Plumas Bank: Building a business team? Include these 4 members
Special to the NNBW
No matter how big or small your business is, it’s extremely important to build your business team. Your team should be composed of four team members consisting of your banker, investment broker, accountant and attorney.
It’s important to establish these relationships with these four professionals, no matter where you are in your business cycle.
If you are just starting a business, growing your business, looking at acquiring a competitor or selling your business, your banker, investment broker, accountant and business attorney will play a key role in providing you with the advice necessary to help you make business decisions.
When forging these relationships, it is important to make sure that your business team members understand your business as well or better than you, the owner.
You should create files with your business team members so they have all the information about you and your business. During the life of a business, there are situations whereby you don’t have time to build relationships, but rather, rely upon existing alliances in order to have a successful endeavor.
It is critical to have an existing relationship with your banker. If capital is required to start, grow or acquire a competitor; the first one to the finish line usually wins.
Making sure your banker has a complete financial package and business plan, in addition to knowing the direction of the company, is imperative to your success.
It’s important to have the relationship in place to expedite the access to capital. This will enable you to make those important business decisions that will have a direct impact on you and your business.
A great example of this is if you struggled through the Paycheck Protection Program (PPP), then you may not have had a solid relationship with your banker.
For those who had a good banking relationship, they experienced an average turnaround time from application to funding of 1 to 10 business days. If you didn’t experience the same results, then I would challenge you to either strengthen your existing banking relationship or begin a new one.
Having a strong relationship with your investment broker is also a critical element in business success. Developing a plan to grow your own capital position will increase your ability to start, grow or acquire other businesses.
Your investment broker can also play a strong role in planning for you or your business’s future. Your broker not only plays an important role in growth of the business, but also in tax planning. This relationship should be an important component of your monthly conversations related to your individual and business goals.
Having your accountant as part of your team helps you make those business decisions that will impact growth opportunities, purchases, amortization and tax planning. A strong relationship with your accountant will help guide you through all the complex tax laws that have an impact on most business decisions you are faced with on a daily, weekly and monthly basis.
In addition, having monthly, if not twice-monthly, reporting on your business’s financial performance will enable you to make financial decisions that can quickly alter the direction of your business with less financial pain to the pocketbook.
Lastly, but no less important than the other three business team members, is your relationship with your attorney. Your relationship with your attorney is fundamental — from the formation to the sale of your business and everything in between.
Like the other team members mentioned, your attorney should be included in your business plans and goals. By doing so, you will avoid many of the common pitfalls and hurdles that can have a negative impact to your business.
For you and your business to be successful, you will need to rely on strong business team members to bring their expertise to your conference room, your business and, most importantly, to you and your employees.
Other essential team members include your suppliers, vendors, marketers, HR/Payroll to name a few. However, your business team of four will enable you to be the expert in growing your business, allowing you to take advantage of opportunities presented to you and providing the required time to dedicate to the success of your business.
It’s never too late to begin those relationships, so that you can obtain your dreams, goals and own a successful business.
Ty A. Nebe was promoted in June to Senior Vice President, Commercial Loan Officer of Plumas Bank’s Sierra Nevada Region. Go to plumasbank.com to learn more.
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