Banking relationship has effect on company future

You've invested plenty in your business. Planning. Time. Capital. Strategic thinking.

Have you put the same energy into building a banking relationship that can help your business achieve success? A bank that fits your style and your enterprise will guide you to apply the right financial tools when they're needed most.

To find the right banking relationship:

Think long-term. Start by taking into account your company's needs current and future. Consider where you want to be five or more years from now.

Choosing the bank down the street may be convenient today, but if you plan to expand, a bank with the right technology may better fit your long-term needs. Using technology, a bank can help support your daily operations.

Look for a bank that employs professionals who will give you the attention your company deserves as well as providing the products and services your company is likely to need as it grows.

Talk it out. After you've identified several banks that will meet your current and long-term needs, arrange to interview representatives of those banks in person. Remember that the interview is an exchange. Be honest about your situation and your goals, and expect the same honesty from the banker.

Request customer references that are similar to your company in size or function, and contact those references to ask about the quality of service and advice the bank has provided.

Address how you and the banker can work together efficiently. Outline your expectations and ask the banker to reciprocate. Be sure the banker is willing to take whatever time is necessary to answer each question and explain each process.

Look for industry experience. The right banker for you may already know something about your industry or can draw upon other expertise within the bank. That experience particularly benefits owners of smaller businesses and new entrepreneurs because the banker will understand the specific needs and challenges of the industry niche you plan to fill.

At the very least, the banker should show an eagerness to learn about your business.

Understandably, new business owners are excited at the prospect of success. The banker who does the job right will be a financial consultant who can shorten the learning curve and help you move more quickly or temper your enthusiasm when experience suggests slowing down.

Find a banker who has worked with successful businesses that are similar to yours. The banker should not share other clients' proprietary information, of course, but he or she can help you learn the strategic concepts and financial solutions that have helped similar businesses succeed. You can avoid mistakes that have placed similar businesses in precarious financial situations.

Find the right seasoning. Be sure that the bank has experience in dealing with the economic changes that affect virtually every business. To survive and excel, your business must be ready to adapt and change as economic conditions dictate. The right banker can help develop a road map to success, helping to navigate changing conditions so that potential dead ends turn into minor detours.

Access the technology. The technological services the bank offers are likely to be a significant resource to your business, especially when it comes to saving time.

For example, it may be beneficial to access your accounts via computer or have the bank process your daily deposits, allowing you to concentrate on business development.

Require a success orientation. Some bankers are transaction vs. relationship oriented. Most important is a banker with a passion for helping you succeed, a banker who will enthusiastically use progressive product and information resources to help you set and reach your business goals.

Build your team. When you find a banker you like at a bank that offers the services and products you need, arrange for the banker to meet with the other investors and advisors on your team, including your accountant and legal counsel. Encourage open communication among them.

Find out if the banker can foster an environment in which general information is freely shared. Before you finalize the banking relationship, make sure your advisers share your confidence in the banker and the banking institution you've chosen.

Enjoy the payoff. A good banker will help you save time as well as money, so that you can continue to enjoy the things that attracted you to your business in the first place.

(Jan Baumgartner, CCM, is a senior vice president and manager of the Treasury Services Group at Commerce Bank.)