[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4868″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753495548667{padding-right: 19px !important;padding-left: 19px !important;}”]Bankers understand business, and they recognize well-managed businesses when they see them. Learn what they are looking for.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]
Chapter 4: Use Good Business Practices
Bankers like to see good business practices. As a business owner, you need a vision of where you are going and a plan on how you are going to get there. Bankers do not like businesses without a vision, direction, and a plan. A business owner who is shooting from the hip and hoping to get lucky does not interest bankers.
All successful businesses have a plan; that is why they are successful. Providing a thorough business plan and accurate forecasting (no pie in the sky here) with realistic numbers is the foundation for your good relationship with your banker. In addition, let your banker know what is unique about your company and how your loan request will further your competitive advantage. What is the value proposition you are offering your customers/clients? I also suggest that you create a realistic budget and compare actual results to the budget on a regular basis.
Bankers like to work with businesses that have documented policies and procedures on how work gets done; creating standard work and generating consistency of operations. This is what your banker really wants to see you aspire to. The larger the organization the more important these business practices are. What got you started in your business will often not get you to the next level; improvement and growth requires more advanced skill sets and more detailed planning. If you do not have these skill sets, you need to make the time to learn them. Get a business mentor, coach, or consultant to help you gain the valuable skills necessary to own, manage, and sustain a successful business. Do not leave your business success to chance.
A number of bankers reported seeing many businesses running by the seat of their pants. Those businesses have no business best practices in place to create standard operating procedures on how work gets done, and as a result they have inconsistencies in operations. Bankers know that a well-run company with good processes and procedures will help the business generate a greater profit margin, thereby reducing their risk. They know what to look for when looking at your company.
Documented processes and procedures may seem unnecessary but nothing could be further from the truth. This is a critical element to your success. Documented processes and procedures of reoccurring tasks will create standard work, which creates consistency of operations. Furthermore, these documented processes and procedures allow just about anyone to come into your business in a new position and get up to speed quickly. They also ensure that if you are not present at your business, it can still run effectively. Even better, your business has the potential to be worth more money if your operations are well documented.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
Make Your Banker Happy
10 Keys to Unlocking a Good Relationship with Your Banker
The various aspects of your business are like links in a chain, and your banker serves as one of those links. Because any chain is only as strong as its weakest link, it’s vital to develop an excellent working relationship with your banker, even to the point where your banker is a trusted advisor. In this book, a leading consultant who helps his clients generate dramatic results you will show you the keys to unlocking a good relationship with your banker.
As a business owner, your relationship with your banker is essential to your success. Follow our series on the website and get your desktop reference copy from Amazon.[/vc_column_text][vc_single_image image=”4854″ img_size=”full” alignment=”center”][vc_column_text]
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