Running a small business comes with a lot of rewards. From building a dream to watching it grow, the journey makes the hardships worthwhile. But even with the ups, all business owners are bound to make mistakes here and there—that’s human nature. However, if our bankers at Cornerstone Bank can help you limit the amount of financial errors, then we have done our job!
As a small business ourselves in the Kansas City community, we’re sharing the most common small business mistakes and how you can avoid them.
1. Neglecting to ask your banker questions
It can be scary to open up to a banker and ask questions (BTW, there are definitely questions your banker shouldn’t ask you), but it’s better to get the answers you need rather than playing the trial-and-error game. You could save yourself a lot of hassle. As a result, instead of spending time reversing small business mistakes, you can focus your energy on growing your company.
Here are a few business questions to consider:
- Am I financially ready to start a business?
- How long does it take to get approved for a business loan?
- Who decides whether or not I get approved for a loan?
- How are my interest rates set?
- Why do I need an appraisal for a real estate loan?
- What kind of resources and technologies does your bank have?
2. Ignoring your bank’s technology and tools
First, you should always seek out a bank with online and mobile capabilities. Wouldn’t you want your bank to make life easier? Second, if your bank does have these resources, take advantage of them! Technology can help you streamline your company’s finances, promote smoother operations, and even save you time and money.
3. Not having a strong relationship with your loan officer
You should see your loan officer as more than a person. When you choose the right loan officer, he or she becomes a resource to guide you through the loan process even after you sign the dotted line. With a strong relationship, you may feel more comfortable sharing your unique circumstances, and your officer is more likely to listen. Plus, if you find officers anything like the ones at Cornerstone Bank, they’ll also be available to offer expert advice to help your business grow each fiscal year.
4. Choosing the wrong bank
It goes without saying that your bank plays a large role in your finances. The last thing you want to choose is a bank that only sees you as a number and won’t take the time to understand your business.
So how do you avoid this?
Try out a local bank! Since local banks deal with a smaller number of customers, they can focus their undivided attention on you and your needs. As an added bonus, local banks are also small businesses, meaning they can offer advice based on real life experiences.
Learn more about avoiding small business mistakes with the help of Cornerstone Bank
More than anything, our bankers are here to help you with any of your financial needs. Since 2001, we have been a primary resource for our customers across the Kansas City metro and the country. We take pride in watching our customers thrive, no matter who you are.
We always put our customers first, and that means giving them the best banking has to offer. We don’t believe in simple banking; rather, we go above and beyond to help our customers make their money work for them.
For more information, visit our Overland Park office or give us a call at 913-239-8100 to let us know how we can help.