Whether you’re building your business to sell one day or thinking about buying a business for the first time, you need to make sure you have a quality banking relationship established.
Some people think of a bank as simply someplace they keep their money or where they go when they need something. In reality, banks offer much more. Unfortunately too many people often fail to take advantage of those benefits because they haven’t established a quality banking relationship.
The Benefits of a Quality Banking Relationship
A Shared Goal
Contrary to popular belief, bankers are actually interested in your financial success. The better you do, the better they do. They want you to succeed and will do what they can to help you.
That might be sending you referrals or connecting you with strategic partners. It might be simply giving you helpful advice on a business decision.
Knowing Your Numbers
Apart from seeing basic financial statements like a P&L and Balance Sheet, bankers are used to seeing sophisticated financial documents and using them to make strategic adjustments for profitability.
Beyond simply examining the present, they can help you forecast the future. Remember, this is something they do every day across all types of businesses. When was the last time you sat down with your banker to discuss your financial statements?
If you have a good relationship with your bank, and there are new products or services the bank will be offering, you might be the first to know. Keep in mind that your banker is going to be your advocate if and when you need something important. The most important measure they keep in mind in their business is trust… and that takes time to build.
Do you want some odd charge adjusted? Want better rates on a line of credit or on your savings account? Want a higher credit line? All are possibilities when you have an active and regular banking relationship. Why? Because you’re more than just an account number and a balance.
You’ll also feel more comfortable asking for help when you have an open communication line instead of just calling out of the blue or only when there’s “trouble.”
Where to start?
Start by scheduling a meeting with your banker and look to make it something regular. Ask what you can do to help them and have a list of things you need help with They may not be able to help you with every single issue, but they may know someone who can.
If you don’t have a bank or banker you feel you can build a relationship with, give us a call. We can give you a few trusted ones we work with and you can pick one that makes the most sense for you and your business.