|
|
| www.1001TopWords.com |
|
|
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
|
|
|
|
RELATED ARTICLES
Forming a Corporation ? Investors You've come up with the best idea since sliced bread, figured out a business name and formed a corporation. There is, however, one small problem. You need money. Welcome to the world of investing. Competition Relations in Auto Detailing There is significant competition in auto detailing and car washing. Even more between types of cleaning businesses, as each company attempts to expand into other services which are the mainstay of similar business models. Many times the line blurs between a car wash, oil change business, truck repair, auto accessories business, electronics installers and auto detailing. What can you do? Well first let's talk about what you should not do. You should not start a war against all your competition. Instead you should maintain good relations with them, even if you find them to be somewhat unethical by nature. Auto Detailers and Competitive Aspects of Automobile Detailing There are both fixed and mobile detailers. Consumers often will use either or both during the life of their car. Mobile Detailing is nice because they come to you. Fixed site auto detailers often work in a controlled environment and can produce higher quality work. Due to the competitive aspects fixed site detailers generally will offer pick up and drop of services. Due to costs to run an automotive detailing shop the prices are often a little higher and this gives the advantage to the mobile auto-detailing practitioner. Do You Microbifer in Your Cleaning Business? Microfiber cleaning towels have been around for about ten years now. When I first heard about them they were being sold through distributors in an MLM business. Since my business was professional house cleaning, I couldn't see how they could benefit me due to the high cost. How to Successfully Avoid Becoming One of The 80% of Small Businesses That Will FAIL It's a commonly quoted statistic: 80% of all small businesses will fail within the first five years of running. In fact, in Internet marketing, this figure can be as high as 95%. Yes, it's a commonly quoted statistic but for some reason, people are not very good at saying exactly why this happens. And it happens to what seems like nearly all newborn businesses. Starting a Virtual Assistant Business If you're organized, smart, capable and willing to work with deadlines, you could start a virtual assistance business and cash in on your skills without having to commit to an employer (you'd be your own boss instead) or the "cube life". A VA (virtual assistant) is basically like an administrative assistant (or whatever duties need to be filled, such as writing, link building etc) that serves in a virtual capacity. What this means is that they are independent contractors, and not employees of individual companies. Small Business Vendors; Getting the Best Service If you are a small business you know that you must rely on your vendors to make sure you have everything your customers need. Lack of vendor support can lead to upset customers or even loss of your business. Be pleasant and courteous to all vendors and potential vendors. Try and treat vendors like your favorite customers treat you. Do you remember recently when you went out of your way for a customer, the whole time knowing you weren't going to make any extra money by doing so; yet you did, simply because you liked that particular customer. That customer; whether you know it or not, probably told five friends of your gallant effort; something you may not even have thought about. This type of extra concern and effort is hard to come by these days from local business people. You will, from time to time, need this type of gallant service from your vendors, so start now by being extremely pleasant to those you do business with. Remember, also to refer your customers to your vendors whenever the opportunity arises. Small Business Grants - Tips from the Pros Every business starts with an idea or a dream. To implement this idea or to turn your dream in to reality you require finance. A grant supports the business ideas and turns the dreams of an entrepreneur in to reality. Starting a Small Business? ?Tips from a Veteran Congratulations, you are starting a small business! You are taking charge and going for your piece of the American dream! Your excitement is high, and the adrenaline is pumping! Everyone dreams of freedom and owning a successful business, but not everyone can successfully create that reality. Now that you've made the commitment to give it a shot, let me give you the single most important tip that I can give you to insure your success. Businesses that succeed whether large or small all begin with a business idea. Your challenge is to determine if your idea will be a winner or a loser. New Habits, Rebounding Economy Help To Sell Giftware and Collectibles Just a few years ago, when one thought of a home-based sales business, Tupperware, Avon and a host of multi-level marketing schemes might have come to mind. Today, however, changing market conditions and evolving consumer habits have converged to make home-based selling businesses a realistic opportunity with real profit potential. But Weve Always Done It This Way Sacred cows take a long time to die. We get comfortable in the way we do things and lose sight of how they could be improved. Here's an interesting story. Franchising Pros and Cons Last week's question from Anthony R. on how to choose the franchise that would best fulfill his life-long dream of owning his own business sparked a number of emails from other readers wanting to offer their two cents on the subject. Specialty Advertising in C-Stores It appears the mini-blimp indoor theme and concept is making significant headway. We have seen them in the halls of Congress sniffing for anthrax. What else can we use them for? C-Stores can use Mini Blimps Advertising and Surveillance to prevent Shoplifting. These can be paid for by beer vendors, soda vendors as advertising signs, which float around the store like a pool sweeper around the family pool. It does not have to be a blimp shape, it could very well be any shape such as a giant banana or a football? Business Checks are an Added Cost to Your Small Business - Try Making Them Yourself! Starting and managing a small business is no fun chore, especially when it comes to the accounting. There are a few common sense ways that you can help that bottom line. 6 of 1, Half Dozen of the Other Motivational author and speaker Jim Rohn says that for a business to succeed it takes about ahalf dozen things. Of all the millions of things you do, it's really that half dozen that count. 7 Cash Flow Secrets Your Accountant Never Told You Looking for ways to boost your cash flow? As a small business consultant, I make these recommendations to my cash strapped small business clients: Boat Detailing Tips and Procedures Auto detailers are often asked to clean boats and detail boat trailers. There is an easy and efficient way to do this with little effort. Washing and waxing boat trailers is an easy sale. Be sure to offer the boat owner a trailer wax. Let the owner know that a heavily waxed trailer is more rust resistant even when used in salt water. They can wax now or repaint later. To remove rust, brush on two coats of Ospho Acid, available in paint stores and marine supply shops. It will change the chemistry of rusting steel from an active to a passive state and stop rust cold. Entrepreneur to Employer You make the decision to go into business and for some time work from home or in leased premises and your business starts to grow. Small Business Success Tip: Learn Something New Everyday Your grandfather probably told you to "learn something new everyday". Your grandfather was giving you advice that works for your small business as well as your own education. Procrastinate Your Way To A Successful Small Business What will your business look like a year from today?
|
| © Athifea Distribution LLC - 2013 |
