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In our last post we discussed the different types of business insurance your startup may need to purchase. Now that you are starting to spend money on your business, its probably a good idea to stop putting your cash under your mattress and open a bank account. When you open a bank account its important that you determine what bank you want to use and to make sure that the bank provides all of the services that your startup needs.
What bank is right for me?
Most banks offer the same services such as online banking, but what is important to keep in mind is the branch and ATM network. If youre the type of entrepreneur that walks from meeting to meeting making regular ATM deposits, you might not want to go with a small credit union with few ATMs. Still, those smaller banks usually have shorter wait times and tend to treat you more as a person than just a person who happens to have an account with them.
More important than the number of ATMs and branches a bank has is the quality of the people who will be taking care of your money. It is important to find a bank and banker that you trust, because it is very likely that you will have questions as time goes on. The last thing you want as a business owner is to not know whats going on with your money, right? So make sure you find a banker who is accessible and attentive, not just someone who wants to win your account. Treat this as a relationship: go out on a few dates and see which one is right for you.
What are my options?
Keep in mind what your average monthly balance will be. Not only will this determine your account type, but it will also decide if you pay any service fees. Some banks also give you great features and benefits if you have a larger than average account balance.
Does my business type play a factor?
In short: yes. Make sure you tell your banker what business type you are as soon as the meeting starts. This will help him or her recognize your account volume and services that you will need.
What steps do I need to take?
- Figure out what bank you want to use (its a good idea to set up a few meetings with different banks before you make your decision).
- Go to the bank or its website.
- Determine what type of account fits your needs.
- Fill an application.
Simple, right? For more quality information like this, make sure you sign up for our RSS feed. In our next post we will go over how to protect your business with trademarks, patents, and copyrights.