2024 Holiday Celebrations Photo Gallery
The VACEOs community came together to celebrate the holidays in Richmond and Roanoke. We at VACEOs couldn’t be more grateful to go into our 25th Year with such a wonderful community. Wishing you and your family health, happiness and prosperity in 2025.
Maximize Your Loan Potential
3 Strategic Steps
Securing the right loan for your business can be the catalyst that helps your company grow—but just like with any major investment, it requires effective marketing. Successfully securing financing is not just about applying; it’s about presenting your business in a compelling way that demonstrates its strengths and potential. In essence, you are marketing your business to the bank, and much like an investor pitch book, your loan package serves as a critical sales tool.
Your loan application will outline your business details, financial data, and growth opportunities. You effectively demonstrate why a bank should invest in your business through a loan by delivering a compelling view of your company’s strengths, market position, and financial health.
Step 1. Be financially organized.
Before starting the loan process, ensure your balance sheets and income statements are in order. Much like investors, banks are looking for businesses that show strong financials, growth potential, and sound management. This means there cannot be significant year-to-year variances that require an explanation. It also means retained earnings must align with the opening balances for the following year. Your loan package should include the following critical components to position your business to secure a loan with favorable terms:
- Financial Statements: Clear and accurate financials are essential. Banks want to see well-organized balance sheets, income statements, and sources and uses with minimal variances.
- Business Strategy: Communicate how you plan to use the loan and how it will help grow or stabilize your business.
- Risk Mitigation: Banks want assurance that you’ve considered the risks and have plans in place to manage them. Address these directly in your package.
Step 2. Create your loan application/pitch book.
A thoughtfully organized loan application acts as a powerful marketing tool, presenting your compelling narrative that must resonate with banks. Your goal is to persuade the bank that your business is a worthy investment by providing a comprehensive view of your company’s strengths and financial stability. Like a pitch book, your loan package should highlight the following:
- Company Overview: Briefly describe your business, history, and your industry experience.
- Market Analysis: Provide insight into your customer base, market trends, and competitive landscape. Address any risks and outline how you are mitigating them.
- Financials: Include detailed financial statements, both past performance and future projections, to illustrate your ability to manage and grow with the loan.
- Team Strengths: Highlight your leadership team and their credentials; strong leadership reassures lenders of long-term stability.
Just as the structure and appearance of a pitch book can influence investors, the way you present your loan package can impact a bank’s decision. A well-organized, visually appealing application can make it easier for banks to understand and trust your business’s financial health.
3. Leverage your relationships.
Lastly, remember that loans are not just transactional; they’re relationship-driven. Take the time to build a relationship with your banker before starting the formal loan process. A good commercial banker can help explain complex underwriting requirements, provide invaluable insights into what the bank is looking for, and guide you through the process.
Also, talk to your network of business professionals—CPAs, lawyers, and insurance agents—to get recommendations for banks and loan officers who are a good fit for your company’s size and needs.
Just as a pitch book is used to secure deals with investors, your loan package is your opportunity to sell your business to the bank. By crafting a strong narrative, presenting clean financials, and building strong relationships, you set yourself up for success. Securing a loan doesn’t have to be intimidating if you’ve done your homework. Preparation is key.
Contributed by Billy Johnston, Warren Whitney
Billy Johnston is a Director of Warren Whitney and brings over 35 years of extensive experience in financial management and leadership. Billy works collaboratively with clients to improve profitability, streamline processes, and motivate coworkers to get their best performance. He manages a big-picture perspective and dives deep into the details to ensure accurate reporting. He works on an ongoing, part-time, fractional basis to provide a cost-effective way to supplement your finance function and build for the future. To learn more, contact Kyle Ficker at kficker@warrenwhitney.com or 804.282.9566.
MAKING POTENTIAL HAPPEN
What Makes Peer Groups Great: Summary of a Qualitative Analysis of Executive Peer Groups
Introduction
Executive peer groups, like those facilitated by the Virginia Council of CEOs (VACEOs), play a significant role globally, with over 100,000 executives involved in various organizations such as EO, YPO, and Vistage. The VACEOs alone boasts over 200 CEO members across Virginia. These groups operate under strict rules emphasizing confidentiality, candor, vulnerability, and a protocol of experience sharing over advice-giving. Meetings generally follow a structured agenda featuring updates on professional and personal challenges, followed by presentations on key issues, where members share their experiences under the guidance of a facilitator. Additionally, annual retreats blend business and leisure, further fostering group cohesion.
Despite their prevalence, little research has explored why some executive peer groups outperform others. These groups’ confidential nature makes external study challenging. However, Mike Matthews, a long-term VACEO member and past chair, leveraged his insider access to conduct research to understand the factors contributing to the success of some peer groups over others.
Participants
To explore why certain executive peer groups thrive, Matthews employed a qualitative research method focusing on the top-performing groups within VACEOs. He selected 35 members from the four highest-ranked groups, as determined by annual member surveys. These surveys asked members to rate various aspects of their group experience on a 10-point Likert scale. They provided a Net Promoter Score by inquiring how likely members were to recommend VACEOs to others. Participation in the study was voluntary, with assurances of confidentiality to ensure honest and open feedback.
Discussion
The analysis of focus group transcripts revealed several key themes: Camaraderie, Safe Environment, Whole Person, Training, Protocol/Process, and Culture.
Camaraderie emerged as a critical element, with participants highlighting the importance of openness, experience sharing, and vulnerability in building trust and commitment within the groups.
Training is provided initially and recommended annually by VACEOs. While not all groups adhere to the annual training, those that do tend to operate more effectively, suggesting the importance of regular training in maintaining group performance.
Group Forming involves creating the group and onboarding new members, establishing norms, expectations, acceptable behaviors, boundaries, and the group’s purpose. Consistency in these processes contributes significantly to group effectiveness.
A Safe Environment is crucial, with members expressing a high degree of trust in the confidentiality of their shared information. This trust fosters connectedness, belonging, and a willingness to share vulnerabilities, strengthening group cohesion.
Culture encompasses the beliefs, values, expectations, assumptions, and perceptions guiding behaviors within the group. High-performing groups often exhibit cultural norms such as punctuality, preparation, compliance with bylaws, and adherence to procedures.
Additional Observations
Other noteworthy observations include recognizing members as Whole Persons, and acknowledging that CEOs face personal and professional challenges. Participants described the peer group as a support system for all aspects of life, not just business, enhancing the holistic well-being of members.
The concept of Protocol and Process was also prevalent. Groups follow established protocols and processes, with effectiveness often waning as time passes from the last training. These protocols provide a structure for regulation and conflict resolution through processes like “clearing the air,” where members address interpersonal issues directly.
Leadership was another recurring theme. High-performing groups typically have influential leaders who guide the group and set the tone. Whether through regular rotation or longer tenures, reliable leadership is crucial for maintaining group performance.
Conclusions
The success of high-performing peer groups is attributed to a combination of Camaraderie, Training, Group Forming, Safe Environment, and Culture. The integration and consistent practice of these elements drive group success. The concept of “fit,” where multiple activities interact and reinforce one another, is central to this success. For instance, a safe environment enables camaraderie, periodic training upholds a culture driven by protocol, and the absence of any of these elements weakens the group’s effectiveness.
The economic benefits of participating in these groups, in terms of both time and money, are seen as invaluable by members. However, without the consistent practice of all these components, the benefits could diminish, potentially making the costs outweigh the gains. Effective leadership and the support mechanisms of the larger organization are crucial in sustaining these high-functioning peer groups.
Mike Matthews has been a member of the Virginia Council of CEOs since 2009, having served as board chair, board member, and committee chair. He is currently pursuing a Ph.D. in Organizational Leadership. This article summarizes a research paper Mike developed on Group Behavior. His findings were reported to the VACEO board for consideration and were presented at the 2024 International Conference on Management, Leadership, and Business Intelligence in Houston, Texas. The full research paper is available by contacting Mike at MMatthews@PSMJ.com.
Member Profile: Amy Baril of twotango collaborative
Q: Where did you grow up and tell us a little about yourself.
A: I grew up in the best city in the world, Richmond, VA. I attended Virginia Commonwealth University (Go Rams), and I am a boomerang Richmonder, having moved away for a little over a decade, then moving back with my husband and daughter.
Q: Please tell us about your journey to become a CEO.
A: I never aspired to be a CEO, but sometimes opportunities come to you that are too good to let pass. I started my career as an assistant media buyer at Circuit City Stores, moving then to The Martin Agency, McKinney, Blue Cross Blue Shield North Carolina and then to NDP advertising agency, (Now Two Tango Collaborative). At Two Tango, I had the opportunity to move up in the agency from Media Director to VP of Media, to President and now CEO. I love everything about being a CEO, the challenges of learning, running a business, and connecting with other leaders, the opportunities to give back to an amazing city and to create a place where people love to work.
Q: How are you promoting leadership development at twotango collaborative?
A: Every year we ensure that we provide opportunities for growth. Whether that is seminars, conferences, courses or serving the community on boards our team may love. It is a priority to give back to our team. We also promote from within first, and then look outside of our firm if needed.
Q: Are you working on any new business ideas?
A: Yes, being a Collaborative* is by design. We do not just do advertising; we are constantly providing solutions that go beyond the normal advertising agency. Shhhhh don’t tell, but we have more on the horizon.
Q: Are there any national/business authors that you follow? What is it about them or their message that resonates with you?
A: I am a huge fan of Mel Robbins. She has an inspirational story of perseverance and to never give up. She also provides a balance of data with the human factor in business, life, community and the journey of life. Her messages are backed by science, not just ‘fluff’. I also enjoyed Who Says Elephants Can’t Dance: Inside IBM’s Historic Turnaround by Lou Gerstner. A great book about the transformation of IBM’s business and its evolution in the early 1990’s to become a critical consultant business model. In my field, change is constant, so understanding how to stay ahead and evolve is critical.
Q: When you are not leading twotango collaborative, what do you like to do?
A: I love music, everything about it. I love going to shows and looking around to see 10,000 that normally would never be in the same space, but this one thing brought us all together, no matter your background, value system, race, religion, sexuality… you are all there to share in an experience.
I love spending time with family and friends chilling in our back yard around the fire pit, going to movies, eating out (have I said how amazing Richmond is with the restaurant scene).
Q: You attended our Fall Leaders Conference with your team. Do you or your team have a takeaway from the experience?
A: “Isn’t that awesome” is something we still say. We came away feeling rejuvenated in how to engage with our clients, and each other. To ask the tough questions in a different way. To stay focused on what really matters.
Q: Tell us how you are involved in the community.
A: I am President of the American Marketing Association of Richmond, a volunteer board with the purpose of sharing, learning and networking with Richmond’s great marketing minds. I am also on the board of rvaTech Foundation that supports STEM Education and Community Development.
Q: Since you’ve been a member of VACEOs, how have you grown as a CEO?
A: I came into VACEOs with an open mind, not sure what to expect and in short form was thrilled to have a community where I could be open, honest and supported. I have learned many other CEOs have the same challenges, have walked in my shoes so to speak and just ‘get it’. Which has been valuable to me. I have also learned I have much to offer to other CEOs through my diverse career and experiences.
Next Session of Roundtable Program for Key Executives Begins in February 2025
Key Executive Roundtables is our peer learning experience for “second in commands.” We created a peer learning experience for COOs, GMs, number twos, etc., two years ago and have run two annual sessions. We are ready to announce our third Key Executive Roundtable program, to begin February 2025!
Learning with peers accelerates the abilities of professionals. We know that from decades of serving CEOs in this way.
VACEOs is offering a cohort-style program for key executives from small and medium sized businesses that will:
- Create meaningful connections with other professionals. A trusted network.
- Accelerate the learning and growth of these professionals by expanding their perspectives and exposing them to others’ experiences.
- Connect them with experts from the community in a wide range of disciplines.
The next session of Key Executive Roundtables will form roundtables of 8 to 12 executives, who will meet every other month from February to October 2025. These three-hour meetings will be led by a professional facilitator and consist of two elements.
- A confidential peer roundtable experience that gives everyone the chance to share issues and opportunities, and to learn from one another’s experiences. Essentially, a condensed version of our CEO Roundtables format. Participants are expected to commit to 100% attendance.
- Learning from subject matter experts on topics like strategy, execution, culture, technology, compliance, finance, HR, marketing, sales, etc.
For non-meeting months, the group will be encouraged to meet informally with funds available for social meetings.
This is not a VACEOs membership, but a program that we are offering to key executives of both member and non-member firms. Key Executive participants will not be included in VACEOs events.
Cost for this program is $2,600 for VACEOs members’ key execs, and $2,850 for execs from non-member organizations. Fees are billed after acceptance. Commitment to attend all 5 meetings is required.
You can apply here. Deadline for applications is December 15.
$100 off for applications received by November 1.
If you have any questions, please email info@vaceos.org.
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