Celebrating and Supporting Small Businesses
According to the U.S. Small Business Administration, 99 percent of all companies are considered small businesses. That’s not a typo – 99 percent!
And, while 80 percent of small businesses are sole operations with no employees, the remaining 20 percent are still responsible for employing 48 percent of all private sector employees.
That’s one of the reasons why the federal government established the Small Business Administration (SBA) back in 1953 and why President John F. Kennedy later proclaimed the first full week of May each year as National Small Business Week. Leaders recognized the need to help small business owners successfully establish and grow their organizations as significant contributors to the national economy.
It is also one of the reasons why Lake Ridge Bank has dedicated an entire department specifically to serving small businesses in our local community.
Getting Started
Regardless of whether a startup needs financing, the bank is often the first stop for most new business owners when they come in to open a business checking account.
If you are just getting started, we recommend you ask to see a business banker during that first visit in order to take full advantage of all the resources and expertise your community bank has to offer. Some of the things I do when first meeting a small business owner:
- Ask lots of questions. This might sound intimidating, but it is not meant to be. I ask questions in an attempt to fully understand your mission and business model in order to recommend other resources. Interestingly, I often hear that these questions help clarify direction for the new entrepreneur, who will report that this conversation was a helpful experience in itself.
- Get you connected with local advisors. While your bank can be a wealth of information and also a great source of initial funding, we don’t offer advice. We do, however, have relationships with local advisory organizations that can help, including SCORE, WWBIC, and the Small Business Development Center at UW-Madison. These organizations can help you write an official business plan and guide you through those early steps to establishing a strong foundation.
- Help you create a team of experts. Most small businesses don’t start with an accountant or CFO on staff. We can connect you with local experts who focus on serving and partnering with small business owners to create a team of professionals who support the business fundamentals of your startup.
- Answer your questions. You will have a lot of questions. We have a lot of experience with situations just like yours. We can help you understand the basics, like the documents you need prepared to request financing or what things the bank looks at when making loan decisions. My small business customers often confide that nobody else took the time to explain these things to them before.
Tips for Making It Big
There are a few recurring characteristics that seem to make a difference in the success of small businesses we serve, including:
- Talk to your banker early and often. Full transparency in where you are now and where you want to go can help us help you more effectively.
- Choose a bank that prioritizes small businesses. Larger national banks put their resources toward larger clients. Look for a bank who dedicates resources to serving community businesses.
- Get your personal finances in order. If you are looking for a business loan for a startup, this is especially important. Since your business doesn’t have a financial history that might indicate prior success, your bank will instead look at how solid your personal financial history stacks up. Now is the time to clean up any loose ends.
- Create a full banking relationship. Deposit accounts and loan options aren’t the only ways your bank can support your business. Set up a meeting with the Treasury Management professional to learn more about fraud protection, easy electronic banking programs, and secrets to worry-free cash flow. Tap into Lake Ridge Bank’s Wealth Management services for help setting up a SEP or 401k, as well as tips for creating a business you want to pass on to the next generation.
The steps you take now can make it easier to reach your business potential down the road. Take advantage of the wide range of resources right here at your fingertips. We are literally and figuratively invested in your success. We want to help.
To discuss your idea for a small business and get started on the path to a thriving enterprise, contact one of our expert Business Bankers today.