[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4887″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753494900882{padding-right: 19px !important;padding-left: 19px !important;}”]Things happen, that is life. As a business owner, you need to plan for the unexpected as well as for the potential succession of your business, whether that means making a transition in ownership or selling the business. Planning ahead lays the foundation for success.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]

Chapter 10: Develop Succession Plans

Since so many baby boomers are now in a position to sell their businesses or transition them, I was curious about what the bankers would report regarding how many of their customers had succession plans in place. Most bankers reported that not enough had succession plans in place; but as you might expect, they also reported that the best-run companies were addressing this issue.

A succession plan does not mean that you are planning on selling your business right away. It does mean that you are planning for the future of your business should something happen to you prematurely. If you are thinking of selling or exiting your business, you should start preparing at least three years in advance. The sales or transition process takes time more time than most business owners realize.

One of the major upsides to thinking and planning for succession is that it forces you to take a hard look at your business. What is going well and what is not going well? What needs improvement? Is your business organized for success? Would someone be interested in buying your business in its current state? Is the business generating sufficient revenue and profits? Are you building wealth in the business or avoiding taxes?

When it comes to succession planning, I suggest that you focus on the management side first (as opposed to the ownership side). Without adequate management in place, ownership will not be able to have a smooth transition of the business internally or externally.

Without a succession plan in place your business and your personal wealth is at risk. If something tragic should happen to ownership the business is in jeopardy of failing. Good succession planning is a bit like insurance. It has great benefit later, but it also has benefits now in the planning process itself. It also pays off in your relationship with your banker, boosting their confidence in your business.[/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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--- END POST ---

[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4884″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753495045225{padding-right: 19px !important;padding-left: 19px !important;}”]A well-managed business operates proactively rather than reactively. You need to operate with a plan because without it, you are a potential risk for the bank. Bankers want to minimize their risk. Learn how.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]

Chapter 9: Be Proactive

It concerns bankers when they see business owners being reactive rather than proactive with running the business. The business owner who does not have a plan or is not following the plan is a potential risk for the bank. Being reactive is when you react to everything that comes your way. Vision and a detailed plans are the guardrails that prevent you from getting lost in being reactive. That is why bankers want to see this kind of planning. They want to know that your actions are being guided by something more lasting than the day-to-day issues and problems that crop up.

Being able to explain to your banker how you will execute on your plan is important. This gives them greater confidence that you will achieve your goals and continue to grow as a company because all great companies have plans. Having a well-run business with a clear strategy and vision along with goals and an action plan that will help you achieve the results you are looking is being proactive. Too many times business owners wait for a crisis to provoke change, but this is being reactive and it does not lead to great results. Do not wait for a crisis; instead, create a vision for the future, set goals, and make a plan of action. Demonstrating this approach in your business gives your banker confidence that you are proactive and will be able to achieve the results you are targeting.

Of course, business does not always go as we plan, but if you are proactive, you are solution focused. Proactive people take responsibility for what is happening and then come up with a plan to correct the situation. Furthermore, your vision and goals help to mitigate the negative impact of unfortunate business developments; they also keep you on track during difficult times. The first habit in The Seven Habits of Highly Effective People by Stephen Covey is ìBe Proactive.î I recommend that you read it for yourself and apply its lessons to your business and to your relationship with your banker.[/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]

Get Your Copy

[/vc_column_text][/vc_column][/vc_row]

--- END POST ---

[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4881″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753495154330{padding-right: 19px !important;padding-left: 19px !important;}”]Just like you want to have a relationship with your customers, your banker wants to have a relationship with you. In this chapter I discuss the role of appreciation and gratitude in building a solid working relationship with your banker.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]

Chapter 8: Express Appreciation

Bankers, more so than ever before, especially since the great downturn, are interested in building relationships with their clients. They are not much different than you the business owner who understands that your business is about people and the relationship you have with your customers and clients.

Your banker is an important partner in your business and should be treated as such. One of the best strategies you can have for your business is to have a great working relationship with your banker, and that takes effort on your part. It may be necessary to interview a number of banks and bankers in order to find the right fit for you, your business, and your industry. A banker that understands you and your industry, one who understands and is willing to support your organization, can be a genuine asset. It is your responsibility to treat this relationship with your banker as one that is not solely about the money right now. By investing in a long-term relationship with your banker, you are investing in the long-term health of your business.

The more that your banker understands you and your business the lower the risk is for him or her. Having an excellent relationship with your banker also means you are not switching banks for a quarter or half basis point. You are putting value on the relationship and not just the finance charges and interest rates. Think of your ideal customer or client. Do you want them switching vendors over a few cents or dollars after you have worked hard to build a great relationship? I think not. Bankers are no different.

I do not want to discredit the big banks, but after working with small to mid-market companies for many years, I prefer the small to mid-market banks. I have found that with the big banks it is difficult to get to know your banker because they seem to churn through people. You can establish a relationship with your local branch and return a few months later and find that the individual you were working with has moved on; now you have start over educating the new banker. All of the bankers I interviewed have been with their small to mid-market branch for many years, creating lasting relationships with their customers. They are usually involved in the local community in some way and often attend local networking events. This is the kind of banker you are looking for.[/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]

Get Your Copy

[/vc_column_text][/vc_column][/vc_row]

--- END POST ---

[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4877″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753495232437{padding-right: 19px !important;padding-left: 19px !important;}”]The reason you are in business is to meet customer needs. That means knowing what those needs are and organizing your business to meet them efficiently and effectively. Bankers like business owners who are focused on their customers.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]

Chapter 7: Focus on the Customer

Bankers know that for your business to succeed, it must be customer focused. The customer or client is the whole reason you are in business. It is the foundation of strategy to determine how to meet the customers’ need or solve their problem, then organize your company in such a way to do so in the most effective and efficient manner. How are you going to meet your customers’ needs? Is your business organized to meet those needs effectively and efficiently? Is your management team focused on meeting customer needs? What about your employees?

Are you able to explain to your banker how you are meeting your customers’ need? What pain or problem are you solving for your customer? Strategy is an intentional focus and alignment of resources that deliver maximum results for the customer. Before your company can organize to meet a customer’s need or eliminate a pain or problem, you need to fully understand what that pain or problem is.

Your bankers are well versed in business. They will be able to recognize what you are attempting to accomplish in this area. Explaining all of this to your banker helps them to understand how you are focused on the customer. Your job as a business owner is to understand the customer in such a way that you can exceed their expectations in solving their problem or achieving their goals. Be able to explain to your banker who your customers are, what product or service you are providing to meet or exceed their needs, and where they are located geographically. How is your company organized to meet those needs and provide superior performance? Presenting this information will help inspire your banker’s confidence.[/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]

Get Your Copy

[/vc_column_text][/vc_column][/vc_row]

--- END POST ---

[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4872″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753495299494{padding-right: 19px !important;padding-left: 19px !important;}”]Your banker is a professional with extensive education and experience, and as a business owner, you need to present yourself as a professional as well. Learn what it takes to demonstrate professionalism to your banker.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]

Chapter 6: Demonstrate Professionalism

Your banker is a professional, and you always want to present yourself as no less professional than your banker. This does not mean that you need to wear a suit and tie when meeting, but it does mean that you need to be prepared. Documents need to be accurate, neat, and organized without spelling errors and coffee stains. It may require you to step up your game a little. Meeting your banker is not like meeting your friends at the local pub. Your banker is a professional and you should dress and act professionally. Your demeanor is also important, you want to come across as confident but not cocky. Remember that you are representing your personal business brand. How do you want to be perceived? In all relationships, perception matters. Run everything you might present to your banker (documents, email, your website, and yourself) through the lens of your banker’s eye before you send something to them or meet.

Show competence by being prepared with accurate documents as well as knowledge about your industry and your business. Be polite and treat your banker with the same level of respect you would treat your very best customer, and always, always be on time. Being reliable shows respect. When communicating through written correspondence with your banker, make sure that you are brief and to the point. This also applies to phone conversations. Most important is to be accountable. If you make a mistake, admit that you did, take ownership, and explain what happened and how you plan to correct it. This is the level of professionalism that will help to establish a trusting relationship with your banker.[/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]

Get Your Copy

[/vc_column_text][/vc_column][/vc_row]

--- END POST ---

[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4871″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753495420833{padding-right: 19px !important;padding-left: 19px !important;}”]You cannot go it alone. You may be skilled in your particular craft, but there are many other aspects of a well-run business. If you do not have these skills, you need to find those who do. Who should you be consulting in order to ensure your success?[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]

Chapter 5: Engage Advisors

You cannot do it alone. While you are starting out; you likely cannot afford to hire a management team, but there is no reason you cannot assemble a team of professionals to advise you when you need them. Once you are established and are generating revenue, you can consider putting a management team in place.

Take a look at the outline for any business plan. It will have a section for the executive team that will help you run your business. This is where you list the experience of your team that will help you to make the business a success.

If you are just starting out, create a list of professionals that you can turn to for guidance and advice. Your list might look like this:

1. Banker
2. Attorney
3. Bookkeeper and/or accountant
4. Insurance agent
5. Business mentor or consultant

Take an honest assessment of the situation. Are you and your management team on the same page? Are you all headed in the same direction? If you have a clear vision and a plan on how you will bridge the gap between your current state and your desired future and your management team can articulate this, it will give your banker confidence. When the management team has training and vision, your banker’s confidence will be greater because they know that kind of management team delivers results. Furthermore, a competent management team with breadth, depth, strength, and longevity prevents the operation from being fully dependent on the owner. All of these individuals you are depending on to help you obtain and sustain success should become your trusted advisors. Be proactive and intentional to get the advice and guidance you need.[/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]

Get Your Copy

[/vc_column_text][/vc_column][/vc_row]

--- END POST ---

[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]

Get Your Copy

[/vc_column_text][/vc_column][/vc_row]

--- END POST ---

[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4865″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753495644258{padding-right: 19px !important;padding-left: 19px !important;}”]Bankers like regular communication in good times and bad. In my interviews with bankers, proactive communication landed high on their list of what their best customers do well. Learn how to communicate with your banker.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]

Chapter 3: Communicate Proactively

According to the bankers I spoke with, regular communication is paramount, and their best customers do this consistently. In fact, proactive communication is high on the list of what the bankers’ best customers do well. It is also exactly what their poorly performing customers do not do well. Those customers often do not communicate at all unless, it is requested by the bank.

Regular communication is critical to a successful relationship with your banker. You want to be able to have honest conversations with your banker about what is going well and what is not going well; you should also share your plan to correct what is not going well. Set up regular meetings with your banker. Invite them to lunch or coffee, or offer to meet at their office to provide an update. I would suggest you do this at least once a quarter. It is also a good idea to invite your banker out to your offices or production facility to gain a deeper understanding of what you do.

You may find it easier to establish regular communication with your banker when times are good, but it is even more important to do so when times are not so good. Too often business owners hunker down and are afraid to deliver bad news to their banker. However, this is exactly the time you need to step up your game and deliver the bad news. Always go to the meeting with your banker prepared with a plan of action on how you will correct the situation. Bankers understand business and that all business has its ups and downs. According to one banker I spoke with, Bankers take bad news well, and they take no news badly. Communicating during good and bad times keeps the doors open for your banker to be a trusted advisor and help you when times are tough. I would encourage you to develop a pattern of regular proactive communication with your banker. It will pay huge dividends.

I recommend asking your banker what they need from you and then making a point of executing on their wishes. Remember, they are there to help you, not to make your life miserable but they have requirements they must adhere to. Listen to their request; arguing about it will undermine your partnership. They will do what they say they will do and so should you. Your banker’s reputation with their bank is important, and it partially depends on your success. Provide your banker with all the information they are interested in, in a timely manner.

One of the best ways to keep your banker happy is to stay in compliance with the loan covenants that you agreeded to when you borrowed money. These covenants protect the bank and ensure that they get their money back. As long as you stay in compliance, you should be on the path to make your banker happy.

Respect and good communication skills are important building blocks in your relationship; think of these things as another way to ensure the success of your business. Make sure that your communication is clear and concise. Your banker is busy and does not have time to read between the lines. Also, consider their workday. Do not call at 4 p.m. for a major transaction that needs to be done right away. The odds are that you knew about this need for a while, so why not be proactive and inform your banker so they can plan ahead for this request? Remember that your banker wants to provide excellent customer service to you, but you are not their only client. Proactive communication helps them to do the best job for you. If there is a wire transfer cutoff at 1:00 p.m., do not call at 12:30 to request the transfer. Inform your banker the day before you have this need.

This level of communication builds relationships. When your banker sees that you are invested in telling the truth and respect their time, their trust will grow. Put yourself in your banker’s shoes and communicate the way you would want to be communicated with. This will produce great results for you.[/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]

Get Your Copy

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