Why You May Want to FIRE Your Banker

Being an entrepreneur today is one of the most difficult things imaginable. Business can be cut-throat and challenging and the best entrepreneurs find and maximize every possible advantage. One area of advantage that is often overlooked is their banking relationship. Now I know that most entrepreneurs are going to think “This doesn’t apply to me – I love my banker.” But for far too long, entrepreneurs have put up with business bankers that sum up their value propositions with such taglines as: “We are a community bank that knows all of our customers by name” – or – “We give service to help your business grow” – or – “Call us so we can start growing together.”

These are great soundbites – but sometimes it feels like “help” is only given when is is not needed; “service” is code for sales and it is only the bank that “grows” out of the relationship. Banks (and bankers) are sometimes viewed at best a commodity and at worst a necessary evil.

If this sound familiar with your banking relationship, then I would recommend that you seriously consider FIRING your business banker. As an entrepreneur, you have so many things you have to deal with – having a banker that is not using every ounce of their strength, knowledge and passion to support you and your goals should not be one of them.

Here are 10 ways that you can tell if your business banker is a commodity – or an ENTREPRENEUR’S BANKER. An ENTREPRENEUR’S BANKER helps transform your banking relationship into one that is a competitive advantage for you and your business.

1. Where does your banker meet you? You are pulled in many directions, and like most entrepreneurs you don’t generate revenue talking to your banker; much less the drive time across town to sit in their office. An ENTREPRENEUR’S BANKER realizes this this and insists on meeting at your shop. This not only allows you to stay focused on your passion; but it allows them to see your world through your eyes. An ENTREPRENEUR’S BANKER knows this shop view is critical understanding where you are and where your strategic goals are going to take you.

2. An ENTREPRENEUR’S BANKER spends more time understanding and learning about you and your goals than they do telling you about themselves. An ENTREPRENEUR’S BANKER knows their world revolves around you and their sole purpose is to solve problems and give you a competitive advantage. An ENTREPRENEUR’S BANKER believes time is better spent proving their worth, not talking about it. Worth is proven by aligning your banking relationship with your strategic goals; while tenaciously helping you achieve those goals.

3. What is their process when asked to solve a problem? The best way to solve a problem is:

• Identify the problem and its cause
• Identify desired goal
• Gather pertinent data
• Analyze the data through the lens of the desired goal
• Identify possible solutions
• Choose and implement the one that not only solves the immediate problem; but is in alignment with the larger goals.

It is a red flag if your banker provides you with a solution before they have even gathered the data. An ENTREPRENEUR’S BANKER takes time to follow the process that pushes you towards your goal with every solution offered.

4. Do they know their job well enough to present creative solutions to your problem? Everyone loves the burger jointwhere “you can have it your way.” The banking relationship that provides you with a competitive advantage is a little more complex than extra pickles and cheese with a little special sauce on your drive-thru burger. The ENTREPRENEUR’S BANKER takes pride in solving your problems effectively but also creating options for you to consider. They use their expertise to develop alternatives that you may not know of or have the time (or desire) to consider. Would you tell your other business advisors exactly what your issue is and then tell them the only solution to the problem?

5. An ENTREPRENEUR’S BANKER is competent enough to help a company from start-up/ to growth/ through difficult time and exit. Every business has a life cycle; with the tactics and strategies that you use evolving along the way. The ENTREPRENEUR’S BANKER never forgets your long term goals and provides advice that gives you the advantage in the cycle you are in. They should be able to give you specific examples – not just marketing copy on how this is accomplished with other customers.

6. An ENTREPRENEUR’S BANKER has a growth mindset – even when the worst thing possible (getting fired by a client) happens. Everyone has been fired by client; including bankers. No one likes to fail, but what sets the ENTREPRENEUR’S BANKER apart is how they grow from failure. Commodity bankers tell themselves “that client was just not a good fit for the bank” or “there was another bank that came in and offered crazy terms”. An ENTREPRENEUR’S BANKER is obsessed about serving their entrepreneurs; learning from times when they fail their entrepreneurs; and relentlessly working to never repeat that mistake again.

8. When can we meet again? You don’t meet with your other business mentors only once a year. A commodity banker is only good for the money they allow you to rent; so they are content to see you only when it is time to sign a loan document. The ENTREPRENEUR’S BANKER is so laser focused on you achieving your strategy (and what they can do to helping you achieve that) that they are learning about your results and goals often. How often is too often? I think a better question is: “How can your banker transform your banking relationship into one that provides a competitive advantage for you and your company?”

9. Health Exams aren’t just for doctors. All bankers ask for financial information – it is the data that is analyzed to assess your business. A commodity banker just tells you the business is strong or not. An ENTREPRENEUR’S BANKER is more concerned about helping you see your long term goals through the understanding your businesses financial health; offering comparisons to your industry / peers and discussing positive and negative trends. Would you set a health goal with your doctor; and after a check-up, be satisfied with a simple “you are strong” or “you need some work”? Of course not, you would demand to know your exact progress; how all the hard work of diet and exercise is moving you towards your goal, and what needs to be done next to make your goal a reality.

10. What do your other mentors think about your banker? Entrepreneurship today is a team sport – meaning that there are more mentors and advisors willing to pour into entrepreneurs than ever before. In fact, many entrepreneurs have more than one mentor. The entrepreneur that is looking to exploit every advantage insists the mentors meet. This ensures they are receiving well-rounded and impactful advice. You trust your other mentors; why not ask them for their impressions of your banker? One thing will be clear to them – a commodity banker cares more about themselves and their business; while an ENTREPRENEUR’S BANKER cares more about your business and your success.

In the arena of business today––you need every advantage that you can find. It is time to start demanding that your banker be more of your champion and less of a commodity. You deserve an ENTREPRENEUR’S BANKER, even if it means firing your business banker!

Greg Martin is an entrepreneur’s inside man in the banking industry and passionately believes that every person was uniquely designed for a higher purpose and calling. Greg works with entrepreneurs from all sized companies, helping them transform their current banking relationship into one that is a competitive advantage. He is most proud of being a husband and father.