Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9 pm ET. This is excerpted from my recent interview with Greg Morse @WorthingtonBank. Greg is the CEO of Worthington National Bank www.worthingtonbank.com, a regional bank based in Fort Worth, TX that believes in doing business the old fashioned way. The bank’s philosophy is that all customers are treated the same and clients are a name, not a number. Morse has almost 30 years of banking experience, and founded Worthington National bank 10 years ago. Morse is the author of the book Getting to “Yes” With Your Banker, to learn more www.gettingtoyeswithyourbanker.com.
SmallBizLady: How can I make my small business successful?
Greg Morse: One of the first steps to making your small business successful is creating a business plan that is honest and viable and defines your objectives. Assess possible pitfalls and develop your action plan to avoid them.
SmallBizLady: How frequently should I be assessing my business’ success?
Greg Morse: Business owners need monthly numbers to figure out how they’re going to hit their projections. If you cannot measure something, you can’t manage it.
SmallBizLady: What are the typical qualifications for a small business to secure a business loan?
Greg Morse: When we are considering small business loan applicants, we typically look for candidates that have a clean credit report and that can prove to us they have been successful with good cash flow. Businesses that stick out to us have been solvent for three or more years and have an owner who has some skin in the game. When an owner has put their own money into keeping their business afloat, that tells us they are actively involved in making their business a success – a quality we admire.
SmallBizLady: What are the best ways to build a business relationship with a business banker?
Greg Morse: The easiest way to build up your relationship with a business banker is to get to know him or her as a friend. Attend community events where he or she might be to continue building that rapport.
SmallBizLady: How much financing should I ask my bank for?
Greg Morse: Never go in and ask a bank for 100% financing on anything. It looks much better to a bank if you have some skin in the game.
SmallBizLady: Do you have any recommendations on connections I should make to be more successful?
Greg Morse: I recommend having four people you can call on for advice without fear of being billed, such as your banker, an accountant, a lawyer and a doctor.
SmallBizLady: How should a small business manage a line of credit?
Greg Morse: Every small business is different and varies depending upon the nature of the business and the industry it is in. We recommend proving that you are fiscally responsible by using your line of credit frequently but also diligently paying it off. It is also very important to keep your personal credit clean.
SmallBizLady: What are some financial issues that I should try to avoid?
Greg Morse: Never be past due or overdrawn on a loan.
SmallBizLady: How much of my profit should go toward paying off my loan?
Greg Morse: Each individual has to find out what works best for their situation, but I suggest always retain some of your profits.
SmallBizLady: Do you have any recommendations for my personal finances while I’m try to grow my small business?
Greg Morse: Yes, always keep a clean personal credit report. While your personal and business accounts may seem like separate entities it’s always smart to keep your personal financial matters in order.
SmallBizLady: Should I bank at the same place that I finance through?
Greg Morse: Yes, keep your deposits where you borrow your money.
If you found this interview helpful, join us on Wednesdays 8-9 pm ET; follow @SmallBizChat on Twitter. Here’s how to participate in #SmallBizChat: http://bit.ly/S797e
For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.
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