Small
Business Tools and Resources
Your Most Important Financial Ally
by Terri Lonier, President, Working Solo, Inc. (www.workingsolo.com)
If you've played a game with a young child lately, you know
there's a remarkable unwritten rule called a "do-over." When
the competition gets too tough, or the game looks like it's
really going down the tubes, children often assess the
situation and say, "OK, let's allow a do-over." It's a way to
even the score and help out one of the players who is in over
his or her head.
A "do-over" is a dream of nearly every soloist. If we could
rewind the clock and start our companies over again, what
would we do differently? What one thing could make the most
difference in our early years in business?
I know in a heartbeat what my wish would be, the one thing
that could have made a remarkable difference in the first
years of my business. My "do-over": I would've made friends
with my banker, even though I didn't need any money until
several years into my business development.
With a banker as an ally, I could have been savvier in my
early business decisions. I would have been more aware of the
financial ramifications of the choices I made. I also would
have given more respect to the two most powerful words in
every small business: cash flow.
So allow me, from my vantage point of about two decades away
from those initial business days, to share with you the
guidance I wish I had sought.
1) Go meet your banker now, even if you don't need to borrow a
dime.
In any situation, it helps to come from a position of
strength. Trust me, when your business is struggling and you
need money badly, you won't feel very strong - and chances
are, you won't come across in the best light, either. Even if
your business is just starting out, make an appointment with
the bank to introduce yourself to one of their
representatives. Let them link your smiling face with a name
on an account. This personal connection will be powerful down
the road.
2) Stay in regular touch with your banker.
Most bankers really enjoy knowing how your business is
developing. Some receive a vicarious thrill - you may be doing
something they've longed to do, but never had the courage.
They may become one of your community cheerleaders, sending
new customers your way. Keep your banker informed of your
progress. Put them on your mailing list, share your business
plan, and stop in from time to time just for a quick chat. Let
them know you consider them part of your extended business
team.
3) Make sure you have more than one contact at the bank.
Over the years I've been in business, my bank has changed
names five times - and I know that's not unusual these days.
Fortunately, much of the staff remained during the
transitions. With such fluidity in management and frequent
turnover, however, it pays to create personal ties with more
than one banking professional. You don't want to have paved
the road over many months or years only to discover that when
it comes time to apply for a loan or credit line that your key
contact has moved on.
These steps will only take a few minutes of your time, but
they can be priceless when you look in your checkbook and
decide to seek outside funding to get your company through
some rough spots or to fund that big dream project. Over the
years I've learned this lesson well: make your banker your
friend. He or she is your most important financial ally.
Copyright 2004 Working Solo, Inc. All rights reserved.
Past Terri
Lonier Articles
Bio Note:
Terri Lonier is a business coach who guides business owners on
how to generate greater profits -- and have more fun – while
running your company. One of the nation’s most respected
authorities on self-employment and entrepreneurship, Terri is
author of five books, including the classic startup guide,
“Working Solo.” Her work has been featured in the New York
Times, the Wall Street Journal, Fortune, Fast Company, Inc.,
and on CNBC, CNN/fn, and radio stations around the world. You
can learn more about Terri and her Pathfinder Coaching Program
at her Working Solo Web site, http://www.workingsolo.com
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