Read an article about banking in Inc. Magazine a while back about how to work with bankers. There are a couple of good points in it that I like to use as a reminder to my customers.
The first is not to hide bad news. This is one of the most important things that I tell my customers. The worst thing that you can do is assume that you need to keep your banker in the dark when bad things happen. A good banker wants to know all the news, not only the good, but also the bad. We are here to help you. As I tell people, no one likes surprises. Honest, open communication that goes both ways between banker and customer is essential to us both meeting our goals.
The second was to plan for the worst. We have been telling people for a while to plan for best, most likely and worst-case scenarios. The companies that are coming out of the recession now are the ones who have planned for it. It’s also not too late to take an honest look at your business. After all, I have heard in the last week alone that we are coming out of the recession, that we are only going to go deeper into recession and that we have no idea where we are in the recession. I don’t know if anyone really knows. I heard an economist once say that he had the only job in America where you could be wrong 100% of the time and still be employed.
Be honest with your communication and your planning and you will make good things happen.