Choosing the right banker is one of the most important parts to starting a small business. Just as you want to develop long-term relationships with your customers, you should look to the right bank for the long haul.

ATMs, technological advances such as Internet banking and new products and services are changing how you use your bank. Ask yourself what you truly need and want from a bank:

1. How often do you write and deposit checks?  2. Do you prefer tellers, ATMs or other forms of contact with your bank?  3. What day and time do you prefer to do your banking?  4. Is your business likely to need a loan in the future?  5. How important are interest rates and service charges?

BANKS HELP GROW YOUR BUSINESS

Know your banker. Ask about the many products and services the bank offers. You can determine what works for you, but first you need to know how many services your bank offers. Because of the new Financial Modernization Law and as technology advances, your banker can probably help you in ways never before considered.

Educate your banker. Teach them about your business. Just as you maintain your records, keep files of studies, news articles and other information that can add to your bottom line. The more background that your bank has on  your business, the better service it may provide you.

It is likely that at least once you will need a business loan. You’ve already made the first smart step developing a long-term relationship. Anticipate short-term needs and talk with your lender long before you actually need a loan. Keeping accurate, professionally prepared financial statements and maintaining your business plan should help in the processing of a loan.

Team with your banker. Today, one of the last places you will find a banker is behind their desk. They are solidifying relationships with long-time customers and developing new accounts. They are active volunteers. Iowa  bankers support their schools and communities. They have joined retired General Colin Powell’s America’s Promise effort to better educate our young people.

Laying The Groundwork. When you seek a loan, you are asking the bank to become a partner in your business. Before entering the market for a loan, you should make sure you’ve done all of the necessary groundwork. Look for the best combination of price, quality and reputation.

THE PLAN

Your First Stop

Your business plan is the single most important document you can prepare.

For a customized business start-up packet, contact the Business License Information Center at IDED at (515) 242-4750 or (800) 532-1216. For assistance writing a business plan, contact the Iowa SBDC at (800) 373-7232.

Structure & Register Your Business

Determine which form of business ownership makes sense for your venture. To register corporations, limited partnerships, limited liability companies, nonprofit corporations, trademarks or service marks, contact the  Iowa Secretary of State at (515) 281-5204.

To register sole proprietorships or simple partnerships, contact your County Recorders Office.

Satisfy Tax Requirements

To comply with state tax laws and ask about tax benefits for small businesses, contact the Iowa Department of Revenue and Finance at (515) 281-3114 or (800) 532-1531.

To comply with federal tax reporting and payment obligations or inquire about federal tax benefits for small business, contact the Internal Revenue Service at (800)829-1040. To obtain a Federal Employer’s Identification Number, call the Kansas City, Mo., IRS Office at (816) 926-5999. For publications, call (800) 829-3676.

To request a business tax kit from the Internal Revenue Service office in Des Moines, call (515) 284-4870.

Satisfy Employee Requirements

The IWorker’s Compensation Division provides information on workers’ compensation, occupational disease and hearing loss laws. Call (515) 281-5934.  The Unemployment Insurance Services Division provides information on job insurance, placement services and training programs. Call (515) 281-5387.

The Labor Services Division provides information on Occupational Safety and Health Administration (OSHA), labor, hazardous chemical, right-to-know and minimum wage statutes, plus inspection of boilers, elevator, and amusement rides, registration of construction contractors, and educational programs. Call (515) 281-3606.

Seek Insurance Protection

Determine the liabilities you will be exposed to and arrange the appropriate insurance protection to cover them.

To optimize your chances of success, along with IDED, you may visit the SBRD website at www.state.ia.us/sbro.

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