Welcome back!

Summer is finally here, and I'll bet that your garden is not the only thing that's growing. If you're like most small businesses, you're starting to feel the up-tick in the economy, and for the first time in a long time, expansion is once again on the horizon!

That's good news of course, but the increase in business might also require changes in the way you finance your company. For many of us, that means (maybe for the first time) establishing and cultivating a relationship with a banker. This month we offer a few real-world-tested suggestions for finding the banker of your dreams!

Cordially,


Marijo McCarthy, Esq.
President, Widett and McCarthy, P.C.

As your business grows, self financing may no longer be an option. More projects, bigger clients and a faster pace may require that you spend money (e.g. invest in new equipment, hire additional staff) before seeing a return. When that day arrives, the wise small business owner will already have a banker by his side.

And despite all the recent banking mergers, when it comes to choosing a partner, there is no "one size fits all." Banks have personalities and cultures, just as small businesses do, and you need to be sure you'll be comfortable in this relationship.

Remember, professional relationships are a two-way street! With that in mind, here are my five suggestions for finding the right banker for your company:

1. Don't wait until you need the money. As with most significant business relationships, it's important to think about — and shop for — someone who can meet your needs before things become critical. When you're under the gun you're in no position to make rational judgments. Also, by reaching out before you need a business loan, you'll have the ultimate negotiating chip in your back pocket — the ability to walk away from a relationship that doesn't feel right to you.
   
   
2. Do meet prospective bank partners in a business-oriented social setting. It's much easier to evaluate potential partners in a relaxed setting, such as an association or other business meeting. Seek out bankers at these events (they tend to be well represented!), and if you find someone you like, make a follow-up call the next day to suggest a cup of coffee together. This kind of low pressure meeting will give each of you a chance to size the other up and see whether the relationship has promise.
   
   
3. Don't discuss a loan or specific need right away - discuss your business instead. First meetings (like first dates) are times to explore possibilities. Neither of you has all the information needed to decide if more meetings make sense, and these early get-togethers have many of the same doubts, questions, information-seeking and just getting generally comfortable that personal relationships do. Good bankers want to know you and your business before they are faced with a loan application, so give them a chance to become familiar.
   
   
4. Do invite your new friend for an onsite visit. If the first few meetings go well, go ahead and invite your banker to your office or manufacturing plant for a visit. Yes, folks, bankers do make house calls and are eager to do so! They want to get to know you, too!
   
   
5. Don't spread your business around. Lots of people will tell you that it makes sense to work several banking relationships simultaneously, so that you can, "play one bank off another." In my experience, this is a bad idea, and contrary to what creating a long term, trusting relationship is all about. Instead, I recommend you pick a banker, build a relationship and work it for all it's worth. In this case, putting all your eggs in one basket will work to your advantage, as it's better for your business over the long term to have one knowledgeable banking ally than several casual acquaintances.

If you're looking for a particular organization in which to meet that banker of your dreams, I whole-heartedly recommend SBANE (the Smaller Business Association of New England).

SBANE's monthly breakfasts and evening receptions are the perfect setting to get your banking (and other professional service) relationships started! Visit www.sbane.org and get profitably connected.

Widett and McCarthy helps small business owners start, grow, acquire and sell their businesses.

We serve as "in-house counsel" . . . on-call when needed, but not part of the company overhead. Our best clients understand that the relationship between lawyer and client is a two-way street, built on information sharing and problem solving.

For more information regarding
how we can help you, click here.

• U.S. Treasury
• MCAD
• SBANE
• US SBA Office of Advocacy