Why Should I Listen To My Banker?

I recently sat on a panel at an entrepreneur forum and was asked “Entrepreneurs want mentors that lived what they live and done what they want to do. 99.9% of bankers out there have never created, grew or sold a business. Why should I listen to them? They have never done what I do? What makes them qualified to give advice?”

The answer to this question is the foundation of a mindset that I call the ENTREPRENEUR’S BANKER. Many bankers have allowed themselves to be transformed into commodity brokers. In today’s environment, there is little difference in the services that banks provide (one banks’ money is just as green as another’s). As a result, many clients don’t see the banker’s value beyond a loan or an account. So, when an ENTREPRENEUR’S BANKER states that they want to speak life and value to the entrepreneur – the entrepreneur is naturally skeptical.

Having access to loans, accounts and other bank services are important. In fact, these should be some of the factors when deciding on which bank partner with. However, I ask you to demand a different type of banker. One that understand where their customers business is today, where the business is going and how to leverage all their experience, knowledge and passion to transform your banking relationship into a competitive advantage. Todays entrepreneur deserve a banker that is as passionate about pushing their business to achieve their goals. They deserve an ENTREPRENEUR’S BANKER. 

It is true that most bankers do not have direct experience wearing an entrepreneur’s shoes. It is also true that all mentors have different experiences, skill-sets and lenses through which they see the world and offer advice. The ENTREPRENEUR’S BANKER starts with your strategic goals and then applies their knowledge and experience for you. “What experience?” you ask – here are a few examples:

1.  Some say that the heart of banking is risk analysis. The ENTREPRENEUR’S BANKER can educate their clients on different risks and discuss potential mitigating factors and/or practices. These risks include: cash-flow, liquidity, concentration, reputation, operational and leverage risk. How the entrepreneur and their banker view these risks may be very different, but the important thing for you is to identify and understand the risk. To paraphrase and old saying: “No risk/ No reward; but you had better Know the risks”.

2. One of the most important pieces of advice an ENTREPRENEUR’S BANKER can provide is the impacts of current (and future) operations on your businesses cash flow. The ENTREPRENEUR’S BANKER realizes this and can provide strategic advice, gained from working with multiple companies on the most critical aspect of your business. Reducing flow risk is extremely critical to the long-term growth of your business. The risks associated with a poorly conceived or executed marketing plan, hiring the wrong people or an inefficient workflow may damage your business; but uncorrected cash flow risk will kill your business. 

3. The ENTREPRENEUR’S BANKER works with companies in different stages of their business life cycle and can mentor their clients through the challenges of starting up, rapid growth, economic downturns and exit.  

4. Gaining insight from fields or industries other than your own may allow you to find ways to disrupt your industry and in doing so – find a competitive advantage. The ENTREPRENEUR’S BANKER works with companies in different industries and as a result, can see what is (or is not) working in other industries and how it may be applied to you. A recent survey stated that many of the worlds billionaires have at least 7 different income streams. This means that they are finding multiple industries and ventures to generate wealth. Many entrepreneurs are extremely successful in building their company; but they allow their ego to get in the way and assume that their success in one field will translate into another. This is a trap that has led to millions of lost dollars, not to mention unnecessary stress. The ENTREPRENEUR’S BANKER provides guidance to entrepreneurs as they push beyond their current scope.

In his book, Leadership Gold, John Maxwell writes “It’s said that a wise person learns from his mistakes. A wiser one learns from others’ mistakes. But the wisest person of all learns from other’s successes.” It is time that you use the experience of an ENTREPRENEUR’S BANKER to find and maximize a competitive advantage that pushes you to your success.

Greg Martin is an entrepreneur’s insider to the banking industry and passionately believes that every person was uniquely designed for a higher purpose and calling. Greg guides entrepreneurs in defining and achieving their purpose and calling. His deepest passion is living life with his wife of 17 years and their wonderful son.