don’t act on any request received via email outside secure messaging, which Union Bank offers through the Online Business Center and Online Banking for Small Business.

Everyone in your business who works with money should be subject to a basic level of scrutiny. We suggest:

• Verifying references and the last place of employment of all applicants.

• Being alert to major changes in employees’ spending patterns or financial circumstances.

• When an employee is terminated or leaves, immediately discontinuing that person’s access to all bank accounts, the company network, and any other sensitive internal or external applications.

For more account information, and for terms and conditions governing our deposit accounts, see our All About Business Accounts & Services Disclosure and Agreement and applicable Business Deposit Fee Schedule. Terms and conditions subject to change. For more information, visit your local branch or unionbank.com.

1 Subject to credit approval. Certain fees and other terms and conditions apply and are subject to change. See our Business Cash Reserve Account Disclosure and Agreement for details.

2 Online Banking and Online Banking for Small Business are free for personal and small business customers. Other fees, such as overdraft fees, will still apply. 3 Alerts received on your mobile access device may incur charges from your mobile service provider. Alerts are available only for accounts that are included in the Online Banking for Small Business service and do not substitute for account statements or other notices from us. Refer to our Online Banking for Small Business Agreement for additional details.

4 Mobile Banking is offered as a free service to Union Bank Online Banking for Small Business users. You may incur charges assessed by your service provider. Message and data rates may apply.

WE’RE ALWAYS HERE TO HELP

• Contact your banker• Stop by your banking office• Call 888-818-6060• Visit unionbank.com/smallbusiness

Union Bank client Louis Talamantes, owner of Buddy’s All Stars.

IN THIS ISSUE

SBA Loan Powers Electric Company’s Growth

Speed and Preparation Help Popular Franchise Expand

Small Business Sales and Optimism Rise

Three Strategies to Recharge Your Business

Strengthen Your Company’s Cash Flow

Secure the Credit You Need to Grow

Four Keys to Financing a Business Purchase

Building a Game Plan for GrowthA fresh approach to banking helps a sporting goods company boost profits

From Union Bank®—The Small Business Banking Special ist | 2014/2015

Success Guide™ S M A L L B U S I N E S S

The past few years have been a testament to the resilience and grit of small business owners. The recovery has been slow for many, and a mood of cautious optimism remains. Yet the economy continues to build momentum and many signs of growth are appearing in a number of sectors. Sales are up significantly since last year, and capital spending and full-time hiring continue to inch upward.

As the economy continues to rebound, business owners need sound advice and reliable sources of capital to seize opportunity. Union Bank has proudly served small business owners for over 150 years, and we remain committed to providing our clients with the solutions and guidance needed to thrive in any climate. We’ve quadrupled our lending to small companies within the past three years* and continue to invest in innovative cash management products to help our clients be more efficient and better prepared to respond to a dynamic marketplace. We have also partnered with community-based financial institutions to expand the sources of capital for businesses in all the markets we serve. This enables us to increase the number of businesses eligible for financing and helps to ensure that businesses seeking financing will have access to sources of capital where they will be treated honorably.

This year’s Small Business Success Guide offers a closer look at how we are helping small businesses prosper. You’ll find tips and insights to help you grow and protect your bottom line, including:

• Results from the 2014 Union Bank Small Business Economic Survey, which highlights the gains businesses have made in the past year and the challenges they continue to face

• Success stories of business owners who partnered with Union Bank for business acquisition financing and other banking tools to reach their objectives

• Strategies for recharging your company to expand your opportunities and increase profitability

• Advice for building a banking relationship that contributes to your business success• Tips for strengthening your cash flow and improving your prospects when it is time

to seek financing

Steadfast support to reach your goalsAs you set a course for your business in the months and years ahead, you can count on Union Bank for the resources and advice you need to succeed long term. We remain ready with a full range of products to help you expand, purchase assets and maximize efficiency, coupled with one-to-one service to meet your specific needs.

The West Coast remains rich with opportunity for small businesses, and we will continue to work alongside you to help you capture it. As a strong and dependable partner to the region’s business owners for over 150 years, we look forward to serving you for 150 more.

Todd Hollander Head of Business Banking, MUFG Union Bank, N.A.

*Small business lending volume: 2010, $170 Million; 2011, $305 Million; 2012, $598 Million; 2013, $734 Million

Welcome to the Union Bank Small Business Success Guide

CONTENTS

Welcome 3

Rising Tides 4

Three Strategies to Recharge Your Business 6

Maximize Your Social Media Presence 7

Building a Game Plan for Growth 8

Energize Your Company’s Cash Flow 9

Charting a Course for Success 10

Secure the Credit You Need to Grow 11

Service at the Speed of Business 12

Four Keys to Financing a Business Purchase 13

Making the Right Move 14

Q&A: Partnering for Prosperity 15

About MUFG Union Bank, N.A.

MUFG Union Bank, N.A., is a full-service bank with offices across the United States. We provide a wide spectrum of corporate, commercial, retail banking and wealth management solutions to meet the needs of customers. The bank also offers an extensive portfolio of value-added solutions for customers, including investment banking, personal trust, capital markets, global treasury management, transaction banking and other services. With assets of $108.8 billion (USD), as of June 30, 2014, the bank has strong capital reserves, credit ratings and capital ratios relative to peer banks. 

MUFG Union Bank, N.A., is a proud member of the Mitsubishi UFJ Financial Group (NYSE: MTU), one of the world’s largest financial organizations with total assets of approximately ¥259 trillion (JPY) or $2.5 trillion (USD),1 as of June 30, 2014. MUFG Americas Holdings Corporation, the financial holding company, and MUFG Union Bank, N.A., have corporate headquarters in New York City.

1Exchange rate of 1 USD=¥101.36 (J-GAAP) as of June 30, 2014.

S M A L L B U S I N E S S S U C C E S S G U I D E 3

S M A L L B U S I N E S S S U C C E S S G U I D E 54 U N I O N B A N K

“

Direction of Country and Economy 2014 2013 2012

Think country is on right track 46% 44% 30%

Think national economy is on right track 41% 31% 25%

Think state/local economy is headed in right direction

49% 41% 34%

Think their business is headed in right direction

87% 83% 80%

Believe economic climate for small businesses will improve in next two years

51% 45% 48%

Sales 2014 2013 2012

Up from last year 37% 31% 32%

Same as last year 39% 33% 35%

Down from last year 24% 35% 33%

Access to Credit 2014 2013 2012

Applied for credit last year 19% 14% 10%

Received credit (if applied) 78% 62% 61%

Applied for government-assisted loan (among credit applicants)

42% 27% 32%

Found it harder to access credit over past two years

33% 42% 41%

Small business owners are upbeat about their prospects and are cautiously planning for growth, the 2014 Union Bank Small Business

Economic Survey finds. Slightly more businesses plan to hire full-time workers and raise capital spending this year than in 2013, and fewer plan to trim staff.

The survey, which included 400 business owners in California and 100 in the Pacific Northwest, found that businesses reporting sales increases considerably outnumbered those reporting decreases, compared with nearly equal numbers in recent years. Yet effects of the downturn still linger as businesses continue to grapple with layoffs and remain wary of the economy.

“Small business owners are seeing increased revenues and are investing more in their companies, but the mood is still one of tempered optimism,” says Managing Director Todd Hollander, head of the Business Banking Group at Union Bank. “Having been through a very long, deep recession and in many cases, painful staffing cuts, it’s only natural that they remain cautious.”

A tilt toward optimismConfidence in the U.S. and state economies has improved significantly over previous years, though the majority of respondents still believe both are on the wrong track. Around 4 in 10 (41%) say the U.S. economy is headed in the right direction, up 10 percentage points from 2013 and 16 points from 2012. Nearly half (49%) say the same of their state’s economy, up eight points from last year and 15 points from 2012. Respondents in the professional services sector—e.g., physicians, attorneys and certified public accountants—are most optimistic, while those in retail and personal services—e.g., auto repair, salons and dry cleaners—are most pessimistic.

Yet business owners remain overwhelmingly confident in the direction of their own companies, with nearly 9 in 10 saying they are headed in the right direction. This is reflected in upticks in planned full-time hiring and spending. Of business owners expecting to hire in 2014, 69% plan to add full-time staff, up 14% from last year. Twenty-six percent plan to raise capital expenditures, up three points from last year.

The outlook is particularly bright for women-, minority- and veteran-owned businesses. Nearly 3 in 10 plan to hire this year, more than three times the percentage of non-certified businesses. More than one-third plan to raise capital spending, compared to one-fifth of other companies. More respondents from women-, minority- and veteran-owned businesses also reported sales increases than their counterparts in other companies.

Credit picture improvesOverall, small businesses found it easier to access credit last year than at any time since the recession. Nearly 1 in 5 applied for credit in 2013, and

Rising TidesOPTIMISM GROWS AS SALES RISE, OUR ANNUAL SURVEY OF SMALL BUSINESSES FINDS

About the 2014 Union Bank Small Business Economic SurveyFor 14 years, Union Bank has conducted an annual survey of small businesses to gain a better understanding of their concerns, needs and goals. Working with its survey provider, Union Bank surveyed 500 small business principals (400 in California and 100 in the Pacific Northwest) online in January 2014. The businesses all post $15 million or less in annual sales and have been in operation for at least two years. Based on the sample size, the survey results reflect a �4 point margin of error 95% of the time; California results reflect a �5 point margin of error 95% of the time. Pacific Northwest results reflect a �10 point margin of error 95% of the time. 

of those, 78% were approved, up from 62% in 2012. Significantly more businesses applied for government-assisted loans compared to last year (42% vs. 27%).

Some respondents say the Small Business Jobs Act has eased access to credit. The legislation encourages lending to small businesses, provides tax incentives, and expands Small Business Administration loan programs. Of the 18% of businesses reporting they have benefited from the act, 49% say it has improved access to credit, up 16 percentage points from last year. The leading benefit was tax relief, cited by 53% of business owners.

Health care impact limitedTwo-thirds of the respondents say they have not been affected by changes related to the Affordable Care Act. Of those who report an impact, 86% say their costs have increased. Businesses with 20 or more employees and those with revenues of over $1 million were more likely to indicate they had been affected compared with their smaller counterparts.

Respondents gave the federal government mixed marks in its efforts to stimulate small businesses, with 28% calling these efforts “good” or “very good” and 42% calling them “poor” or “very poor.” Business owners under age 45 were significantly more likely to give the government favorable ratings than were business owners ages 56 and older.

“Business owners remain concerned about tax and regulatory policies, and those concerns are curbing their plans for growth,” Hollander says. “Now more than ever, small businesses need stability. Union Bank has been serving small business owners for over 150 years, and we remain committed to providing the sound advice, products and services they need to achieve their goals.” n

”

Union Bank has been serving small business owners for over 150 years, and we remain committed to providing the sound advice, products and services they need to achieve their goals.

S M A L L B U S I N E S S S U C C E S S G U I D E 76 U N I O N B A N K

Maximize Your Social Media PresenceUsing social media can be a low-cost and potentially very effective way to attract and retain customers. In fact, social media and other web-based tools ranked second among the tactics business owners use to grow and maintain their companies, the 2014 Union Bank Small Business Economic Survey found.

Whether you are just launching a social media presence or want to make it more effective, these tips can help you improve your efforts:

Define your goals. Like all other aspects of business planning, you should have concrete, measurable goals for your social media efforts. These could include gaining five new leads in the next month or drawing more people to your in-store events. Your goals should guide your social media outreach.

Review your platforms. Be sure that the social media platforms you currently use are truly the best ones for your business—i.e., that they are where your customers and prospects are and let you showcase your strengths. For example, retailers may benefit from using Facebook to post product photos and answer questions, while an accounting firm might post tax-related tips to build a following on Twitter. If you are not yet on social media, consider surveying your customers about the platforms they use.

Create a posting plan. Planning your posts in advance can help ensure that your outreach is consistent and that it aligns with your goals. For example, a software company might begin blogging a few months before a launch about the problems its new software will solve, and link to the posts from its LinkedIn page. Closer to the software’s release, the company might link to a YouTube™ video explaining the product’s key features. You can always adjust your plan once it’s in place, but having a framework will help organize your efforts.

Measure your results. Implement a system for tracking the results of your efforts. For example, if you hope to drive visitors to a page on your website to sign up for a free trial, a service such as Google Analytics™ (www.google.com/analytics) can help you gauge how much traffic comes from your social media pages. You can also use a service such as HootSuite™ (www.hootsuite.com) or Sprout Social (www.sproutsocial.com) to access analytics for social platforms.

The rebounding economy presents a good opportunity to re-evaluate your company and take a fresh approach that can boost your business

prospects. Most businesses can benefit from an occasional shift in approach to business development strategies, management practices or even offerings.

This calculated shake-up can help you capture new opportunities and accelerate growth. Here are three strategies your peers have used to reinvigorate their companies and become more competitive and profitable. Try putting one or more of them to work in your own company:

1. Refresh your marketingReview your current tactics to see how you might improve them, and consider whether adding new tactics and tools could help you meet your business goals. One area to start with may be your website, particularly if it hasn’t been updated recently. Be sure it still reflects your business and what you do, and that key information, such as your address, hours and phone number, is easy to find. Also consider adding elements that could make your site a more effective marketing tool. These may include e-commerce capabilities, customer testimonials, or links to a blog or white papers.

As more people use smartphones and tablets to access the Internet, making it easy for prospective customers to find your business through these devices can give you a competitive edge. If your website does not “render well” (appear in an easy-to-view way) on smartphones and tablets—or the information customers would need on the go is not easy to find—consider a service that converts websites to mobile-friendly versions. An online search will bring up affordable options for small businesses. You might also explore using text messaging to prospects who have agreed to be contacted to announce daily specials, extend special offers, or send appointment reminders through mobile phones.

2. Explore partnershipsPartnering with a company that offers complementary products or services can be a good way to expand your resources and attract new customers. Successful partnerships can take many forms; for example, a financial advisor might partner with a CPA firm to refer clients to each other, while an advertising agency might team up with a video production firm to extend its capabilities.

Look for partnering opportunities through networking events, online resources such as LinkedIn groups, or your local chamber of commerce.

Three Strategies to Recharge Your BusinessCAPTURE NEW OPPORTUNITIES BY TAKING A NEW TACK

Did You Know?

Customer service is the number one reason consumers choose small businesses over larger ones, cited by 86% of respondents in a 2013 Web.com™/Toluna™ survey.Source: Consumer & Small Business Perception Survey, Sept. 2013, www.web.com/images/SBDM_Survey_Overview.pdf

Prepare a few concepts that might appeal to prospective partners’ customers—for example, a catering business wanting to work with a wedding photography firm might offer a small discount to the firm’s customers. Set measurable goals for your partnerships, and assess your progress regularly to ensure they are worth maintaining.

3. Revisit your offeringsConsider whether expanding your products or services or retooling your offerings could help you better serve your target market and grow your revenue. Ask your best customers for feedback and solicit ideas from employees, particularly those who interact with customers. For example, a home goods boutique might start offering interior design services to meet customer demand, while a realtor might launch a workshop series for first-time homebuyers. You might also consider repurposing an offering to help you capture a greater market share. For example, a software firm whose core product is geared toward business bookkeeping might introduce a similar offering for consumers.

As part of re-evaluating your offerings, ask yourself if there are products or services you should cut. Perhaps a certain area of your business is no longer profitable enough to justify investing in it. Consulting with your accountant can help you determine which parts of your business are most and least profitable. n

8 U N I O N B A N K

Cash flow is the lifeblood of any business. Keeping it strong and steady is key to sustaining operations and investing in long-term growth. By taking a proactive

approach to managing your cash flow, you can help minimize crunches and better direct funds to create and capture opportunities. Use these steps to keep your cash flowing smoothly:

Revisit expensesGiven the day-to-day demands of running a business, this simple step can easily be overlooked. Review your vendor pricing and fixed expenses such as phone and Internet services to see if less expensive packages or providers might meet your needs. Shop around for competitive quotes before renewing annual contracts such as insurance policies or maintenance plans. If you use shipping services frequently, talk with your provider to review options and find ways to lower costs.

Look for opportunities to save on business purchases as well. For example, if you need to replace equipment, consider buying used. In many cases, a used item in good condition can serve your purposes just as well as a new item, and at a far lower cost.

Build and monitor forecastsGuard against surprises that could stem your cash flow by keeping accounting records and forecasts up to date. Create a three- to six-month forecast that carefully details income and expenses, using past monthly income and cash flow statements and your balance sheet as a guide. Once your forecast is complete, compare your actual expenses and sales figures against it and adjust your forecast if needed. Be sure to account for changes in business conditions such as higher costs of goods or shifting demand for your products or services.

Manage incoming and outgoing paymentsSend invoices as soon as a project is completed or an order has shipped. Specify a due date and consider offering a small discount for early payment—for example, 2% for payment within 10 days. If possible, provide multiple payment options, such as check, credit or debit card and electronic funds transfer, to make it easier for customers to pay. If you charge a late fee for overdue payments, be sure this is stated clearly.

Time bill payments so that you make them before they are due but don’t set yourself up for a cash crunch. Mapping out your incoming and outgoing payments can help you decide what to pay when, so that you hold on to cash as long as possible. If several bills are due at the same time, consider making arrangements to stagger the due dates if it will help smooth out your cash flow.

Talk with your business bankerYour business banker can direct you toward cash management tools to help you strengthen your cash flow. For example, a remote deposit service that lets you scan checks online from your office can speed up receivables, while a revolving line of credit can provide working capital to let you take advantage of early payment discounts. A strong banking relationship can also be key to securing financing needed to get through lean periods or invest in growth. n

Energize Your Company’s Cash FlowHELP GUARD AGAINST CASH CRUNCHES AND PROTECT THE HEALTH OF YOUR BUSINESS

Building a Game Plan for GrowthTEAMING UP WITH UNION BANK GIVES AN ENTREPRENEUR A BOTTOM-LINE BOOST

Did You Know?

Politeness counts when it comes to invoicing. Including terms such as “Please” and “Thank you” (e.g., “Please pay your invoice within” or “Thank you for your business”) can increase the likelihood of an invoice being paid by more than 5%.Source: FreshBooks, www.freshbooks.com/blog/2010/03/02/the-best-invoice-payment-terms-to-help-you-get-paid-faster-and-more-often

S M A L L B U S I N E S S S U C C E S S G U I D E 9

Most business owners can benefit from a fresh perspective every now and then. When it comes to banking, seeing things anew can mean big savings.

For Louis Talamantes, owner of sporting goods and apparel company Buddy’s All Stars, a fresh perspective on banking has saved his company more than $168,000 per year. It has also given him a stronger base for growth.

Louis was looking to refinance the buildings where he operates his business. After talking with several banks and not finding the right solutions, he challenged us to help him. We found a creative way to restructure his loans, which has saved him more than $14,000 per month and freed up funds to reinvest in his business.

“Union Bank really listened to my needs, and though the situation was complex, they found a way to make it work,” he says. “I felt that they were on my team and wanted to get it done as much as I did.”

We didn’t stop there. We reviewed Louis’s accounts and identified substantial savings. We are now setting up a merchant services account that will enable him to process orders remotely so that he can increase his trade show sales. By taking the time to understand his vision for his business, we are able to suggest products to help him realize it.

Looking ahead, Louis knows he can continue to rely on Union Bank as he explores new ways to grow his business.

“Union Bank goes above and beyond. They really care that they do the best possible job for me,” he says. “When you’re caught up in running your business, that support makes a big difference.”

Learn more about how Union Bank can help you reach your goals and find efficiencies. Talk with your business banker or visit www.unionbank.com/smallbusiness. n

U N I O N B A N K S M A L L B U S I N E S S S U C C E S S G U I D E 1 0 S M A L L B U S I N E S S S U C C E S S G U I D E 1 11 0

Credit is a powerful tool for many small businesses, helping to fuel growth, expand opportunities and

smooth ups and downs in cash flow. As business owners look to capitalize on the stronger economy, more are seeking—and receiving—credit. Nearly 8 in 10 businesses that applied for credit last year were approved, the 2014 Union Bank Small Business Economic Survey found.

Take steps now to improve your standing when it’s time to request financing. Follow these tips to help you meet your objectives:

Mind the “Five Cs”Lenders often make decisions based on the so-called “Five Cs” of credit. Lay the groundwork for good credit by monitoring these areas:

Character. What are your personal and business credit histories? Banks may also check references and review your business experience to gauge trustworthiness.

Capacity. Does your company have sufficient cash flow to comfortably manage payments?

Collateral. What non-cash business assets—property, equipment or inventory—can you use to secure a loan?

Capital. What is your personal net worth, and what is your business net worth?

Conditions. What external factors, such as changing costs or emerging competition, could affect repayment?

Watch your credit profileReview your company’s credit score with the major business credit bureaus and services: Dun & Bradstreet (www.dnb.com), Experian® (www.experian.com), Equifax® (www.equifax.com) and FICO® Small Business Scoring ServiceSM (www.fico.com/en/products/fico-small-business-scoring-servicesm-sbsssm-ssolution). Lenders may also check your personal score, particularly if your business is young, so monitor this as well. Be sure all the information in your reports is correct and up to date, especially shortly before you request a loan. Report any inaccuracies right away, and be sure you can explain any instances when you failed to meet a commitment.

Show good debt managementMuch of your credit score depends on making timely payments, so be sure to pay your bills by their due dates or earlier, if possible. Ask the companies you work with to

Secure the Credit You Need to GrowSHORE UP YOUR POSITION NOW FOR WHEN IT’S TIME TO TALK TO A LENDER

Charting a Course for Success HONESTY AND PERSISTENCE HELP A BUSINESS CHANGE HANDS SMOOTHLY

Did You Know?

Ask your CPA to prepare the financial documents you will need to provide to a lender. This can help boost your credibility.

John Jackson is well versed in the intricacies of marine electrical service and electronics. Yet when he wanted to buy Seattle-based Harris

Electric, he needed help navigating a different type of complexity.

After considering a few different banks, he turned to Union Bank for guidance. We committed ourselves to understanding the nuances of John’s business so that we could connect him to the right solutions.

“Sometimes, bankers want things to fit nicely into a neat package,” John says. “Union Bank wasn’t intimidated by the legwork and complexity involved in this situation. They assured me they would be there every step of the way, and as the process unfolded, they explained to me what was happening in a language I understood.”

Thanks to our expertise navigating the SBA loan process, we were able to provide John with business acquisition financing and a substantial line of credit to help meet the specific needs of his company. John also needed treasury services and wanted the simplicity of consolidating his business with a bank that he could trust.

“I know if I ever had a problem that needed input from Union Bank, I could count on them to help me work toward a solution,” he says. “That, to me, is absolutely invaluable.”

Union Bank is committed to doing right by helping companies navigate today’s economic environment. If you need financing to grow your business, talk with your business banker or visit www.unionbank.com/smallbusiness to learn more. n

report your payment history to the credit bureaus if they don’t already, since having multiple accounts in good standing will help to raise your score. Pay down credit card balances and line of credit debts, as carrying high balances relative to your credit limit may lower your score.

Gather key financial documentsBe prepared to provide a complete financial snapshot of your company by assembling business and personal tax returns for the past three years; a current balance sheet showing all assets, liabilities and owner’s equity; supporting documents such as accounts receivable and payable aging reports; and an up-to-date income statement that shows how much revenue you have generated and how cash is being used. Lenders may also ask to see your business plan, so be sure it is up to date.

Know your borrowing needsA critical part of any loan application is a clear explanation of why financing is needed. Be sure you can articulate this, as well as the amount you think you will require. Detail how you will spend the money by providing specific cost estimates and relevant documentation. The more clearly you can explain your needs (and how you plan to repay), the easier it will be for your bank to approve credit. n

U N I O N B A N K S M A L L B U S I N E S S S U C C E S S G U I D E 1 2 S M A L L B U S I N E S S S U C C E S S G U I D E 1 31 2 U N I O N B A N K

1. Lay the groundworkIt is a good idea to talk with your banker even before you identify a business to buy. Your banker can help you create a budget, discuss financing options and alert you to key considerations involved in securing a loan. He or she can also connect you with a lending specialist and other important resources, such as legal and accounting professionals, with experience in business purchases. Once a purchase is complete, your banker can direct you toward cash management and other tools to help you manage your finances effectively.

2. Know the company’s valueThere are several approaches for estimating a business’s worth. Certain approaches or combinations of approaches are best for different types of businesses. For example, asset-based approaches, which estimate a company’s worth by determining what it would cost to re-create the business (e.g., equipment and inventory), are typically used for companies with substantial tangible assets, such as manufacturers or retailers. Income-based approaches, which multiply the net income of the business by a number called a “valuation multiple,” are often used for franchise businesses.

Because valuations can be complex, it is best to work with a certified appraiser who has experience with the type of business you are planning to buy. Your business banker or the American Society of Appraisers website (www.appraisers.org) can help you find an appraiser.

3. Prepare a down payment and collateralIn most cases, buyers need to provide a down payment equal to 20–30% of the purchase price. This can be a combination of buyer funds and financing from the seller of the company or franchisor. Sellers will often agree to this sort of arrangement to structure a deal that is agreeable to both parties.

You will also need to identify collateral, such as current business assets or equity in real estate. If you lack the collateral required for a conventional loan, you may still qualify for SBA financing, since the SBA guaranty is intended to help mitigate a shortfall in collateral if other factors are favorable. These include the overall financial strength of the business and the buyer’s qualifications.

4. Assemble documentsGather documents that demonstrate your financial health and that of the target company. These include:

• Personal tax returns for the previous three years• Personal financial statement, most recent• Target business tax returns for the previous three years• Accounts payable and accounts receivable aging reports• Debt schedules, if applicable

You should also update your résumé so that it highlights your experience within the company’s industry or relevant skills such as strong management experience. This can give lenders added confidence that could ultimately tip the decision in your favor. n

Service at the Speed of BusinessSWIFTNESS AND PREPARATION HELP A FRANCHISEE SEIZE A TANTALIZING OPPORTUNITY

Four Keys to Financing a Business PurchaseSOUND PREPARATION AND A STRONG BANKING RELATIONSHIP CAN HELP YOU REACH YOUR GOALS

When Amannda Schneider decided to buy a Five Guys Burgers and Fries® franchise territory, she knew she had to move quickly. Finding

a bank that would also move quickly was key. After evaluating several banks, she chose Union Bank to help her through the SBA loan process.

“Union Bank had the knowledge and the experience to anticipate potential stumbling blocks,” Amannda says. “They also brought a business mindset to the process—they wanted to do things quickly, and they wanted to do them right.”

We analyzed her financials and business plan to be sure they were sound, and we worked together to resolve questions quickly so no time would be lost. Shortly after Amannda secured the loan to buy her first franchise territory, we learned that a second territory was about to become available. Knowing she had the appetite and acumen to grow, we started on the paperwork for a second loan the same day that she made her decision.

“The busy season was coming, and we had the opportunity to close in the middle of it or before it,” Amannda recalls. “We were able to close the deal three weeks early, which allowed me to get a jump on that business.”

Amannda’s focus is now on opening stores within her franchise territories. As she expands, Union Bank will be there to provide the support—and the swiftness—she needs.

“Banks sometimes move at the speed of slow. Union Bank moves at the speed of business,” she says. “They do right by their customers by saving us time, which saves us money. We’re able to focus on our businesses, not on the banking.”

To learn how Union Bank can provide acquisition financing or other types of capital to grow your business, talk with your business banker or visit www.unionbank.com/smallbusiness. n

Buying an existing business can offer compelling advantages over starting one from scratch, such as an established customer base and existing revenue stream. If you’re considering a business purchase,

now may be a particularly good time. The 2014 Union Bank Small Business Economic Survey found that 1 in 5 small-business owners plan to change their company’s ownership structure this year, and of those, 29% plan to sell their business, up from 21% last year.

For many would-be business buyers, an actual purchase hinges on securing financing. These tips can help improve your odds:

Did You Know?

About 10% of all SBA loans go to franchisees, with a maximum size of $5 million. Source: Small Business Administration

1 4 U N I O N B A N K

Q. What are a few key ways a banker can help a business owner?

A. Bankers can provide business owners with a valuable big-picture perspective. A lot of business owners get so caught up in the day-to-day routine of running their companies that they might not consider questions such as where are they headed, how much would they like to grow, or who will keep the business running when they leave. A banker can help them think through these issues. Bankers can also help their clients plan courses of action based on external factors such as interest rates and what’s happening in the marketplace.

Q. What are some of the products and services that bankers can recommend to help business owners better manage their finances?

A. Cash management products are an important piece because healthy cash flow is so critical to business success. Specific products may include remote deposit services to help speed up funds entering accounts or electronic debit services to help automate payments from customers.

Financing tools are also important. Along with loans, lines of credit and equipment financing, there are products business owners might not know about. For example, if you rent your business space but would like to own your own building, your banker could help you explore the SBA 504 program, which allows business owners to purchase a building with just 10% down.

Q. What are the key success factors in a banking relationship?

A. Honesty and openness. The more complete the information business owners provide, the more accurately bankers can pinpoint trouble spots and recommend appropriate solutions. A good analogy is the relationship someone has with a doctor. If you don’t provide complete and honest information, your doctor can’t help you take good care of your health.

Q. Many business owners bring their personal banking to their business bank. What are the advantages of having both in the same place?

A. Business owners can benefit from having a team approach and being able to meet with their business banker, their product specialists and their personal banker at the same time. This can give the banking team a more complete picture of the business owner so that they meet his or her needs better. Having business and personal banking with the same bank can also make transactions very smooth. For example, if a business owner needs to move funds from a personal to a business account temporarily, that can be done very easily.

Q. What are the first steps a business owner should take in building a strong banking relationship?

A. Ideally, your banker will be a trusted advisor, so you have to choose someone you like and can connect with. Once you do, you can begin to establish trust. Be open and honest. Share information, and ask your banker for advice. Building a relationship takes time, but by putting in the effort, your banker can give you the help you need when you need it. n

Santee, California–based Chula Vista Electric has built its reputation on delivering high-quality work and keeping its word. When it was time to move its headquarters

and seek financing to purchase the building, the principals looked for the same qualities in a banking partner.

“We talked with several banks, and it was Union Bank that responded to our questions most quickly and presented us with clear solutions,” says Bob Friar Jr., co-owner of Chula Vista Electric. “We had a very tight timeline for the purchase, and we knew if we had any chance of getting it done, Union Bank was going to get us there.”

We made it our mission to understand the company’s objectives and find the best ways to meet them. Our experience financing commercial properties enabled us to work quickly. We helped Chula Vista Electric purchase the building by providing an SBA loan with terms that met its needs. We also provided financing for building improvements and a line of credit to help with working capital.

Based on our team’s ability to assist them, the principals of Chula Vista Electric ultimately moved the company’s deposit and merchant services accounts over to Union Bank. They wanted to centralize their business with a bank that held the same values that they did.

“With Union Bank, we never felt like just a number,” says Robert Friar Sr., who owns Chula Vista Electric with his son. “We felt like we were the only customer.”

If you are looking to expand or relocate your business, Union Bank can work with you to find a solution that meets your specific needs. Talk with your business banker or visit www.unionbank.com/smallbusiness to learn more. n

Making the Right MoveEXPERTISE AND CLEAR ADVICE HELP POWER A SUCCESSFUL BUILDING PURCHASE

Building a banking relationship is one of the most important steps you can take as a business owner. A banker who understands your business can serve as an extension

of your team, helping you manage your finances more effectively, spot new growth opportunities and find innovative ways to meet your goals.

Diana Hallal, Director at Union Bank, explains the importance of a strong banking relationship and how you can help develop it.

Q&A: Partnering for ProsperityNURTURE YOUR BANKING RELATIONSHIP TO HELP YOUR BUSINESS THRIVE

S M A L L B U S I N E S S S U C C E S S G U I D E 1 5