START UP: Right from the Start with Royal
RCU business bankers like Blake Willson and Tony Willkom can help small businesses at every stage
“I hear things like ‘I don’t know where to start’ all the time,” says Blake Willson of Royal Credit Union. As business banking officers with Royal, Willson and his colleague Tony Willkom are well-positioned to help entrepreneurs find the starting line and answer their financial questions, whether they are just starting out or are expanding their businesses to meet new opportunities. We asked Willson and Willkom what business owners should know before approaching a financial institution, how to avoid common financial pitfalls, and the advantages of working with a community based institution like Royal Credit Union.
What services does RCU offer to people who are just starting their own businesses?
For new businesses, RCU can help set up your business accounts, online/mobile banking, lending services, and more. We also are happy to provide our time, energy, and knowledge as a trusted advisor.
One of the most important things for someone just starting out is knowing where to get answers to your questions, and those relationships that we’ve built where we’re able to answer questions or point someone in the right direction knowing that they’re getting good advice and learning those next steps are some of the most rewarding aspects of working with startup businesses.
When people take the time to work on understanding the different aspects of getting their new business off the ground, they are that much more informed and engaged with these pieces of their business. We know that not everyone has the experience and knowledge with something like business banking, so that’s where Royal comes in. Even if it’s just a conversation to say, “Here’s what we have, here’s what we would look at to benefit you, here’s another resource for this type of question.” Royal is happy to have those discussions and really get to know your needs and listen to your story.
Before visiting with a financial institution like RCU, what things should entrepreneurs know?
For opening a deposit account like a checking account, you’ll need to make a few decisions before you’re actually ready to open your account. Essentially, you need to create a legal business entity before you can complete the paperwork to open an account. This usually means choosing whether you’re going to run things as a sole proprietor, a partnership, an LLC, or a different business structure. You’ll also want to register your name with your state office. In Wisconsin, that’s the Department of Financial Institutions. This is important because you need to be sure that you aren’t using the same name as an already established business. One of the last steps is to get an Employer Identification Number, or EIN, or else choose to use your own Social Security Number if you’re a sole proprietor. The way you approach these decisions will have a big impact on things like taxes and record keeping for your business, so it’s important to do your homework during this stage of your business journey! Take your time and talk to people and get the answers to your questions about the pros and cons of different paths forward. Once you have your business entity created, that’s when you’re ready to open your business accounts or look for a business loan.
Are there common mistakes that first-time entrepreneurs make that can be easily avoided?
One of the most common mistakes we see when starting out with a business idea is timing. Many entrepreneurs are eager and excited to get going right away, but everything takes time. Setting up a business entity, building out your business plan, and finding a team of trusted advisors all can take weeks, not days. Our advice is to be patient and make sure you really understand your options with each decision you face. Taking more time in the beginning to set yourself up for success in the long run usually pays off.
We’ve all heard the story of the friend who came up with a great idea while sitting around the campfire or scribbled their idea on the back of a napkin and the rest is history, but the part that gets left out is that it took a while for the pieces to fall into place, and it takes a lot of learning to get to the destination. If that business opportunity is truly that time sensitive where you can’t take the time to fully understand how it will work, is it still going to be a good business in the long run? Then think about this same question from the perspective of a lender: If I was a business banker, would I get behind my business and offer financing?
What are the advantages of working with RCU?
Royal has a dedicated team of business bankers focused on helping entrepreneurs and small businesses. You have the opportunity to work with a business banker who specializes in smaller financial relationships and who can provide the answers to a lot of your questions from the lens of a startup or newer business. Business bankers at Royal are also very available – a lot of our time is spent talking to our business Members and getting to know them, we’re always a phone call or email away. This is very different from a one-size-fits-all relationship that you might get somewhere else.
Royal Credit Union
Reach Blake Willson at blake.willson@rcu.org or (715) 855-5450. Reach Tony Willkom at anthony.willkom@rcu.org or (715) 833-8224. Learn more about Royal’s business banking services at rcu.org/business-banking.
