Businesses need good relationships to thrive. Before you make new customers, you need those who have known you and knew where you are coming from to stand by you. Patronages on one hand, you also need good relationship in with fund providers order for you to properly finance the business.
To keep your business well financed and always cash flow for business at all times, fund providers play key roles.
You may not have the money you need to move your business forward but you can solve the cash problems if you talk to the right person or organisation. But talking to someone who doesn’’t know you may not yield the desired result when you are in a strait to make something happen. At best you may sound so desperate and thereby send a wrong signal to whoever you are talking to. The outcome of such desperate discussion may be disappointment and wasted time.
There are several fund providers but we are going to focus on the financial institutions in this piece. Besides the individual opportunity to apply for fund from financial institutions, there are of recent some attempts to provide intervention funds to stimulate some sectors of the economy. The fact is that not every business that is in dire need of fund will have access to it. Many entrepreneurs will be denied the money because of poor banking relationships.
Support or help works on trust: where trust is lacking it may be difficult for help to come. Financial support relies so much on trusts but where your financial institution cannot really prove to know you, there is bound to be a snag when you sorely need such fund providers to be by your side.
Therefore, you need to prepare ahead of time so that you don’t miss opportunities when they come your way. If you are an entrepreneur or you hope to become one in future, your attitude to financial institution and banking relationship should not be negative. Though some of the financial institutions are excessive in their activities, yet you cannot close your eyes to the good side and benefits derivable from the fund providers. I will itemise in this piece 11 reasons why you should cultivate good relationship with financial institutions.
1) The manner of relationship you have with a financial institution will influence whether it will readily be willing to support your business ideas with fund or not.
2) If you desire to grow your business and become a reputable brand, the time is coming that you cannot conduct certain business transactions without the use of the financial institutions.
3) If you wait until you need any before you open an account, you may not get what you are looking for at the time you need it. The best time to start the relationship is now when it seems you don’t really need the financial institutions.
4) You cannot run away from some financial services when it comes to real, sustainable wealth creation. Only financial institutions can render most of these financial services.
5) Banking history is key information in international business relations. The embassies need it to approve your trips while some foreign business transactions may require your financial institution to say something about you.
6) Financial institutions are not charity organisations that can treat funds in their custody as if it’s meant for charity (even charity organisations will establish the genuineness of your request before acceding to it), it is how long they have known you that will determine whether they will listen to you or not.
7) Integrity is a key factor in the relationship between you, your business and the financial institution of your choice. If you don’t make a move to build the goodwill, you may not enjoy it when you need to.
8) A good relationship will permit your financial institutions to allow you temporary or short term financing by allowing you to overdraw your account balance to meet emergency financial needs. You may need this special request anytime, therefore it is better you start preparing for it today.
9) You don’t really know how huge your business may be tomorrow therefore you need to put in place necessary financial relationships that may help facilitate a brighter future.
10) It pays better to service your investment activities through funds in your bank account. Let your bank account be the interface.
11) You can only get needed support to easily execute your ideas when you have a relationship that starts before you start to pursue such ideas. Only financial institutions that know you that can easily assist you.
. Emmanuel is a business planning and cooperative consultant. He works with a team of international consultants to conceptualise and plan agribusiness and housing projects. As a certified trainer authorised to use the International Labour Organisation’s enterprise development modules, he trains entrepreneurs and organises workshops and seminars for potential and practising entrepreneurs as well as business managers and cooperatives. He also speaks and facilitates at leadership and management workshops on invitation. His book, Business Planning Made Easy: Step by Step Guide On How To Turn Your Idea To Profitable Business’ is the latest of the books authored by him. Tel: +234(0)9068602954 (call and sms), +234(0)8023257707 (whatsApp only).
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