Growing Your Business in 2013 Part 1

Banking Relationships in Business
 Developing a great relationship with your banker is paramount to continued growth.  A banker shares in your vision and business plan.  They become a sponsor and mentor to help you reach some of your goals.
A banker should be treated like your best customer.  They should understand your business model, growth plans, strategies, and share in your successes.  You should provide them with a comprehensive Business Plan each year and review the previous year with them as well to explain any issues that you had.
Benefits:

The business needs working capital.

The business needs a guidance line of credit.

The business guidance line is up for annual review

The business needs to take out additional loans for equipment

The business needs to refinance or restructure existing loans

The business is experiencing a cash flow issue and needs a short term unsecured loan.

The business needs to purchase property.

Networking with other businesses (bankers other clients)

Finding a banker who is familiar with your industry can be a challenge but they are out there and they understand the profit margins and overhead your industry operates in.  They have helped others before you and have valuable insight into some best practices.

If you can’t find a banker with industry experience, you can work with a banker and be the benchmark for others.  You need to be open and honest with your banker.  Make them part of your “Board of Experts”.
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Creating a Business Plan

How many of you have ever done a formal business plan?  Do you know where to start?  Do you understand just how important a formal business plan is to running your business?  Well, would you go on a trip with the family and not plan it out ahead of time?  Book hotels, map the route, pack, etc.  Well a formal business plan is just that.  It gives you a way to meet your goals and clearly outlines your plan to others (like loan officers and others) showing them that you are a solid business with a well planned out strategy of achieving your goals.

I am now creating my business plan for JRB Management Services.  As I begin this project I want to share with you some of the basics so you can start yours too!

Business Plan Outline:

  • Executive Summary (Include a Board of Advisers if you are not incorporated.  These can be professionals that you can reach out to for help in certain areas like an attorney, accountant, PR person, etc…make sure they sign a confidentiality agreement with your business as well)
  • Analysis of your Industry, Market, and Competition
  • Products or Services you will offer
  • Marketing Plan
  • Production Plan
  • Management Team and Key Personnel
  • Financial Plan
    • Summary
  • Projected Income Statements
    • Year One
    • Year Two
    • Year Three
  • Pro-Forma Balance Sheets
    • Start Up
    • End Year One
    • End of Year Two
    • End of Year Three
  • Cash flow Projection
    • Year One
    • Year Two
    • Year Three
  • Appendices
    • All back up documentation
    • biographies of Principals

Make sure your plan has a title page that includes your logo, name of business, address, phone number, and a disclaimer at the bottom stating that all information contained within is confidential.

Once you create your plan make sure you share it with your top management and key personnel.  It will become their road map as well to meet the goals that you have set for your business.

Good luck and feel free to post any comments that might be helpful as I begin this process!!