Are you ready to start your Profit First journey? We’re to guide you through the crucial steps of opening your Profit First bank accounts. In this blog post, we’ll help you navigate the process with ease and confidence. Opening these accounts is a pivotal moment for your financial success, and we understand the apprehensions that come with it. Let’s break it down into three simple steps.
Step 1: Choosing the Right Bank or Credit Union
When it comes to selecting the right bank for your Profit First accounts, you may already have one in mind. However, it’s essential to evaluate your options carefully. We highly recommend credit unions for several reasons. Unlike major banks such as Bank of America or Chase, credit unions offer more flexibility and fewer restrictions on business accounts. These big banks often apply strict rules, like mandatory debit card usage and minimum average balances, which can be challenging, especially for new businesses.
Additionally, major banks tend to tack on fees when you mention a business account. It’s a costly proposition that you want to avoid. Maintaining a clear separation between personal and business finances is crucial for proper accounting and IRS compliance. Using your personal account for business transactions to avoid fees can lead to messy financial records and potential complications during an audit. Therefore, think about choosing a different bank specifically for your business accounts.
Step 2: Negotiating Fees and Building Relationships
Now, let’s address a concern many of you might face: fees associated with your chosen bank. If you’re leaning towards a credit union, you’re in luck, as most credit unions typically do not impose fees. However, if you’re attached to your current bank or credit union and they normally charge fees for business accounts, don’t worry. You can negotiate with them, just as I did with my personal Profit First account.
I spoke with a branch manager at Regions, a major bank, who was enthusiastic about the Profit First concept. However, Regions had a system in place that incurred a $15 charge on every wire I received. That was a significant barrier. But here’s the catch – the branch manager was willing to go above and beyond to accommodate my needs. He personally took the initiative to reverse the charge every few months, ensuring that I could still benefit from the Profit First system without unnecessary fees. This kind of service-oriented approach can make all the difference in your banking experience.
The key takeaway here is to never hesitate when it comes to negotiating fees with your bank. Remember, they want your business, and you have the leverage to walk away if they’re unwilling to accommodate your Profit First needs. If you encounter resistance or skeptical looks from bank employees, don’t be discouraged. Bring along your Profit First book and educate them about the system’s success. Over 300,000 businesses worldwide have embraced this method, and sharing this statistic can help your bank understand the significance of your request. If all else fails, request a meeting with the branch manager, as they often have the authority to override fees, just as in my case.
Step 3: Simplifying the Account Opening Process
Finally, let’s make the account-opening process quick and easy. After all, your time is precious, and you want to get started with Profit First as soon as possible. The most time-consuming part of opening an account is typically the paperwork. To expedite this step, call ahead to your chosen bank or credit union and request that they prepare the necessary paperwork in advance.
This proactive approach can significantly reduce the time spent at the bank. Some banks, especially smaller ones, are even willing to go the extra mile by preparing the paperwork and coming to your place of business. It’s all about finding the institution that is flexible and accommodating to your needs. In the midst of the COVID-19 pandemic and quarantine measures, we’ve successfully opened accounts via video conferencing. This innovative approach allowed us to E-sign documents and complete the process without ever setting foot in a physical branch.
Conclusion:
In closing, implementing the Profit First system is a journey that requires a few critical steps. Choosing the right bank or credit union, negotiating fees, and simplifying the account opening process are essential components of this journey. We understand that these steps may seem daunting at first, but they are integral to your financial success. Remember, these banks want your business, and you have the power to make the Profit First system work for you.
Good luck on your Profit First journey! You’re about to experience the thrill of financial wins and watch your business thrive.
How We Can Help
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About Abby Johnson
Abby Johnson, is Matterhorn Business Development’s Chief Mentor, resident organizational genius and Certified Profit First Professional, helping our clients grow and organize their businesses. With a passion for empowering businesses to thrive and extensive experience in helping clients grow their revenue and manage their finances profitability, she’s committed to making a positive impact on your business.
About Greg Winteregg
Greg founded Matterhorn Business Development to assist small business owners in growing their businesses and increasing profitability at the same time.
He was an internationally recognized lecturer, sales trainer, and management consultant who spent close to 30 years working with professionals and small business owners across the US and Canada.
In 2019, he authored his book “Fun at Work.”
