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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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RESOURCES

Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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RESOURCES

How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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How Your Company Culture Should Drive Employee Benefits: A Lesson from Manufacturing

A Manufacturing Story: The Right Benefits for the Right Team

At East Coast Precision, a mid-sized manufacturing company in Florida, business was booming. Their team of 75 employees worked hard producing high-quality aerospace components, and their reputation for precision and reliability was unmatched. But as the company grew, its leadership team—Mark, the founder, and Sarah, the operations manager—realized their employee benefits needed a rethink.

The question wasn’t just about what benefits to offer, but why.

East Coast Precision had a unique culture. Their employees valued stability, but they also needed flexibility. Many had families, some were nearing retirement, and a few had been with the company since its early days. Their competitor across town shut down for two weeks every December, giving employees a built-in break. But Mark and Sarah knew that wouldn’t work for them—their production schedule relied on steady output, and some employees preferred to spread their vacation days throughout the year.

Then came the tougher decisions: PTO policies, sick days, and financial benefits. Some employees wanted a 401(k), but others, like newer hires fresh out of trade school, were more concerned about weekly take-home pay than long-term savings. The leadership team had to balance what was best for employees with what kept the business strong.

In the end, they set clear, fair policies:

  • A standard PTO structure that gave employees predictability while allowing some flexibility for emergencies.
  • A 401(k) plan with a company match—valuable for those who wanted it, but not the only benefit available.
  • A hard rule on consistency, but with room for exceptions. When a longtime employee, Miguel, was diagnosed with cancer, they made it clear that his extended time off was an exception, communicated transparently to the rest of the team.

The result? Employees felt valued, turnover dropped, and the company’s production remained steady.

Your Culture, Your Benefits

This lesson applies beyond manufacturing. Whether you run a law firm, a retail store, or a tech startup, the benefits you offer should reflect your company’s values and mission.

  • Set a Clear Standard: Employees need to know what to expect. Whether it’s vacation time, sick leave, or parental leave, consistency creates trust.
  • Make Room for Exceptions When It Matters: While consistency is key, life doesn’t always follow a rulebook. If an employee is battling cancer or facing another major life challenge, it’s okay to make exceptions—just be clear about why.
  • Choose Benefits That Fit Your Team: A 401(k) might be a great fit for a company focused on long-term stability, but maybe a student loan assistance program makes more sense for a younger workforce. There’s no one-size-fits-all approach.
  • Keep Employees Connected to the Mission: Benefits shouldn’t be just another HR checkbox. They should reinforce what your company stands for. If you value work-life balance, your time-off policy should reflect that. If teamwork is a core value, benefits that encourage collaboration—like company-wide retreats or group health programs—might be a better fit.

Further Insight: Lessons from Expandable Video Series

For a deeper dive into how company culture and leadership impact employee benefits, check out this episode of The Expandable video series:
▶️ watch here

This video highlights the importance of strong leadership in shaping workplace culture, ensuring that employees are supported while keeping the organization’s mission at the forefront. The same principles apply when designing benefits—leaders must make choices that align with their company’s values while balancing business needs.

Finding the Right Balance

Ultimately, employee benefits should be a reflection of your company’s identity. They should serve your employees while keeping the business strong and able to serve its customers. Whether that means closing for two weeks each year or offering flexible PTO, the key is to make intentional choices—ones that align with your mission and show employees that they matter.

At Surety Bank, we understand that businesses thrive when they build strong relationships—both with their customers and their teams. When you design benefits that truly fit your company culture, you create a workplace where employees feel valued, engaged, and ready to do their best work.

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Forget Growth for Growth’s Sake: Scale Your Company with Purpose

Forget Growth for Growth’s Sake. Scale Your Company With Purpose! 

Every business owner dreams of growth—the big contracts, the expanding team, the larger facility. Growth is exciting, but what happens when it outpaces your ability to sustain it? For small to mid-sized business owners, the challenge isn’t just getting bigger—it’s growing profitably. Scale too quickly, and you could find yourself losing control of your business. Scale too cautiously, and you risk stagnation. So, how do you strike the right balance?

The Growth Trap: A Cautionary Tale

Imagine you own a manufacturing company, and a massive order comes in. It’s a dream deal—10,000 units instead of the usual 1,000. You scramble to increase production, hiring new employees, ordering more materials, even taking on debt to finance the expansion. But a few months later, you realize you’re barely breaking even. The new employees aren’t fully trained yet, production costs have skyrocketed, and cash flow is tight. Your profit margins, which seemed healthy before, are now razor-thin. Worse, your suppliers have increased their prices due to the larger volume, but you didn’t adjust your pricing in time. You’re now operating at a loss, despite the influx of new business.

This scenario is all too common. Growth, if not managed wisely, can erode profits instead of increasing them. The key? Strategic scaling.

Profitability First, Expansion Second

In the early days, you might not be profitable, and that’s okay. Many businesses start in the red, investing in marketing, product development, and hiring. However, you must ensure you’re not losing money per product. If each unit costs $12 to make and you sell it for $10, no amount of scaling will save you—you’re just multiplying losses.

Similarly, new employees take time to become profitable. Hiring is an investment in growth, but it often takes months before an employee generates more revenue than they cost. Business owners must anticipate this ramp-up period and avoid over-hiring too soon.

Where to Focus Your Growth

Not all growth is created equal. The most efficient areas of expansion are those where costs scale more slowly than revenue. Prioritize these strategies:

  • Leverage existing customers – It’s often cheaper and easier to expand business with current clients than to acquire new ones. Upselling, cross-selling, and building long-term relationships can provide more reliable revenue.

  • Double down on profitable products – Identify which products or services have the best margins and focus your growth efforts there. If one product is highly profitable and in demand, scaling its production efficiently can drive sustainable revenue.
  • Use data-driven decisions – Let financial and operational metrics guide your expansion strategy. Growth decisions should be based on performance indicators, not just ambition.

  • Improve operational efficiency – Streamlining processes and cutting waste can make it easier to scale profitably. Investing in automation, refining supply chains, and optimizing production workflows can enhance margins even as volume increases.

Controlled Growth vs. Losing Control

Growth is exhilarating, but it must be controlled. Many business owners get so caught up in expansion that they give up too much equity, bringing in investors who eventually take control. Others overextend, running out of cash when things don’t go as planned.

Instead, keep growth sustainable:

  • Fund expansion wisely – Reinvest profits when possible, rather than relying too heavily on debt or outside investors.

  • Pace yourself – Don’t rush to fulfill a huge order if it means straining resources beyond capacity. Scaling too quickly without the right infrastructure can lead to operational failures and reputational damage.

  • Protect your ownership stake – Too much outside investment can leave you as a minority shareholder in your own company. Consider alternative funding strategies, such as strategic partnerships or revenue-based financing, to maintain control.

Avoid Growth for Growth’s Sake

It’s easy to get caught up in vanity metrics—chasing higher sales, expanding into new markets, or acquiring more customers—without asking whether that growth actually benefits the business. But growth is not a goal in itself; it should be a means to an end. Every expansion initiative should answer a fundamental question: Will this make my business stronger in the long run? If the answer isn’t clear, it may be a sign to reassess.

Strategic growth means planning ahead. Before you leap, have a roadmap. Set clear, measurable goals, such as: “We aim to increase production by 50% over the next 18 months, which should yield a 20% revenue increase while maintaining a 15% profit margin.” This approach ensures that growth aligns with financial health, rather than just inflating top-line revenue while squeezing profits.

Smart business owners don’t just chase expansion; they balance growth with profitability. They scale strategically, ensuring each step forward is sustainable, and never lose sight of their core business strengths. With a steady hand, you can grow your company without losing control of it—and that’s the real measure of success.

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Case Study – The Cost of a Bad Leader: Why Hiring the Right Leadership Is Crucial for Your Business

This is the first of a new series of fictional case study articles. The business principles are applicable to all industries, not just the industry mentioned below. 

Mike had spent years building his commercial construction company from the ground up. He took pride in his work, bidding on high-profile projects and assembling what he thought was a solid team. But as his company grew, so did his hiring challenges—especially when it came to leadership positions.

One project in particular—a multi-million dollar office complex—pushed his business to the edge. Under pressure to meet deadlines, Mike rushed to hire a new project manager, Tom, who came with an impressive résumé and glowing recommendations. But within weeks, cracks began to show.

Tom cut corners, ordered cheaper materials to save costs (without approval), and ignored safety protocols. Worse, he treated crew members poorly, causing skilled workers to quit mid-project. By the time Mike caught on, the damage was done. The project was behind schedule, client trust had eroded, and fixing Tom’s mistakes cost the company thousands.

Determined not to repeat the mistake, Mike changed his hiring approach. He thoroughly vetted new hires, conducted trial periods for leadership roles, and built a workplace culture that rewarded integrity and reliability. Within a year, his company had a team of dedicated leaders who took pride in their work—and it showed in their projects.

For businesses like Mike’s, hiring the right leadership isn’t just about filling roles—it’s about protecting the company's reputation, profitability, and long-term success.

The Importance of Hiring Strong Leaders

A business can only succeed if its leadership is competent, ethical, and aligned with company values. A poor leadership hire can derail entire teams, weaken morale, and ultimately cost the company in lost productivity and damaged relationships.

The problem isn’t just finding someone with the right credentials. Many executives, managers, and directors look great on paper but fail to lead effectively. Worse, some take advantage of their positions, making decisions that benefit themselves at the expense of the company.

Avoiding these pitfalls requires a thoughtful hiring strategy that goes beyond skills and experience to assess character, leadership style, and long-term commitment.

How to Hire the Right Leaders

When hiring for leadership roles, businesses should focus on finding ethical, capable, and accountable individuals. Here’s how:

  1. Refine Your Hiring Process
    • Conduct in-depth interviews that go beyond technical skills—ask situational and ethical questions.
    • Use work simulations, leadership assessments, or trial periods to see candidates in action.
    • Verify references carefully and speak to past employers about leadership style and integrity.
  2. Prioritize Cultural and Ethical Fit
    • A great leader must align with company values. Someone who lacks integrity, respect, or teamwork skills can cause more harm than good.
    • Clearly communicate your company’s mission and culture during the hiring process to attract leaders who share your vision.
  3. Set Clear Expectations for Leadership Roles
    • Define what success looks like for the position, including decision-making authority, accountability, and ethical standards.
    • Be upfront about company policies, workplace expectations, and leadership responsibilities.

How to Retain Great Leaders

Even the best leadership hire won’t stick around if they feel undervalued or unsupported. To keep strong leaders, businesses should:

  1. Foster a Leadership-Friendly Culture
    • Create an environment where leaders feel empowered to make informed decisions while staying accountable.
    • Provide opportunities for collaboration and mentorship to help leaders grow.
  2. Offer Competitive Compensation and Growth Opportunities
    • Leadership talent is in high demand. Ensure your pay, benefits, and perks are competitive within your industry.
    • Provide ongoing professional development, including leadership training and career advancement opportunities.
  3. Maintain High Ethical and Performance Standards
    • Hold all leaders accountable to the same standards. If employees see favoritism or unethical behavior in management, morale will suffer.
    • Encourage transparent communication and decision-making to build trust within the company.
  4. Recognize and Reward Strong Leadership
    • Leadership can be a difficult and often thankless role. Recognizing and rewarding great leadership fosters loyalty and encourages long-term commitment.

Final Thoughts

Hiring and retaining the right leaders is just as critical—if not more so—than hiring the right employees. Leaders set the tone for company culture, influence productivity, and ultimately determine business success.

If your company has struggled with hiring leadership roles, it’s time to refine your hiring process, emphasize integrity, and invest in leadership development. By learning from mistakes—like Mike did—and implementing better hiring and retention practices, businesses can build a team of strong, ethical leaders who drive long-term success.

For more pratical information on hiring for a leadership position, check out this recent episode of the Expandable Show. https://www.youtube.com/watch?v=NtRezs5v4oA

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How Smart Commercial Construction Businesses Master Cash Flow

Cash flow is the lifeblood of any business. Whether you're managing a commercial construction firm or running a retail operation, understanding how money moves in and out of your business is key to long-term success. Poor cash flow management can leave businesses scrambling to cover expenses, even when profits look good on paper.

A recent episode of the Expandable Series discussed this in detail, but here are some fundamental cash flow principles, using commercial construction as an example, that apply to businesses across all industries.

1. Understand Your Cash Outflows

In commercial construction, significant cash outlays are required upfront for raw materials, permits, and labor. These costs must be covered well before payments from clients arrive. Similarly, in retail, manufacturers need to purchase inventory long before customers make a purchase.

A business must have enough cash on hand to cover these expenses. Without it, operations may stall, delaying projects and impacting profitability. Understanding your cash needs ahead of time ensures smoother financial management.

Example: Imagine a mid-sized construction firm, Apex Builders, takes on a new commercial office project. Before the first payment arrives, they must pay for steel beams, concrete, and skilled labor. Without proper cash reserves or a well-structured payment schedule, Apex Builders could struggle to cover these costs, potentially halting the project and damaging their reputation.

2. Time Your Cash Inflows Strategically

Revenue in commercial construction typically comes from milestone payments throughout a project or upon completion. However, these payments can be delayed due to contract terms, client approvals, or unexpected issues.

For any business, it’s essential to analyze how long it takes to convert expenses into revenue. Are you waiting 30, 60, or even 90 days to get paid? If so, your business must be structured to withstand these gaps. Ensuring that your contract terms align with your cash flow needs can prevent unnecessary financial strain.

Example: Apex Builders structures their contracts to ensure payments are received at key milestones—such as after the foundation is laid, after framing is completed, and upon final inspection. By planning these payment intervals, they reduce financial stress and ensure they always have working capital.

3. Build a Cash Buffer

One of the best strategies for managing cash flow is to build a buffer that accounts for timing discrepancies. In construction, this means having enough reserves to cover payroll and material costs while waiting for payments. The same principle applies to any business with delayed payments.

This buffer should be built into your pricing. Instead of operating on razor-thin margins, factor in potential delays and unexpected costs when setting your rates. This ensures financial stability even during slower payment periods.

Example: Apex Builders includes a 10% contingency in their project bids, ensuring that if a client delays payment or unexpected costs arise, they have the liquidity to keep operations running smoothly.

4. Plan for Payroll and Fixed Expenses

Payroll is a non-negotiable expense in any business. Employees expect timely paychecks, and failure to meet payroll obligations can lead to operational disruptions and even legal consequences.

Since payroll and other fixed expenses (like rent, utilities, and insurance) don’t change based on revenue fluctuations, they must be accounted for in advance. Forecasting these expenses over the next quarter will help ensure you always have the necessary funds available.

Example: Apex Builders schedules payments from previous projects to help cover payroll during slow months, ensuring that employees are always paid on time.

5. Look Ahead to the Next Quarter

Successful businesses don’t just think about today’s cash flow—they plan for the next quarter and beyond. What projects are in the pipeline? When will revenue from those projects be realized? What expenses need to be covered in the meantime?

By forecasting cash flow and preparing for potential shortfalls, businesses can make informed decisions about when to invest, when to hold back, and when to seek additional financing options to bridge any gaps.

Example: Apex Builders maintain a rolling cash flow projection, helping them anticipate slow periods and ensuring they never take on more projects than they can financially support at one time.

The Bottom Line

Cash flow management isn’t just about tracking numbers—it’s about planning ahead, building flexibility into your pricing, and ensuring your business can withstand the natural ebbs and flows of financial cycles. Whether you’re in commercial construction, retail, or any other industry, mastering cash flow is essential for long-term success. Surety Bank is here to help businesses navigate these challenges with financial solutions designed to keep operations running smoothly.

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RESOURCES

A Legacy of Dedication: Cindy’s 31 Years at Surety Bank

In the spring of 1994, Cindy walked into Surety Bank—not to apply for a job, but to apply for a mortgage. She and her family had recently moved from Michigan, and Surety was simply the place she trusted to help them settle into their new home. What she didn’t expect was that the bank would also offer her something even more life-changing—a career that would span more than three decades.

“I didn’t have to look very hard for a job,” Cindy recalls with a laugh. “They saw that I had banking experience and called me up because they needed a teller.”

It was the start of a journey that would see Cindy grow from a front-line teller to a key part of the bank’s payroll and HR team. Over the years, she became a steady presence in the bank’s evolving landscape, witnessing firsthand how technology transformed the industry. When she first started, many processes were still manual—checks were physically run through proof machines, reconciliations were done by hand, and not everyone even had a computer at their desk.

“I remember when we had to share computers,” she says. “That didn’t last too long, but things were a lot different back then.”

Cindy’s career path took her from teller to bookkeeping, then into accounting, and eventually into payroll and HR, where she found her niche. She describes her work as being part of a team that always pulled together to solve challenges—a culture of collaboration and adaptability that made Surety Bank feel like home.

“We always worked together to find solutions,” Cindy reflects. “Even though my role became more specialized over the years, it was always about teamwork.”

A Career That Supported What Mattered Most

For Cindy, working at Surety Bank wasn’t just about the job—it was about the life it allowed her to build. Living just three miles from the bank, she was able to balance her career while staying closely involved in raising her children, supporting her husband, and nurturing her faith.

“I’ve been able to have my life at home and my life here at work,” she says. “It’s been a blessing to have a career that allowed me to be present for the things that mattered most—my family, my husband, and my faith.”

As much as she dedicated herself to her work, Cindy never lost sight of what was most important. She is deeply grateful that her time at Surety allowed her to grow professionally while still prioritizing the people she loved.

A Lasting Legacy

Looking back, Cindy remembers the many friendships, the changes that brought new ideas, and the way she adapted alongside the bank. Perhaps most of all, she values the relationships she built—with colleagues who became like family and customers who left a lasting impression.

Now, as she steps into retirement, Cindy is ready for a new chapter—one that revolves around her grandchildren, travel, and time with family in Michigan. It’s a bittersweet transition, but one that feels right.

“I never dreamed I’d be working someplace for 31 years,” she admits. “But as it turns out, it really went by fast.”

For those just starting their careers in banking, Cindy offers a simple but powerful piece of advice: “Be open to learning all aspects of the job. Take your time, think things through, and just go with the flow.”

After 31 years of steady dedication, Cindy leaves behind a legacy of resilience, kindness, and adaptability—a perfect reflection of the values that make Surety Bank so special. While she may be stepping away from her desk, the impact she’s made at Surety Bank will remain for years to come.

Thank you, Cindy, for 31 incredible years. Your Surety Bank family will miss you!

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Durable Medical Equipment Fraud (DME Fraud)

Durable Medical Equipment (DME) is defined as any medical equipment used in the home to aid in a better quality of living. The term includes wheelchairs, knee braces, hospital beds, nebulizers, walkers, etc. DME is a benefit included in most insurances including Medicare Part B which covers medically necessary DME that is prescribed by a physician for use in a patient’s home.

According to an AARP Bulletin titled “Medicare Under Assault From Fraudsters”, “roughly 10 cents of every dollar budgeted for the giant health insurance program is stolen or misdirected before it helps any enrollee. Malcom Sparrow, a Harvard University professor and leading expert on health care fraud, says the true amount lost to fraud, abuse or improper payments could be 20 percent, or even as high as 30 percent.” See below a graphic that puts the scale of Medicare fraud into perspective.

As you can see, DME fraud has become a huge business for criminals, and they are increasingly using MSBs to provide illegal kickbacks to physicians, launder their illegal proceeds, and take advantage of fraud victims. This behavior should disgust any American taxpayer, if not morally, think about how much of our hard-earned money over the years goes straight into these fraudsters’ pockets.

How it works:

See below an excerpt from a February 4, 2021, Department of Justice Press release titled “Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act Settlement”

[According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.]

As you can see Wolfe established multiple shell companies and submitted over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. Another crucial element of the scheme is she bribed doctors to approve these fraudulent invoices stating they conducted telehealth services for the beneficiaries. The illegal kickbacks to doctors is what check cashing MSBs will encounter. A pattern we have picked up on is checks from companies with “Medical Equipment, DME, Braces, Devices, etc.” made payable to individuals that turn out to be physicians or money mules are likely illegal kickbacks to doctors for signing off on fraudulent DME claims.

Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)]

The AKS is a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the Federal health care programs (e.g., drugs, supplies, or health care services for Medicare or Medicaid patients). Remuneration includes anything of value and can take many forms besides cash, such as free rent, expensive hotel stays and meals, and excessive compensation for medical directorships or consultancies. In some industries, it is acceptable to reward those who refer business to you. However, in the Federal health care programs, paying for referrals is a crime. The statute covers the payers of kickbacks-those who offer or pay remuneration- as well as the recipients of kickbacks-those who solicit or receive remuneration. Each party’s intent is a key element of their liability under the AKS.

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

Other Examples:

  1. https://www.justice.gov/usao-nj/pr/five-people-charged-two-others-admit-guilt-93-million-health-care-fraud-scheme
  2. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
  3. https://www.justice.gov/usao-ma/pr/two-women-plead-guilty-multi-million-dollar-medicare-fraud-scheme
  4. https://www.justice.gov/usao-sdga/pr/durable-medical-equipment-company-owner-sentenced-federal-prison-bribery-conspiracy

Red flags we have identified relating to DME fraud kickbacks are as follows:

• Maker names related to medical equipment writing checks out to individuals. The dollar amount can be random, but we see a lot in the $2,000 – $9,000 range. Less sophisticated actors will structure these payments to remain under the $10,000 CTR threshold.

• When you look up the registered agents of these DME companies on publicly available databases such as Sunbiz.org in Florida, they often control several other companies related to medical equipment that have been recently established. This is indicative of shell companies just like we saw in the above example from the DOJ press release.

• A payee that comes into the check cashing store and regularly cashes checks made payable from DME related companies. You may want to conduct and internet search of these individuals and determine if they are a physician.

What to do if you suspect DME fraudsters are taking advantage of your business to facilitate payments?

If you suspect a potential customer or customer is involved in DME fraud you should investigate to determine if any of the above red flags are involved. As always, you should ask yourself does this activity make sense given the nature of the alleged business? If you determine an existing customer is involved in DME fraud and has conducted transactions aggregating over the SAR dollar volume threshold, file a SAR. As always if you suspect a customer is involved in illegal activity you need to block them from doing business with you. No matter how profitable the relationship is, it’s not worth being fined, losing your license, or ending up in a Department of Justice press release.

Sources:

https://www.aarp.org/money/scams-fraud/info-2018/medicare-scams-fraud-identity-theft.html

https://www.thefloridalawgroup.com/practices/medical-malpractice/health-care-fraud/durable-medical-equipment-fraud/

https://www.justice.gov/opa/pr/florida-businesswoman-pleads-guilty-criminal-health-care-and-tax-fraud-charges-and-agrees-203

https://oig.hhs.gov/compliance/physician-education/01laws.asp

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