- open for business -
Turn ambition into action
Taking the first steps in starting a business is intimidating and overwhelming. Entrepreneurs need proper resources and support to gain enough confidence to get their business off the ground.
Meet Gretta
Gretta is the owner of Perfect Stitch, a small organic clothing brand that she runs part-time out of her garage.
Perfect Stitch Business Profile
Trading: 1.5 years Revenue: $35,000 per annum, but growing quickly Full-time employees: 0 official employees, but taking advantage of help from friends and family Assets: Stock filling her garage and spare room, and her website
After creating a website and investing in some social media promotions, Gretta has begun seeing sales outside of her own network gradually increase.
With this momentum, Gretta starts to explore formalizing the business. She gets stuck early on, with more questions than when she started, even after extensive internet research. There’s a lot of advice out there, but nothing is specific or personalized enough for Gretta to confidently act on. At this point, Gretta needs help setting up her business for a healthy financial future, with basic business advice from a trusted professional. Setting up an LLC and opening a business bank account will keep her personal finances separate and her liabilities limited. She can start to monitor revenue, profit, and loss while ensuring that she can pay her taxes at regular intervals. Gretta will also need to understand the pros and cons of getting a loan or opening a line of credit. The legal aspects of forming a business can be difficult to interpret, so she’ll need advice to make sure she’s checking all the boxes and doesn’t run into trouble later. But who can provide these services, and how will Gretta navigate the multiple providers?
Thirty-eight percent of startups fail because they run out of cash, and nearly one-fifth (19%) say they failed because of a flawed business model.
—CB Insights
Thirty-three percent of small business owners report that their greatest issue is a lack of capital.
—Guidant Financial
What the bank can do:
At this crucial stage, banks can empower a culture of entrepreneurship to support SMEs, sowing and supporting the belief that running a business will ultimately be rewarding. Banks can boost new business owners’ confidence by focusing on services that allow for mentorship and financial education, supporting their business plans, and helping them select the best fitting financial products. Whether they are starting at $0 or have thousands under their belt, SMEs should be treated as VIP guests by the bank, both virtually and in branches. Banks that seize the opportunity to establish relationships early on can speak to the emotional aspects of running a business, beyond the transactional. This starts by being an empathetic sounding board that offers advice and financial support for anxious but excited entrepreneurs.
A bank can offer Gretta:
In-branch and digital access to a dedicated relationship manager
Mentorship communities to help develop her business acumen while building relationships with other business owners
Classes and/or workshops to help educate her across a variety of topics such as:
- Business finance literacy
- Getting a business started
- Steps to success
"[The bank] referred us to a general service desk and it was difficult to find someone to talk to about our business."
—Financial Controller, Media and Marketing Scaleup, U.K.
"The loans are having a positive impact in the wider community. They mean that employees can keep up with mortgage payments, pay their utilities, and purchase key amenities. Our work with Temenos meant that when local businesses needed us, we delivered."
—Kelly Dakin, Chief Digital and Customer Experience Officer, Atlantic Union Bank
Success Story:
Atlantic Union Bank
Unprecedented Support for Small Businesses During Unprecedented Times
When the COVID-19 pandemic struck, Atlantic Union Bank was quick to see the financial and logistical impact on small businesses. While the U.S. Small Business Administration (SBA) created the Payment Protection Program (PPP) to provide forgivable loans, which could be accessed through a financial service provider, there was a catch. Banks and credit unions were given just four days to get ready to start accepting loan applications. Atlantic Union Bank had to work against the clock to create an online loan application experience that matched the high-quality, personalized experiences that they traditionally delivered in their branches. To get their online portal up and running, Atlantic Union Bank contacted Temenos, who helped them develop an SME-friendly digital workflow. Within four days, the application portal was ready to go live. The process was designed to be as easy as possible for overwhelmed small business owners, who could simply enter responses to loan eligibility questions, with features built in to minimize error and ease decision-making. Atlantic Union Bank was one of only 54 financial institutions in the entire U.S. Consumer Bankers Association that was able to accept PPP loan applications on time, going on to receive 6,500 applications and $1.14 billion in funds for small businesses within the first few weeks. The collaboration with Temenos enabled the bank to bring vital financial support to local communities, with an estimated 11,600 loans that have helped between 40,000 to 50,000 employees overall.