Banking and Finance
Looking forward
How you can prepare your business for 2010
Smart Business Columbus | November 2009
Page 1 of 2
Sue Zazon, President, CEO, FirstMerit Bank
For all intents and purposes, 2009 was the most challenging year for business owners since the Great Depression. The changes that occurred in the financial service industry were of historic proportions — with more to follow on the regulatory front.
The severe economic downturn almost took “growth” out of the business vocabulary, attempting to replace it with “shrink.” Most companies suffered from declining sales, and in some cases and industries, the declines were as much as 40 to 50 percent. Consequently, businesses did have to learn how to adapt as they faced these extreme challenges.
“Last year, I said: ‘the more reliant you are on a bank for capital, the more you need to be in contact with your banker,’ and this turned out to be an absolute truth,” says Sue Zazon, president and CEO of FirstMerit Bank’s Columbus region. “Given the challenges to banks and their customers, both parties needed to be in contact with each other.”
As always, your banker should initiate thoughtful conversations with you about the goals and needs of your business in the upcoming year. Those conversations may not take on the same tone as when the economy is booming and growth needs to be fueled by bank financing.
Smart Business spoke with Zazon about how business owners should approach 2010, while including their banker in the process.
What should a banker be able to do for your business?
Each company’s needs continue to be different and may include more dynamic or uncertain variables than ever before. Let your banker be part of your team as you shape your plan.
Here are a few suggestions:
- Brainstorm your 2010 business plan. Your banker can refer you to resources to help you if you don’t have a tried and true process to develop a plan.
- If you do have a plan, let your banker play the devil’s advocate. Your banker has seen a lot and learned a lot over the past year, so use this knowledge and experience to your benefit. Allowing your banker to identify gaps or holes will make your business plan stronger. Also, now more than ever, have a Plan B. 2009 was tumultuous, and 2010 is shaping up as an enigma. Don’t be caught unarmed when things don’t go as planned. Let your banker challenge your assumptions to your plan and ask: ‘What if?’
What should a business owner look for in a banker?
I have found that the old credo of ‘business owners do business with individuals they know, like and trust’ is exceptionally true in this environment. During less challenging times, some bank and banker qualities and services are taken for granted. When times are challenging and rapidly changing, you want a reliable partner who is a good counselor as well as a good business person in their own right. Business owners should identify what qualities or services are important to their needs and businesses.
