How to Build a Banking Relationship as a Business Owner begins with understanding the basic principles of banking. Understand the difference between savings accounts, credit cards, and personal loans.
Have a clear understanding of your obligations under each type of financial arrangement and you will be closer to understanding how to build a banking relationship.
You should have several accounts that are FDIC insured and have a minimum balance required. Typically this minimum balance is five to seven percent of the overall business assets. This number will vary depending on your business situation. However you should have all three or four types of accounts. If you have more than that many accounts you will likely need to talk with a consultant about how to structure your company so that you can best utilize the money you have.
If you are not providing great customer service you will lose your customer base. Customer service is essential to maintaining a positive working relationship and maintaining good client relations. You should never take for granted that your customers will remember the last time they did business with you. Always make sure you provide great customer service and you will be able to maintain a long term relationship with your customers.
As you know customer service is extremely important. The paperwork is equally important. Make sure you do not get too much or too little of anything in return for your hard work. Make sure you have enough insurance (if needed), the right amount of banking products (from a high interest savings account to an Internet account), and that you understand how to utilize your accounts. The fewer things you think about the better off you will be.
How to Write a Check. Every financial transaction you make must go through a particular process. Even if it is just a simple bank draft, you must know how to write a check. It is very important that you always have everything in order and that it goes through the correct bank. If you leave anything out it could cause your checks to bounce or it could delay the processing of your checks.
You must set goals before you start. What are your goals for the business? Where do you want it to be in a year or so? Having a written goal makes it easier to judge where you are at each step of the way.
Are your bank accounts full or near? If you are not generating enough cash flow, you might want to check out your current account statements. You will want to know what you are bringing in and how much of a profit you are making. Are there any areas where you can improve cash flow? Some banks charge extra for ATM use or for checks that go outside their system. If this is a problem then it might be time to talk to your financial advisor about getting a merchant account with a different bank.
Do you feel that you communicate well with your vendors? Do you take the time to talk to them about their orders, products, services, etc.? Can you identify areas where they are going above and beyond for you? As a business owner you have to know what you expect from your vendors and hold them accountable.
You will get along better if you can communicate well with them. As a business owner you need to ensure that you always stay on top of payroll and understand when it is time to tell someone to get off the payroll.