CHOOSE RIGHT WHEN THE ECONOMY IS TIGHT

Business professionals know all too well that pulling together the most competent, caring and professional staff is vitally important to their growth and success. Equally important, but perhaps not as obvious is creating a team of knowledgeable, accessible and dedicated business partners. Not the type of partners that actually work at your company, but rather business partners such as attorneys, accountants, insurance agents and bankers. These relationships are the key to creating the business foundation from which your company is operated. Most business professionals have attorneys and accountants that were chosen through referrals and based on proven expertise. Unfortunately, all too often bank partnerships are chosen differently - based on geographic proximity or rates rather than effectiveness, shared business philosophy, and real value-driven convenience.
Developing and maintaining a relationship with the right banker has never been more important. An entrepreneur’s relationship with his or her banker is best when built on mutual trust and respect and based on value not price. The old adage “you get what you pay for” is applicable to most things in life and a business banking relationship is no exception. It may cost a bit more for a banker who is truly a valuable business advisor rather than simply an order taker, but it’s worth it!!!
Specific value that a banker can add to the business relationship, especially today, is to advise clients on how to choose the most appropriate financial services i.e. checking and savings accounts, and how to expedite the borrowing process for equipment loans, working capital lines of credit and mortgages to acquire offices, manufacturing or storage space or to start, purchase or expand your business. The right banker can allay fears and eliminate confusion that is compounded in today’s economy of tight credit.
Credit is absolutely available today (to qualified borrowers); and, the role of the professional business banker helps business owners demonstrate qualifications by guiding them through the credit process as outlined below:
· Be prepared to discuss the amount of the loan and its specific purpose (to purchase assets, consolidate debt, fund operating expenses, buyout a partner, etc)
· Identify desired loan repayment term and the collateral being offered to secure the loan
· Provide 2 -3 years of business and personal federal tax returns as well as business and personal balance sheet (personal financial statement) to facilitate the assessment of the financial condition of your business, past, present and projected future
Because lending money is all about managing risk, a good bank partner will evaluate risk completely and advise accordingly in the best interest of the bank as well as the prospective borrower. Beyond the quantitative information above, an experienced banking professional will also evaluate a loan request against the following qualitative criteria commonly known as “the 5 C’s of credit”:
1. Character – Business and personal character, integrity, reputation and credit history
2. Capacity –Sufficient business and personal cash flow available to make the payments and repay the loan
3. Capital –Sufficient business and personal cash for a down payment and for a cushion in case business gets slow
4. Collateral –Assets to secure the debt such as real estate, equipment, A/R or inventory
5. Conditions – Condition of the borrower, the borrower’s industry and the general economy
Make sure to choose your banking partner wisely. The right choice will ensure readiness that will improve chances for loan approvals and also provide guidance on smart structuring of deposit accounts and delivery systems to maximize business growth and success – even when times are tough.

Time to Reflect and Refresh: Transitioning into 2010

What a year – one that most of us would not want to repeat. While 2009 certainly offered challenges, there were most assuredly events and people who made a positive impact for your business or for you personally. Reflecting on the positive generates thankfulness. Expressing thankfulness refreshes and creates new energy for the receiver and the giver. Your company may not be in the “smile business”, but why not start out 2010 by doing things that generate both emotional and physical smiles for your employees and customers. Showing your appreciation in kind little ways will help fuel grateful attitudes in the New Year.
Staff and customers always respond favorably to random acts of attention that are surprisingly received from the people that touch them throughout normal life (medical professionals, bankers, hair stylists, realtors, postal workers etc.). Admit it. Receiving something unexpected regardless of its value brightens the day. The traditional holiday greeting card only gets buried in a mountain of other mail, now that the new year is here consider doing something unique as tangible evidence of your appreciation. Reflect on what really matters, translate it, and share it.
A hand-written note to the families of your staff can express the value of their loved one’s hard work, dedication, and tender care of your customers and will have a long-lasting impact. The proud employee will truly feel appreciated and eager to face the New Year with a refreshed attitude and keener sense of commitment to you and the your customers – regardless of the economy.
Thanking your customers can also be done with a new twist that will touch their hearts - especially needed in our current environment. Consider an honorary gift (given in their name) as a way to show appreciation. For instance, brighten the smiles of U.S. soldiers serving overseas by shipping personal care packages along with small gifts and thank you notes on behalf of your customers. A special “Creating Smiles in the New Year” card can be sent to clients to communicate the initiative that was done as a symbol of your appreciation for them. Including your customers in this reflective and random act of kindness will help them feel like they’ve been part of something that matters and may refresh them enough to pass it forward and share kindness with others.
Mailboxes are filled everyday with bills and unwanted solicitations. What a pleasure it is to be the giver of a surprise “thank you”, regardless how small, to an unsuspecting staff member, customer, or soldier who may be a complete stranger. It brings as much joy to the giver as the receiver.
Best wishes for a New Year filled with Miles of smiles!