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BusinessWeek
Online reporter Erin Chambers recently spoke with Rebecca Macieira-Kaufmann
of Wells Fargo, America's top small-biz lender, and asked her to share the
top five things she looks for as a lender -- and why small-business owners
in search of capital should keep them in mind over the next year. Here
are Kaufman's tips:
1.
Small-business owners should be personally in the game. Stay close to
your customers and markets. As a large business focusing on small business,
we want to feel connected as a financial-service provider to our customers.
To survive and thrive in 2005, we sponsor industry research to get at what's
on our customers' minds. Small businesses can do that too, by getting out
and talking to customers, assessing their needs, figuring out where they're
going.
2.
Keep people in mind. For small-business owners, it's critical to hire
and retain good people who are focused employees. We know this is one of
their biggest challenges, but hanging on to your best people is critical.
Focus on new ways to attract and retain qualified employees. We believe
people are a competitive advantage, and from our research, this is an area
small-business owners find challenging year in and year out. Keep at it.
3.
Always keep profitability and cash flow in mind. Cash flow is king, and
those who manage it carefully succeed in long run. Small-business owners are
very optimistic about future, and I would say that they are particularly
optimistic about cash flow. But they need to continually monitor their
business plan to focus on sales and keep up the cash flow. At Wells Fargo,
small business is big business for us. It's profitable for us. So we're
doing the same thing.
4.
Be proactive. One of the things we've seen from successful
small-business owners is that they meet more people and are proactive in
meeting and discussing their individual needs with their banker. Go to your
banker and have a conversation. Also reach out to your network of peers,
industry specialists, or local chamber of commerce. Just get out there. It's
all about relationship-building.
5.
Lastly, persevere. It's a very common notion among entrepreneurs, but
it's good to be reminded. We talk to a lot of small-business owners on a
daily basis, and a common theme is that they persevere. They maintain
financial flexibility and that entrepreneurial spirit no matter the
conditions. They are agile and flexible, and they stay the course. That's
what keeps us excited about and committed to small business.
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