Banking Relationship - Russell Colbourne

Russell Colbourne : Your Money Machine

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INTRODUCTION
Your business is Your Money Machine.  In this Show – I’ll take you under the hood of your enterprise and show you how to fine tune your business.  Get ready for lift off as we add rocket fuel to your profitability!  This show is focused on businesses that have launched and are preparing for exponential growth.

Are you sure you’re ready for exponential growth?  Getting your mindset right to transition from business owner to CEO.  Are you prepared to give up some control and trust others to help you build?  As well as ensuring all your systems and standard operating procedures have been documented and are in place, you will need to ensure your financial reporting provides you with the feedback you need to run your business. 

Developing a strong relationship with your bank provides tremendous benefits including offering necessary funding, preferential rates and better terms. Your bank can provide expert financial advice and help you to find solutions to financial challenges. It can also help you to grow your business and reach your financial objectives. Since your bank works with a wide variety of businesses, it can also be an excellent source of prospective vendors, partners and customers for your business. 

What You Need to Know - The What

• The main reasons SMEs have poor banking relationships
  
• Why you should develop a strong relationship with your bank
  
• The benefits of strong banking relationships
  
• How a part-time CFO will strengthen your banking relationship.
  

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What You Need to Do - The How

There are many activities that sit behind each of the 12 boxes and the list below is not exhaustive, but merely gives some examples of what a business owner needs to consider in the area of Banking relationships:

• Develop a relationship with key personnel at the client’s bank; 
• Share information about your business with the bank and keep the bank fully updated. The more trust that can be built the more the bank will be willing to help; 
• Provide the bank with a credible business plan which takes into account previous track record including debt and cash flow history; 
• Obtain independent advice on bank products and their suitability from a suitably qualified CFO;
• Negotiate the best deal on bank facilities; 
• Provide access to senior contacts in the bank where required; 
• Obtain advice on new banking options if needed and support required in negotiating terms
• Discuss providers’ compliance policies to ensure that they will take on the responsibility (where appropriate) to adhere to laws and regulatory requirements

Shows 

• Previous: Episode 4 – Outsourcing
• Next: Episode 6 – Internal Systems

 
Written by Russell Colbourne, FCCA, GAICD
Your Money Machine

Russell is a CFO and Entrepreneur who has worked across a diverse range of industries over the past 25 years.  After a short service commission as a pilot flying Seaking Helicopters in the British Royal Navy, Russell studied business and qualified as a Chartered Certified Accountant (ACCA) in the UK. Since then he has been integral with the start-up of many successful companies and operations within larger organisations.  He has bought, sold and spun off business operations in the UK, Australia and the US. 

In 1994 Russell joined Sir Richard Branson’s Virgin Atlantic Airlines where he was responsible for a number of innovative services that were, at the time, ground breaking and helped revolutionise air transport.  From launching the world’s first limo boat on the River Thames to developing the world’s first handheld check-in device and implementing drive through check-in booths around the world, Russell has helped the Virgin Group deliver unparalleled customer service. In 2000 Russell was the first of the Virgin team to arrive in Australia to start a new low cost Airline, and within 8 months had built a team operating flights between Sydney, Brisbane and Melbourne.

Russell now works as a Part Time CFO for a number of SME businesses in South Australia.  He is a Director of a health and wellbeing business; a crowdfunding website for educational costs and of the Founder Institute program in Adelaide where he lives with his wife and 3 teenage sons,
 

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