Banking mistakes begin while choosing a bank over the others without a proper assessment.
As an entrepreneur, if what you consider in a bank is not how the bank can help your growth, then you’re making a very big mistake.
There are better ways to choose a bank than considering the brand and the noise.
If anything is wrong with the choice you make, don’t be surprised when your bank begins to show you its other side. And for that not to hit you where you won’t like, you have to take care of these five common banking mistakes now.
If you’re having one issue or the other with your bank, the question is how did you come about the bank?
Was it based on a personal relationship with staff, beauty, structure, or sweet words you read on papers about the bank? This is just a strategy to entice customers, not about the bank’s reliability.
What criteria did you set to test the bank’s suitability for your business?
Did you come about the bank based on trust? How best can the bank serve your business needs?
You should rather consider how a bank would be of great advantage to you. Otherwise, you would be making these five banking mistakes.
But the question is how many banks are ready to commit to your business goals and offer the best you need?
Take for instance, since banks don’t wait for new customers to come anymore, they make their products outside and lure people.
Meanwhile, the approach is not convenient for either the banks or the customers. Most services they offer in such manners are either inappropriate or incomplete. And most customers don’t know this until the need to use the service arises and put their business on hold.
So, if you don’t want to be trapped in this kind of situation, avoid the following banking mistakes:
1. Inability to Differentiate Between Banks
If all banks are the same, there will be less competition among them. But since all banks have different objectives, you should expect differences in their services.
As banks differ, one bank will suit you better than the other.
So, if you fail to make the assessment, you might end up building a banking relationship with the wrong bank. Before choosing a bank, do your best to find suitable answers to these 11 questions your bank prays you don’t ask.
2. Not Paying Attention to Business Objectives
Not paying attention to your business objectives is one of the common banking mistakes you have to avoid while choosing a bank. Most entrepreneurs that make this mistake end up being unhappy with their banks.
If you don’t know your business needs, growth will be a problem. Consequently, differentiating between threats and opportunities that come from your financial options will be difficult.
3. Better the Devil I know than the Angel I Don’t
The fear to change banks when the experience is bad is also another banking mistake most entrepreneurs make.
One of the reasons why you might need to change banks is the excess fees that some banks charge for their services. Most customers suffer in silence instead of looking for a better bank.
It’s a big mistake if you find yourself in this circumstance but still can’t move out because of the fear of the unknown.
4. Peer Pressure – One of The Banking Mistakes
It’s very unfortunate if at this level you can’t set a parameter for proper decision making in your business but rather do follow for following. Even if you must use the same bank as your peers do, make sure you have reasons that are favorable for your business.
5. Existing Relationship with Bank Taking Influence
Finally, the fifth common banking mistake is to allow your personal interest to take over your business interest. It is a very big mistake to choose a bank for your business because of an existing relationship with a bank or its staff without further scrutiny.
Assuming you’re running a personal account with a bank, because you don’t need certain banking products or services such as credit or loan, you might not know if the bank will be suitable for business except you find out.
If you want to succeed in whatever business you do, avoid all these banking mistakes.
All your hustle, sleepless nights, and restless days designing life-changing products, services, and resources for your customers should be complemented with a good banking relationship.
If you have a good marketing strategy in place, yet your customer can’t conveniently transact with you, there is a problem.
So, to avoid these banking mistakes, take your time to assess different banks and choose the right one for your business. Let the assessment focus on all necessary resources your business needs from a bank to meet your goals.