| |
| |
|
Small Business Information |
|
|
|
13 Steps to Protect Yourself from Your Bank
The success of your business is critically dependent on how well you negotiate and manage your financial partners. Banks, investors, credit cards and financial services companies work for you. Therefore, you need to be sure you are working together, understand the plans of each and have the best idea of what and how things will happen when times get tough. It is very simply like dating, and you need to be acutely aware of how words, actions and contracts meld together to form a base for your business structure to build on. 1. Ask for resume of your loan officer and if a small community bank the resume(s) or work history of the principals. Banks have one of the fastest turn over rates and as the industry continues to consolidate, so people are moving fast. It's not always the bad ones that move on, there are actually good folks that get snapped up by the private sector. Know how often they move, and where to and where from. And, ultimately, if you can go with, assuming the relationship is good. 2. Ask to meet 2 to 3 levels up. Loan officer's boss, senior vice president of commercial lending and again, in small community banks, a principal. If your bank contact shows up missing, you have a critical issue that you most likely don't have the time to deal with now. 3. Ask for references of businesses within you range loan, and/or business type. If they won't give you the other companies' name, ask them to have their clients call you. Make sure they are similar in size, industry and financial requirements. Be prepared to ask tough and pointed questions to uncover the real types of people you are dealing with to determine what it will be like beyond the honeymoon stage. 4. Ask for their standings in state and federal regulator groups including FDIC. Be aware that in many cases it is against regulations for bank employees to tell you they are in trouble. Get the history and then follow up on the FDIC website and state banking authorities. These groups may ultimately decide what the bank can and can't do with account. 5. Ask what happens when times get tough. Blow up the bomb, talk about the worst case scenarios and get the reaction of how your bank will handle a takeover, regulatory change, or a late payment. 6. Request the financial intuitions' long term plans. Sell. Merger. Growth. The bank wants to know your long term plans and how they can be part of it. Shouldn't you know what they are planning on doing? If they are going to buy up other banks, or be bought? What happens to your great (or mediocre) bank relationship? Ask often and frequently where the banks see themselves going in the community and within their industry. 7. Draw up a close-out plan if you want to direct the process. If you hold special permits or plan to be involved with your company to the bitter end, figure out how that will be handled. Discuss and get agreements with your financial partners. 8. Invite Board of Directors to your business. Not only are they powerful allies with your bank they are often influential in the community. The more you develop the relationship, they more they can be aware and helpful in moving your business forward, in and outside the bank. 9. Sign any amendments to loan security agreements at the same time you enter into a loan relationship. Neither should be determined to be of more importance if you are going to create an equal and balance long term relationship. Nothing should be an additional or an oversight but one complete and equally negotiated agreement. 10. Request quarterly reports on changes within the bank. Read them and ask questions about what they mean to you and your business relationship. 11. Demand annual updates on areas that blend your business and your business services. Are they adding services to benefit you or cutting areas that will be vital to the growth, profitability and success of your business. 12. Recap all meetings and phone conversations in writing and copy supervisors in your company and at the bank. When times are good, you want every one to know it. And when you need help or relationship begin to gradually, or like a sudden summer storm, explode, you want your communication and your plans to be exacting, detailed and with a concise trail. 13. Continue to meet with other institutions and don't consolidate your business. Margaret E. J. Broderick has an undergraduate in communications and an MBA in Strategic Marketing and Management. Her last company was a two-time Ernst and Young Entrepreneur of the Year Finalist. She is the author of Passion v. Arrogance: A Dana and Goliath Story of Wine Women & Wine, and continues to tour the country to educate audiences. She can be reached at http://www.passionpowerpress.com, or passionbooks@aol.com
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
Top Ten Resolves for Building Your Business in 2005 1. Resolve to build a consistent network system. The Triple A Way to Spark Your Companys Profits Winning small and home based businesses today must continually shake things up to stay in the game. Whether it's adding new marketing twists on existing products and services or anticipating customer wants with compatible new items you can add to your product mix, hatching new ideas and concepts is vital to a profitable company. Mobile Detailing Environmental Concern in the Deep South Macon, GA goes after garage-gas station conversion detail/hand car washes for allowing storm drain pollution. I can remember a time when we were in the Macon GA. Small Business - Big Business...Whats the Diff? Small Business, Big Business - What's the Diff?Well a lot actually!I become frustrated and angry at the government's paying lip service to assisting small business. It appears as though all governments, bureaucrats and many accounting advisers do not know what a real small business is. Too Many Lawyers in Franchising Today Attorneys and Lawyers are ruining the franchise industry. It is too bad too, because franchising represents over 400,000 businesses in our country and accounts for just over one-third of every consumer dollar spent in this country. Are You Running Your Business or Is Your Business Running You? Being a small or home-based business owner can be loads of fun and very rewarding.You may have decided to go into business because of your need for personal freedom or to fully unleash your creative genius. Credit Repair Business Opportunities - Huge Profit Potential! In the world today, many people are further in debt than they realize. When they finally come to understand they need help, they are on the brink of bankruptcy. The Power of Why: Your Psychological Ally To Marketing Success! Here's why 'WHY' is such a profit-making marketing trigger."Stop taking two and three plates of food," my mother said to me angrily. Top 10 Rules for Small Business Success 1. TargetYou are not all things to all people. The Role of the Business Model and Strategy for Business People will always stress that having a well researched business plan is key before you start your business. Although creating a business plan is often an important step in the evolution of a business, particularly if you need financing or you are not experienced at running a business, it is not necessarily the essential first step. The Game Plan - The Difference Between Small Business Success And Failure It is an American dream to own a business. But sadly, according to the U. Business Relationships Defined What makes a business relationship?What really makes a business relationship? This may be very hard to define as it goes beyond just meeting the person and chatting about something you have in common. A relationship is developed over a period of time and usually does not happen instantly. 7 Advantages to Incorporating There's no question that hard work and a little luck is what it takes to BE successful. But a little knowledge, especially when it comes to setting up your business, will help you STAY successful. What Your Small Business Can Learn From The Doctor Most doctors never distinguish the difference between customers and patients. That's why they have waiting rooms instead of reception areas. Mobile Car Wash Market Opportunities in California The current lack of industry leaders represents an exceptional opportunity for a large and organized mobile car wash company to achieve regional domination and eventually dominate the Southern California carwash market. The best place to start a regional assault on this market would be to concentrate North and West of Los Angeles; Chatsworth and Simi Valley to Malibu and Tarzana to Santa Barbara. Small Businesses with BIG NAMES: Protect Your Trademarks and Reap the Rewards You're a small business owner with a hot new product or service and you're deciding what to name it. Perhaps you've even hired a graphic designer to create a flashy logo to go with it. Fire the CEO If you are the boss and you think your job is to run the business, you are dead wrong. Your job, the most important job in any business, is to market the business. Selling Your Business, Entrepreneurs Role $elling $elling $ellingWhat makes a great sales person? Well, the natural ability to sell defnitely could not hurt. Sales people are a passionate, obviously people oriented, motivated and energetic bunch. How to Start Home Based Travel Businesses Home based travel businesses are no longer the wave of the future. Home travel businesses are the hot trend right now. 20 Great Ways to Market Your Business Locally Whether your target audience is in your neighborhood or across the world, you can use your local resources to get the word out about your business. Your local community is easily accessible and provides dozens of opportunities for building a buzz about your product or service.
|
| home | site map |
| © 2006 |
