As business owners navigate growth, transition and uncertainty, the right advisers can help them make stronger, more informed decisions. Building a financial “inner circle” creates a trusted team that understands the business, anticipates challenges and supports long-term success.
A business owner’s financial inner circle is the trusted team that helps guide financial, legal, operational and strategic decisions. It often includes a commercial banker, an accountant, an attorney, a financial adviser and an insurance professional.
“When advisers understand the owner’s goals and communicate well, they bring broader expertise, stronger decisions and added confidence during opportunities and challenges,” says Mitch Duale, VP, Commercial Lending at First Federal Lakewood.
Smart Business spoke with Duale about the importance of aligning these key relationships.
What separates businesses that treat their banker as a transactional partner from those that treat them as a strategic adviser?
It comes down to engagement. A banker can serve as a sounding board, connector and strategic resource. Businesses that treat their banker as a strategic adviser include them in conversations about growth, acquisitions, capital investments, succession and potential challenges. Early involvement helps the banker offer insight, identify options and structure solutions proactively.
During growth, a banker can help evaluate capital needs, cash flow, treasury strategies and financing structures. During ownership changes, acquisitions or succession planning, they can coordinate with attorneys, accountants and other advisers.
In uncertain conditions, a banker can provide perspective on liquidity, interest rates, market trends and risk management.
What are some missed opportunities when business owners don’t engage their banker early enough?
A common mistake is waiting until financing becomes urgent, which means the business may have fewer options and less time to prepare information for approval.
Businesses also miss opportunities in cash flow management, treasury services, equipment financing, acquisitions and succession planning when they bring in their banker too late.
What role does communication play among these advisers, and how can business owners encourage better collaboration?
Business owners should view their advisers as one leadership team. Communication is essential because major decisions often carry financial, tax and legal implications. Open dialogue helps advisers spot issues earlier and develop better solutions.
Owners can encourage collaboration through periodic meetings or strategy calls with key advisers. Even one annual or semiannual discussion can prevent silos and create alignment.
What key financial insights or data points should business owners regularly review with their banker and accountant?
Owners should review cash flow, working capital, debt service coverage, profitability, liquidity and borrowing capacity because these metrics are a great indicator of the business’s health and flexibility.
They should also discuss projections, capital plans, customer concentration, inventory trends and upcoming milestones. Forward-looking conversations help advisers prepare owners for what comes next.
Informed advisers make decisions more efficient and outcomes stronger. The most valuable discussions focus not only on where the business has been but where it is headed. ●
INSIGHTS Banking & Finance is brought to you by First Federal Lakewood.
