Focus on Finance
5 Keys to a Successful Banking Relationship
It’s important to put the same passion you put into building a small business into building a banking relationship. Why? Because achieving a happy financial partnership for both your business and personal needs is like any relationship—the right choice makes all the difference. It takes time, but choosing the best bank is critical to your success. Here are five things you should consider when choosing a bank:
• Honestly assess your needs. Consider both your personal and company’s current and future needs. Where do you want your company positioned five years from now? What are your personal long-term goals? The right banker will help you assess your growth potential and ask pertinent questions to support business and personal financial growth.
• Technology for the long-term. Thoroughly investigate potential bank partners’ technological capabilities. Many banks talk about innovation, but don’t ask the right questions to see if the technology they’re recommending really helps you manage your business better. If you’re a small business, maybe online banking is all you need to track transactions and move money between your business and personal accounts. But you need to shop around, because not all online banking is created equal. If you plan to expand, a bank that’s technologically savvy may be a better fit. Also, although you may only need a business checking account, a line of credit, and the ability to accept credit cards at this point, you may eventually develop a need for electronic cash management services or other business services.
• Know your expectations and share them. Once you’ve identified several banks that meet your criteria for current and long-term needs, arrange for each banker to meet you and your team at your place of business. Honesty about your situation and goals facilitates the exchange between your team and each prospective banker. If information is exchanged freely, everyone will understand each organization’s goals, expectations, and capabilities.
• Determine your potential banker’s passion for their business…and yours. A banker who is passionate about your business makes a superior partner for obvious reasons. They care about your success as much as their own—and are willing to go the extra mile to find banking resources and services that will best fit your needs, personally and professionally, now and in the future.
• As a business owner, look for experience. Banks may offer specialty areas, such as retail or medical banking. Small business is considered a specialty area as well; it pays to work with a bank that offers products and services specifically designed to meet the needs of a small businessperson.
In addition, the banker who’s right for you may already be familiar with your industry. The banker ideally would be able to draw upon and help you apply the strategic concepts and financial solutions that have helped similar businesses succeed. Smaller business owners and new entrepreneurs, in particular, could benefit from a banker who understands the challenges of their industry. And don’t forget to ask for references from businesses similar in size and scope as your own.
Enjoy the Payoff! Let’s face it: cash is a commodity, and it looks the same regardless of which bank it comes from. But the right bank provides more than money. It provides a true financial partner who cares about your company and your personal success. A good banking relationship supplies support, service, and structure—everything you need to succeed. tpw
• Honestly assess your needs. Consider both your personal and company’s current and future needs. Where do you want your company positioned five years from now? What are your personal long-term goals? The right banker will help you assess your growth potential and ask pertinent questions to support business and personal financial growth.
• Technology for the long-term. Thoroughly investigate potential bank partners’ technological capabilities. Many banks talk about innovation, but don’t ask the right questions to see if the technology they’re recommending really helps you manage your business better. If you’re a small business, maybe online banking is all you need to track transactions and move money between your business and personal accounts. But you need to shop around, because not all online banking is created equal. If you plan to expand, a bank that’s technologically savvy may be a better fit. Also, although you may only need a business checking account, a line of credit, and the ability to accept credit cards at this point, you may eventually develop a need for electronic cash management services or other business services.
• Know your expectations and share them. Once you’ve identified several banks that meet your criteria for current and long-term needs, arrange for each banker to meet you and your team at your place of business. Honesty about your situation and goals facilitates the exchange between your team and each prospective banker. If information is exchanged freely, everyone will understand each organization’s goals, expectations, and capabilities.
• Determine your potential banker’s passion for their business…and yours. A banker who is passionate about your business makes a superior partner for obvious reasons. They care about your success as much as their own—and are willing to go the extra mile to find banking resources and services that will best fit your needs, personally and professionally, now and in the future.
• As a business owner, look for experience. Banks may offer specialty areas, such as retail or medical banking. Small business is considered a specialty area as well; it pays to work with a bank that offers products and services specifically designed to meet the needs of a small businessperson.
In addition, the banker who’s right for you may already be familiar with your industry. The banker ideally would be able to draw upon and help you apply the strategic concepts and financial solutions that have helped similar businesses succeed. Smaller business owners and new entrepreneurs, in particular, could benefit from a banker who understands the challenges of their industry. And don’t forget to ask for references from businesses similar in size and scope as your own.
Enjoy the Payoff! Let’s face it: cash is a commodity, and it looks the same regardless of which bank it comes from. But the right bank provides more than money. It provides a true financial partner who cares about your company and your personal success. A good banking relationship supplies support, service, and structure—everything you need to succeed. tpw