A common goal of every financial institution in the country is to attract and retain good clients. For many, this includes a focus on the small business community. There are more than 30 million small businesses in the United States. How do you attract them to your institution?
More importantly, how do you strengthen the relationship once they become clients? Most lenders would agree that the goal is to develop long-term relationships that follow the natural progression of the business life cycle, from the early start-up phase trough growth and maturity stages. But what is the secret formula that allows some institutions to excel in this area? What helps your organization rise to best-in-class status?
When faced with this challenge, it makes sense to first take a close look at your market. Here are 10 basic steps to follow when building small businesses relationships:
Before you initiate any of these steps, it helps to understand what small business clients want in a banking relationship. This understanding allows your team to rise above the rest. Taking the time to truly understand your market will pay huge dividends with both new client acquisition and retention. Here are seven questions most small business owners ask when deciding on a long-term financial institution relationship.
As you can see from both lists, developing long-term relationships cannot be done without dedicated and well-trained employees. While technology can be used to make your interactions more efficient, the business of winning clients always comes down to your employees. That is what sets you apart. The most important money you can spend in your organization is dedicated to hiring and training the best people you can recruit. That is what makes you the best in your class. That is what distinguishes you from your competition.
Always understand that employee training is never complete. Just as your market continues to change, employee knowledge of that market must continue to evolve.
To help you in your search for new business clients, we offer you our newest white paper, The Seven Pillars of Effective Small Business Financial Management. This white paper will help you identify the seven traits to look for when considering potential borrowers.
Like this article? You can receive similar insights from ProfitStars® every two weeks when you subscribe to our Commercial Lending blog.
Stay up to date with the latest people-inspired innovation at Jack Henry.
Learn more about people-inspired innovation at Jack Henry.
Who We Serve
What We Offer
Who We Are