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Bankers and Investors are People TooThese vital financial resources deserve special attention; especially during those times when you don't need something from them. When you do need something, their ability or interest in meeting your needs will often hinge on the nature of your personal relationships. Financial stakeholders thrive on information and communication. They want to know what's going well so they can feel confident about their decision to commit to you. And when things are not going well they want to know that there are no nasty surprises waiting to embarrass or hurt them. The fear of the unknown is usually worse than knowing what the problems are. You can work to solve known problems but you cannot solve the unknown. Recognize that financial relationships do depend on ratios, collateral, and risk. Financial partners are looking for your ability to repay loans or provide a return on the investment. Beyond the cold hard numbers of the P&L and balance sheet, however, they are looking to the people of the organization to instill confidence so they can take the risk. How you relate to these people, then, is often as important as what your company does…particularly when there are issues. Since bankers are so important, it is recommend that you establish relationships with one or two banks beyond the one you are dealing with now. Don't look at bank representatives as just sales people but rather as potential allies when your financial needs change. The same may be said for investors. Bankers and investors appreciate how well you use their money too.
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Cost Reduction & Profit Improvement
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