Basketball, Family Business, and Opening a Business Bank Account – what do they have in common? Members of a family collectively running a family business are “playing” together as a team. Aside from bonding to make the family ties stronger, like playing hard ball together, they collaborate with each other in pushing their business bonds to reach maximum value. Each member is a key player in scoring positive goals for the business, contributing to the attainment of the much coveted “championship title”, as when the business earns profit exponentially. A good strategy family businesses might want to consider is opening a business bank account to ensure that each family player benefits from the business, simultaneously ensuring that the business is reaching its full potential.
Opening a business bank account, separate and clear-cut from each family member’s personal accounts, would help avoid conflict regarding the percentage of each member’s share. Allotment of shares would be precise and well-regulated if transferred from the business account to each member’s personal accounts. For example, a player would want to buy a high-end MP3 player so he could listen to upbeat music while practicing. It might help him become a better player, but the purchase is more personal than business-related in nature. Having a business bank account will not let the personal expenses indirectly or totally unrelated with business operations affect the business’s revolving cash. Business transactions are for the business, personal purchases are for personal use – keeping them separate on a business account and personal accounts respectively will do away with unnecessary clutter and make the team more focused on the goal. Internal team conflict would arise if members share one account for personal use and business use.
Much like a team’s identity is at stake, a family business’s image could also carry more weight when its transactions are performed through its business bank account. Family members issuing checks using the family business’s name will help solidify the reputation of the business, with good feedback affecting the business’s whole image (and vice versa, so the family members would be made more cautious of their transactions). Clearly recorded transactions also come in handy, just like a good playbook, when it comes to reviewing what the positive dealings that helped bolster the business were and what weren’t. The family business could base its succeeding “game plan” based on its recorded transactions and through the advice of the partnering bank. Opening a business bank account would ensure the provision of services that would make the family business more credible and inviting, and of comprehensible records that would show if the business if is on the right track to the championship.
As in Basketball, it must also be clear on what must be expected from the business, from each player, and from the partnering bank with which they would open a business bank account. Rest assured, the family business, the family members and the bank are all part of the same team in acquiring the championship trophy for “The Most