Ask the right questions
Communication with your bank and your banker is as important today as it was 10, 20 or 50 years ago — and, of course, with smart phones and the ability to talk almost immediately with just about anyone anywhere in the world at any time, communication has never been easier, either. But sitting down with your banker in person rather than over the phone remains the best and most effective means of communication, even if it might feel like some sort of lost art. That goes both ways, too; you should want to meet with your banker in person, but he or she should also want to meet with you.
“The first thing that companies can do is sit down with their relationship manager and discuss all the products and services that are currently being provided to them,” Hipskind says. “We try to do that every year because products and services tend to change as far as their relevance and their cost-benefit.
“The companies that have weathered the storm have significant upside opportunities, and the banks are having discussions on how to leverage this. Are there acquisitions that need to happen? Are there clients you can take on from your competitor who went out of business? What kind of working capital do you need to do that?”
It’s important for you to ask the right questions, too, especially if your bank merged with another bank during the recession or if it closed its doors and left you looking for a new bank.
For example, what will the bank offer you in terms of its resources? Will you work with one banker or with a team? As your business grows and changes, will the bank be able to help you meet your evolving needs? And how will the bank support you during your growth or expansion? Will the bank and your banker be proactive and visit your offices or locations in order to learn more about your company and provide trusted advice? Or will the bank offer nothing more than answers to your banking needs?
Think of that first conversation like a first date, of sorts. You want to learn as much as possible so you can determine whether to go out on a second date. If all goes well, maybe those dates will turn into a long-term relationship.
“We look for companies that recognize we’re in a difficult time and are looking for ways to cut costs, and we’re looking for ways to help them cut costs,” Hipskind says. “Those that have maintained really strong balance sheets and have cut costs to address some of the economic issues are seeing a lot of opportunities, and we’re looking for ways to help them grow. There are a lot of opportunities out there for growth. It really is a fun time to be out there talking to businesses. As much as there are challenges, there are great opportunities, too.”