R. Shawn McBride Live

Posts for for July, 2017

The Needs of Business Owners Who’ve Left Corporate America

Posted on: July 18th, 2017 by R. Shawn McBride No Comments

Among my clients is a special breed: Those leaving corporate America to start a new business.

Their special issues can be broken down into three categories.

#1. They need protection. These clients usually have mass assets or things they want to protect. They have homes. They have families. They have livelihoods. Unlike many younger business owners, these people typically want to make sure they are protecting their assets and managing risk appropriately. No one wants to have to file for bankruptcy and walk away from a failing business.

#2. They need process. Those who have been in corporate America for a long time understand processes and procedures. They have lived by them for a long time. We want to build processes and procedures into the new business to protect it and its owner.

#3. They need customization. No two people who leave corporate America are exactly alike, and each business arrangement is going to be special. We want to build a culture of customization. We want to start with the way the business is built and the way the partnership agreement or other corporate documents are put together. Throughout the entire business, we want to make sure everything is customized for the owner’s needs.

This class of new business owners shares generalities and maybe nothing else. Someone who’s very experienced working with these types of owners can spot the issues and help create a custom system that works.

What’s your experience with this? Have you seen things that you need as a senior business owner that are not being serviced by others? What types of things are you looking for when you’re starting your next business? Join us in the comments below and let us know your thoughts and experience.

Make sure you download our free checklist to assess your business.  

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer creative daw.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

 

Check us out on the web.

Get Shawn’s latest book.

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook.

 

 

 

 

A Powerful Way to Make Plans Even Better: Use This to Leverage Your Plans

Posted on: July 17th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke about improving your business plans.

Folks, it’s Shawn with you again today, and I want to talk about a powerful way to make your plans even better – something that not enough people do. You know, what I know the number one best way to make your plans better, to make them really realistic and to make them work and to make them achievable? Involve others.

There was a university study done years ago where a professor in California asked people to write their goals down, and they wrote their goals down and some people just never thought about it again, some talked to a friend, and some used a friend for accountability. It may not surprise you that the ones that wrote the goal down, talked to a friend, and used a friend for accountability had much higher achievement rates of their goals, they got there. The ones that didn’t do that stuff, they struggled, they had problems, they did not achieve their goal.

So, what are we seeing here? Talking to your friends, writing your goals down, all of these things are happening. But it’s also in the planning stages, when you build that plan, if you go talk to others, whether it’s your teammates at your company, whether it’s people on your project team, whether it’s classmates at school, or whether it’s other business colleagues, they’re going to find holes in your plan, they’re going to find things that you can do better. And you can use that knowledge and that information to do more, and to achieve, and to get to the level that you need to. So get other people involved in your plan. It’s a very powerful tool and it’s under-utilized and it’s easy to do. Jump on it, let me know how it works for you.

I want to hear from you, join the community at the R. Shawn McBride public page on Facebook. Be a part of our world. Get on the McBride for Business YouTube channel, watch all the videos, tear up the content, a lot of free stuff there, I’m giving away the store folks.

And then, reach out to me, let me know what I can do for you. Make sure you check out the blogs at www.mcbrideforbusiness.com  and www.mcbrideattorneys.com. You will find a ton of content there on building and growing and running your business. I want you to achieve it, folks. And make sure you get the Business Evaluation Checklist at McBride for Business.

Reach out to me, let me know how I can help you. Send me questions, if I see questions in the community, I’m going to answer them in videos. And if there’s some way I can help you individually, let me know, whether it’s coaching, counseling, planning, or working with your groups. I’m here and I’m ready to come out and interface with people and help people get to the next level, so reach out to me. R. Shawn McBride signing off for today, I will talk with you very soon.

Make sure you download our free checklist to assess your business. 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Niels Boegh.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

 

Check us out on the web.

Get Shawn’s latest book.

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook.

 

 

 

 

Three Reasons to Start a Business Now

Posted on: July 17th, 2017 by R. Shawn McBride No Comments

I’m part of the chorus you hear singing that now is a great time to start a business.

Here are three reasons why.

#1. We really are moving into a different phase of the global economy. The world’s economic systems are working together in ways that allow a lot of businesses to start and grow. Gone is the stigma attached to being a small, independent business. More and more businesses know their counterparts are small and independent. Go ahead and start a business because you’re in a well-accepted crowd.

#2. The infrastructure is in place now for start-up businesses with small staffs. The computer software, tracking systems, and other resources are out there and available. This allows you do what you need to do without an undue burden of time and expense.

#3. We’re moving into an economy that encourages creativity, that encourages us to be unique and to apply our strengths. There’s no better way to enable yourself to do the types of things you want to do than owning your own business. As discussed in a prior blog corporate America often beats the creativity out of us. If our corporate structures are washing away our creativity, keep yours alive and be truly economically valuable with your own business.

What are you doing to create opportunities for yourself? Are you taking advantage of this new era of business? Join us in the comments below and let us know your thoughts and experience.

Make sure you download our free checklist to assess your business.  

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer creative daw.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

Check us out on the web.

Get Shawn’s latest book.

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook.

 

 

 

 

Do You and Your Partner Need Counseling? Maybe So, Food for Thought!

Posted on: July 14th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke about disagreements and changes in partnerships.

Hey, folks, it’s Shawn with you, and I want to talk to you about a very important issue. Do you and your business partner need counseling? Sometimes this comes up in the life of a business partnership. Sometimes the business partners start going different directions, and life changes. One of the things I tell business partners to plan for when we start with them early is we need to plan for the possibility of change. We need to understand that life is going to evolve, and that the business partnership may change. So, how are we planning for that? What are we doing to make sure that happens? And, if these changes start creeping up on us, and the business partners find themselves in a different way, this may actually be a time to get some counseling.

Now, it may not be going to your psychologist, like a married couple or going through couple’s counseling, but it can be about making your business better, and how to work together as a team to do more as a group, and how do we get back to common ground. So, a lot of options when business partners start going different directions.

We’ve talked about buy-sell agreements in other videos and training, and we know that that’s one option is we can implement these buy-sells. But, a lot of times the partners came together for very valid reasons. There’s a reason why this business partnership came together in the first place. They do more together, it creates a team environment, and one plus one equals three, so sometimes the business partners want to stay together.

Now, it’s time to do some counseling and learning, and figure out how to do it. You can bring in outside advisors, such as myself or other business coaches, to help coach through the problem, and find common ground, and re-up your business partnership. You can change the terms of your partnership agreement, adapt to the new situation, and continue moving forward. So, it’s a great option to add to your table.

Do some counseling or renegotiation of where you are with your business partner, rather than throw everything else out. Cling to that greatness that got you where you are, and then start moving forward. If this is something that you’re thinking about, keeping you up at night, check out our blog, www.mcbrideforbusiness.com/blog, www.mcbrideattorneys.com/blog, and you’re probably thinking about how do I maximize my value? Go to McBride for Business, sign up for our newsletter, and you’ll get a sheet on how to maximize the value in your business.

And, of course, like the R. Shawn McBride public page, and go to our McBride for Business Youtube channel, so that you can keep getting great and informative business videos, and emails, and blogs, so that we can continue to learn together and do more together. And, I want to know what’s keeping you up at night. Reach out to me at McBride for Business, or give us a call at 214-418-0258. I’d love to know what issues you’re dealing with, and how we can help you do more. Hey, everybody, Shawn McBride signing off. I will talk with you all again soon.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer G Schouten de Jel.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

The End of a Marriage Can Impact a Business Partnership

Posted on: July 14th, 2017 by R. Shawn McBride No Comments

Divorce can be tough on a business.

When a business partner faces a divorce, the huge impact that has on the partner’s personal life may also have profound effects on the business. So, we want to plan ahead.

Divorces are often problematic because courts do not usually think in terms of the continuity of a business. The court is more interested in ending the marital relationship, and will often treat a business like any other asset — car, home, retirement fund. Usually, this means the court is dividing the assets based on community property or equitable principles. The ownership will be divided among the owners. The spouses will each take a portion of the business.

Meanwhile, a business partner not going through the divorce may be completely involved, caught in an unexpected place. For example, if the court simply divides the partnership interest –whether it be an LLC, corporation, or a limited partnership – the result may be the ex-spouse is added as a partner in the business.

No secret here: Ex-spouses tend to disagree with each other a lot.

In an extreme case, the court might award ownership interest in a business to the spouse who wasn’t a partner in the business. So now the business partnership no longer looks as it did before the divorce.

Regardless the details, if a business partnership is altered by divorce, the impact on the management and continuation of the partnership is tremendous. That’s why we want to put plans in place early in the process to deal with the possibility of partners’ divorce. There are ways to plan to keep the business running smoothly so the economic value is protected.

One of the things that can be done is to have a change-of-control provision that allows partners to rearrange themselves if someone changes control of one of the ownership interests. We can also have buy-sell provisions that are triggered by a divorce. Or we might want a buyout provision that forces a partner to buy out another partner who is getting divorced. In all these examples, the provisions are designed to keep the partnership moving forward through a divorce.

That is the key. We need to run some what-if scenarios, understand what will happen if there is a divorce, and put into place a plan to keep the business moving forward despite any partnership changes triggered by divorce.

We’ve seen many horror stories where there was no plan, the outcomes were unexpected, and partners ended up in unexpected places.

What’s your experience? Have you had issues with divorce or separation of partnerships? How have you planned for these issues? Join us in the comments below and let us know what preparation you’ve put in place.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Daniela Corno.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Who Is Your Lawyer?

Posted on: July 13th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke about the importance of your lawyer representing you.

Hey, folks. It’s Shawn here with you asking a very important question. Who is your lawyer? Some people think it’s very simple. It’s the person I pick up the phone and call. But you need to understand who that lawyer is in a business context that can get a little cloudy because lawyers have different roles.

Some lawyers represent the business and some lawyers represent the business owner and there can be a key distinction here. If you get into a corporate situation where you have a problem, you need to understand whether that lawyer is working for you or working for the company. Now, a good lawyer will make sure they explain it to you but sometimes in the confusion and hustle and bustle, there can be a lost message there. So you want to be very clear. Maybe ask the question, who does your lawyer work for? Certainly, a good, ethical lawyer is going to tell you who they work for. You need to understand whether that lawyer is looking out for you or looking out for the business.

Where does this get important? This gets important when you have corporate problems when you have something going on in the company. We need to understand whether the lawyer is working for one of the people or working for everybody, whether they’re looking out for the company or whether they’re looking out for the individual owner. Very important because that’s going to change how the lawyer’s strategy is and what questions they’re going to ask and who they’re defending because lawyers are essentially fiduciaries. We are trustees working for our clients and we got to do what’s best for our clients.

So you want to know who that lawyer is working for and in a partnership situation it gets very sensitive because each partner generally has different economic needs and wants, but then you have a combined partnership. So is that lawyer working for everybody or working for one of the individual partners? You need to ask those questions you need to know. So who is your lawyer and who is that lawyer who you’re talking to looking out for? Ask these questions. Find the answers. Know and make a plan.

You may need your own lawyer. Sometimes it’s advisable, particularly for partners in a partnership, for each of them to have their own lawyers.

If these issues are resonating with you, it’s something you want to learn some more about, check out the McBride Attorney’s blog and the McBride for Business blog. Subscribe to our Youtube channel, McBride for Business and like the R. Shawn McBride public page on Facebook where we built a community around this and I bring you lots of great videos with information like this.

I want to know how I can help you beyond just getting that business evaluation checklist at McBride for Business which you should definitely get. How else can I help you? What are you dealing with, what issues? Let me know. I work with people one-on-one. I answer some informal questions by video that apply to great large audiences and I also keynote and do training. So there’s some way I can probably help you. Let me know how we can work together. Reach out. Say hi. Let me know what’s going on in your world and let’s take it from there. R. Shawn McBride signing off. I will talk with you very soon.

Make sure you download our free checklist to assess your business.  

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Ear_Candy.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

Check us out on the web.

Get Shawn’s latest book.

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook.

Building Companies That Stand the Test of Time

Posted on: July 13th, 2017 by R. Shawn McBride No Comments

It’s my catchphrase, and it’s a great idea: Build companies that stand the test of time.

But what does it mean?

How do we build companies that are more? It starts with a solid understanding of where we are and where we want to be in the future. If we don’t have a clear vision for the future, we’re going to have a difficult time making a company last. The first step is to understand what needs to be done with the business. Then we can start working on tactical steps to make a worthwhile, strong company that can stand the test of time. Here are some keys to consider when your goal is to build a company that stands the test of time.

#1. What do the owner or the control parties of the company want for the business long-term? Is this a family project with a goal to transition it to the children or other loved ones? Is the company set up to provide for the welfare of the spouse if the owner dies? Do they want to build a company that services others and takes care of its employees for the long-term? Each of these goals has special demands and desires, and each of these can be serviced in different ways.

#2. What is the owner’s exit plan? We need to know how the owner plans to leave. Is it an orderly sale? Will it be a transition? Either way is acceptable, but the required planning is different.

#3. How do we make the business bigger than the owner? How do we make the business stand separately from its owner or control parties so that it will live on and on and on? It takes a lot of work. We need to take the company to where it transcends time and loves itself regardless of what’s happening to the owner or the other internal parties. The business needs to be bigger and have its identity.

There is a lot of economic value to be captured in building companies that stand the test of time. But that requires hard work and investment — before the problems happen — so that the company is there and ready to expand.

Make sure you download our free checklist to assess your business.  

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Debbie Schiel.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

 

Check us out on the web.

Get Shawn’s latest book.

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook.

 

 

 

 

Setting Up a Good Partnership Agreement

Posted on: July 12th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke about setting up a good partnership agreement, early on.

Hey, folks, it’s Shawn with you. And I want to talk to you about something that is very important for most businesses. It’s setting up a good partnership agreement. If you have more than one partner involved, you need a good partnership agreement and it starts with building a foundation. Foundation of trust, but also a foundation of understanding.

What we find is a lot of times partners don’t have a foundation of understanding. They are going different directions, they have different thoughts and ideas about the business. We want to get things in writing. Before you even talk to a lawyer – because a lawyer’s probably a necessary part of forming a good partnership agreement that’s solid and legally enforceable. Before we even get to that point, let’s have a meeting, let’s have the partners get together, let’s have a clear understanding of what each thinks the other’s going to do and how the business is going to progress. You do this, I do that, this is how we divide the profits and economics, this is what’s going to happen if we deal with one of the four Ds. Death, disability, divorce, disagreement. We need to have a plan for each of the four Ds built in early. So we wanna know where we’re going. Once we have that, we have the foundation.

Now we go to the lawyer and we really document it. We make sure we say this is what we’re trying to do, let’s pool all the pieces together and really make it work. These are important agreements and you know they sit on the sidelines for a long time until there’s a problem.

Unfortunately, most of my clients are the people that have seen somebody gets burned or have done this before. A lot of the people that haven’t been burned before don’t go out and proactively deal with this. The people that get it, get it. They see how bad it can be if a partnership falls apart. Partnerships are great, you can unlock tons of economic value. We have lots of huge organization in the economy that were founded on partnerships. There’s nothing wrong with partnerships. They have to have that clear understanding of foundation. If they don’t, you can knock the whole organization apart. We really want to get these things done right. Go out, build a foundation, have an understanding, go to your lawyer, get it documented the right way, build it the right way first.

If this is resonating with you, check out the McBride for Business Blog and the McBride Attorney’s Blog. You’ll find some great content there about these and other issues.

The McBride for Business YouTube channel also has a lot of great information and the R. Shawn McBride public page on Facebook is a community with lots of videos and content to help business owners. Trying to help people get this stuff right from the beginning and wanting to avoid issues before they happen. So check us out. Get your business evaluation checklist and let me know how I can help you. Reach out with your questions, let me know what I can do for you. Let me know if your organization needs coaching, consulting, a speaker, or training. I would love to dive into these issues and get them right from the beginning rather than deal with them on the back end. Save a lot of money, do great things. R. Shawn McBride signing off.

Make sure you download our free checklist to assess your business.  

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Bob Smith.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

 

Check us out on the web.

Get Shawn’s latest book.

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook.

Your Business Can’t Depend on Your Spouse

Posted on: July 12th, 2017 by R. Shawn McBride No Comments

Continuity plans are a passion of mine.

My speeches often revolve around how to make companies stand the test of time. I want successful private business owners to be able (if they want) to transition that wealth and value to their families and loved ones. And one thing is clear: If something happens to you the business owner, don’t expect your spouse to step in to fill your shoes.

You need a more robust plan. Each of us has unique things we do well and things we do differently. What one spouse brings to the table usually is not the same as the other spouse. Therefore, expect a skill gap if a spouse has to take over for the business owner.

The plan must designate someone to step in to be an executive and take control in the owner’s absence. While the business owner may have been very comfortable in that role, the other spouse who may have been in the background may prefer not to take on the responsibility.

We need plans that will do more. That means we typically establish a broader management structure such as a board of directors or officers to provide checks and balances, and clear continuity for the business. Otherwise, employees may not be willing to stick around, and much of the value of the business may be lost.

This goes beyond just having an estate plan to transfer ownership interests from one spouse to the other, or from a spouse to children. It is also about having a strong, comprehensive management structure to help the business continue. Having the spouse involved in the business in some ancillary role is usually not going to be enough to get the business where it wants to get.

What’s your experience with this? Have you seen businesses exposed to this risk? How have they dealt with it? Join us in the comments below and let us know your thoughts and experience.

Make sure you download our free checklist to assess your business.  

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Kerbstone.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

Check us out on the web.

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook.

 

 

 

 

 

Will You Need Money in the Future? Why to Start Your Banker Relationship Now

Posted on: July 11th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke with Jeff Laceky, a banker in Dallas, about the importance of finding a banker sooner rather than later.

R. Shawn McBride: Hey, everyone, R. Shawn McBride here with you. Meeting with my friend Jeff Laceky and we’re gonna be talking some about establishing a relationship with a banker. A lot of times companies come to me and they need money, they want to get a capital infusion, they want to do something to grow and they don’t have those relationships there and it can really stall things out so we’re gonna talk some today about why that’s beneficial. Jeff, why don’t you give people a little background about who you are and what you’ve done and your experience?

Jeff: Well good morning Shawn, thank you, I appreciate the opportunity. I’m a 30 plus year banker here in Dallas, Texas and I have been in all phases of banking. From bank regulation, through retail and commercial lending, private wealth management, and my current focus is on helping commercial clients grow their business safely and intelligently. And without having that conversation with your banker about where you’re going and what you need to get there, he’s not going to be prepared to really support you in that effort. So it is critical that clients converse and communicate with their banker consistently so that he’s aware and can be prepared.

R. Shawn McBride: Yeah, and you’re talking about talking well in advance of the actual need, right? So you’re gonna want to develop the relationship over time, rather than wait until you have a financing need or emergency.

Jeff: That’s correct. Many times, entrepreneurs especially, are going to be businessmen or women who don’t really fit in that box of safety that banks prefer, so you have to be prepared and know your client, have those conversations with your credit partners inside the bank about why this is a safe investment for the bank to make and why the issues that may be outside the box are mitigated safely so that you can put the vehicle in place that really fits the need.

R. Shawn McBride: Right. And you’re really, you’re actually talking, the banker, in many cases, is almost your inside sales agent. I mean, they’ve got levels above them and you wanna build that relationship so the banker can then go back to the credit committee and say, I’ve known this company for this long, I’ve watched them progress, I think the CEO, you know, always returns my calls, they’re stable, and therefore I think we can possibly do a loan with them and this is why.

Jeff: Absolutely. Without, bankers these days have no loan authority on their own, so they have credit teams that they have to work within the bank to put these in place, especially as the needs get larger.

R. Shawn McBride: Yep.

Jeff: So yes, you’ve gotta, the banker is the advocate for the client inside the bank and details and history matter.

R. Shawn McBride: Exactly. So you absolutely want to be able to build that history. So when you’re meeting with clients now or potential clients now that you might be working with two, three, years from now, you’re building that relationship so that you can then tell that story to your committee and you can say this is why we really know them, this is why they’re a safer risk than what they look like on paper.

Jeff: That’s correct. And your client is expecting, because he’s built that relationship, the response is gonna be timely and accurate and doesn’t slow him down. The other piece to that is you’ve got, not only your credit committee inside your bank, you’ve got external regulators.

R. Shawn McBride: Yep.

Jeff: Most banks have at least three external regulators that question the reasoning behind investing depositors monies in loans outside the bank. And you’ve gotta have those covered and covered well.

R. Shawn McBride: So you have to have two layers of protection. You not only gotta get through the credit committee, but then you’re gonna have these outside influences that are gonna have to be justified too, so you really need to have a really good package of why this loan makes sense.

Jeff: Exactly. Yes.

R. Shawn McBride: So even if you trust the borrower, it’s about showing that trust to other people.

Jeff: That’s right. And your client, if you’ve built the relationship as a trusted advisor with that client, you’re gonna know the nuances and the intent that matter in today’s world and so my bank is a relationship based bank that has been around 150 years and we’ve got those stories, some of our borrowers are very unique and do really unique things.

R. Shawn McBride: Yep.

Jeff: And the bank that doesn’t have a history isn’t gonna touch those opportunities whereas we’ve understood them, been with them, and we’ve built a relationship.

R. Shawn McBride: Yeah, it’s almost a little counterintuitive here, right? You know you want to be talking to people well before they have the need. You’re not waiting until the moment of, oh my god I need a loan now, you want to have that history so that you walk in there. At what point is it a good time for somebody to kind of start that relationship with a banker?

Jeff: The day they go in, well, before they go into business, but as soon as you are a business and you have to have a bank to facilitate cash management.

R. Shawn McBride: Right.

Jeff: You need to have that relationship no matter what level your company is.

R. Shawn McBride: Yeah.

Jeff: And in some senses, that entrepreneur needs it even more because many times those guys are so thin on capital that the banker has to be aware of what the plan is and why they can do certain things.

R. Shawn McBride: Yeah and you know, I talk a lot when I do my 3 Laws of Empowerment speech, where I talk to groups, I talk about these ten-year visions. And knowing where you’re going and I think it’s fairly rare for a real business to have a ten-year vision, it isn’t going to involve some investment in itself, and a lot of times that means borrowing.

Jeff: Right. And capital, it’s all about capital, in many cases for growth. You cannot grow without capital. So, at certain phases of a business’ life, you’re gonna need more or less capital and you have to be prepared for those and it just takes planning because banks do bank risk.

R. Shawn McBride: Right.

Jeff: They don’t do capital risk, they don’t do equity risk, they do bank risk. And so you have to have the right phase in the right place.

R. Shawn McBride: Yep. And you and I are big about knowing people over a long period of time and really getting deep into their business. Tell me what a client relationship looks like when someone is working with someone like yourself? How does it normally progress, how often are you meeting with people, and how are you working through the process of knowing what’s going on in their business?

Jeff: Great question. And the answer is, it’s a balance of being connected to the client, being in front of the client, making sure the client knows you’re available. Many times an entrepreneur is so busy getting cash and building the business that he or she won’t take the time to have those conversations. But I always make it clear to my clients, I’m willing to invest as much time as they are willing to invest to make sure they’re safe. So, a heavy commercial client with a lot of reporting sees me on a quarterly basis at a minimum, got other clients that I see once a year because they just have no needs that are immediate.

R. Shawn McBride: Right.

Jeff: We’re long-range planning. And Shawn, I would say that at heart, bankers are risk managers.

R. Shawn McBride: Sure.

Jeff: They manage all day long, and so as a trusted advisor for a client, you need to be helping him or her manage the risk in the business and, as we both know, family dynamics overflow into a business every day.

R. Shawn McBride: Absolutely.

Jeff: The deeper you know clients life.

R. Shawn McBride: Yes.

Jeff: And how that family life impacts the business, you’re able to help give them points of risk to consider so that they can look at their other trusted advisors and get a consensus on the smartest plan.

R. Shawn McBride: Yeah. And there’s a lot to be said for that – this comprehensive planning. And that kind of goes to the early point we were talking about, building this relationship early with your banker because I know you from working with clients together. You do a pretty amazing job of getting in there and fully understanding their business, and you’re assessing risk points, and I’m guessing you’re helping take a lot of risk off the table that wouldn’t, you know so this client you meet early in the process, when they go to apply for a loan, many of those risks have already been dealt with, so they look a lot better to your credit committee.

Jeff: They do. And clients don’t have the training I have. They run a business. They know what they’re doing.

R. Shawn McBride: Yes.

Jeff: And so the experiences I’ve had over 30 years of where things have gone wrong for other clients and unexpected risk points have pop up that truly throw things off track.

R. Shawn McBride: Sure.

Jeff: The more we pick those early on, the less chance they have to derail a business plan. It just has to start early and be consistent and if your banker’s not calling you, you need to call your banker.

R. Shawn McBride: Yeah and I think that’s true of a lot of bankers, you know, you go, you open your business, you set up a bank account and you go to the banks to deposit stuff and you write checks and you don’t hear anything else.

Jeff: That’s right. Unless something goes wrong.

R. Shawn McBride: Yes.

Jeff: And it would be too late. So, it’s a really fulfilling process to be proactive with a client and make sure that they know you’re thinking about them not just when there’s a problem or not just when you need to hit some numbers.

R. Shawn McBride: Right. And just, so what types of things have you done for clients that have been outside the box? I mean, what have you done over the years that’s been unusual or different?

Jeff: There have been a few. And so, I have a client who’s a widow. And she was widowed early and was surprised about that and wasn’t prepared and so I was able to bring in some legal help and some practical home care help, because I knew these people and all the sudden all her solutions were in place with trusted persons or companies that were addressing those needs and she was just overwhelmed with.

R. Shawn McBride: Yeah.

Jeff: I had one lady who was a client who was . . . her home was broken into and she was pretty concerned about personal safety.

R. Shawn McBride: Yep.

Jeff: And I was able to help her with a home defense and personal safety expert who within a week had her completely feeling secure in her home and empowered to take care of herself.

R. Shawn McBride: Yeah.

Jeff: You know, if you’ve built a network of resources you can find an answer for anything.

R. Shawn McBride: Right, exactly. So, you know, you’re looking at more comprehensively and from a client benefit standpoint, you know, you’re, I know the way you work, you’re gonna be working to position people for a loan well before they need the loan so that when the time comes for that you’ll get them there.

Jeff: That’s correct. And we look at a balance sheet, personal and corporate, and we make sure that we’re doing the right things for that future need.

R. Shawn McBride: Yep.

Jeff: And, I explain to them why certain practices they may be having in their business might work against them in the future. At the end of the day, it’s his or her decision.

R. Shawn McBride: Sure.

Jeff: I just give them good advice.

R. Shawn McBride: Yes. It’s about information for the business owners. So, it’s a core point, I think, business owners need to think about their banking relationship very early. Most people don’t think about it until they kind of get out of the box, they’re growing, they’re doing something and they’re like oh, I need a loan to buy whatever they want to buy, and a lot of times that’s a little bit too late, it’s gonna be a much slower process.

Jeff: That’s correct and I would say that with, especially with the larger banks, many of the bankers don’t have the time that banker to really need to be that engaged, I think a client need to expect a banker to do more than just sit back and wait for a phone call.

R. Shawn McBride: Yes.

Jeff: And they need to reach out and let that banker know, here’s what I need and here’s what you should be doing.

R. Shawn McBride: Yep. Absolutely. I think that makes perfect sense. So, I just want to kind of get that message out to folks, get people thinking a little broader, think earlier. You know, I know you do a great service with your clients, Jeff. How do people get a hold of you if somebody’s listening to this and they’re saying yeah, I really want to start building a relationship with my banker?

Jeff: I appreciate that. My direct line is 214-515-4819. And I am at Frost Bank, in Dallas. At jeff.laceky@frostbank.com, that’ll find me. And I’m always willing to take a call and field questions and talk about what’s possible.

R. Shawn McBride: Yeah, definitely. So if you’re there and you’re listening to Jeff, he’s really relationship oriented, that’s something you need to do. Feel free to reach out, Jeff, I know he will talk to you and give you some ideas and really start pointing you in the right direction for the long-term. It can be very valuable for what you’re doing. So, feel free to reach out. I hope that expanded peoples thinking a little bit, think a little more about relationship oriented and what you can do. If you have specific questions on banking and banking process, let me know. We’d love to do some future content. And I can probably get Jeff back on here again. Or we’ll do something else. So, R. Shawn McBride signing off. I will talk with you very soon.

Make sure you download our free checklist to assess your business.  

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer jenny Rollo.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

 

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