Small business owners, especially new business owners, rarely take the time to find a bank that can meet their growing needs. In today's competitive environment a great banking relationship can be a key to a profitable business.

Small business is becoming more highly valued by today's bankers who recognize that small-business owners create new jobs and products at a faster rate than Fortune 500 companies.

In Napa, this is no exception. We are fortunate to have community-focused banks that are dedicated to our local small businesses.

The fact that 85 percent of businesses in this county are considered small helps with this focus.

As a small-business owner you can take advantage of this by using local financial institutions' focus on small business to craft a personalized, banking relationship that works to grow your business.

When shopping for bank, remember that the relationship is with the banker, or the development officer and not the bank. That is why it is important to get to know your business development officer and also their supervisor and other key staff in the bank.

This helps with the continuity of your banking relationship.

When looking for a banker it is also important to establish trust with the banker and for the banker to acknowledge the challenges of running your specific small business.

Encourage your banker to get to know about your business by inviting the banker to your business site. He will be better equipped to help plan for growth and also could become your biggest fan.

If you are just getting your business off the ground, start by comparing bank services and products. Even if you don't need specific services now, you may need a bank with extensive products and services as you grow.

Many startup businesses tend to focus on the initial issues at hand: setting up a business checking account and a merchant account.

Unfortunately, they tend to choose their bank by price alone. Price doesn't change much from bank-to-bank. Think about the customer service you are getting, instead.

Once you establish a relationship, you may be able to negotiate fees and charges. But don't count on it in the beginning.

The National Minority Business Development Agency recommends reviewing financial institutions' accessibility, flexibility, range of services, size of resources, the ability to show balanced credit decisions, the ability to advise and the bank's commitment to your business and your industry.

* Accessibility and flexibility. Accessibility is especially important when you're talking about business loans. You want to know that your lender will be there for you as your company grows and you need capital assistance. This is particularly important if you are a startup as there are many financial institutions that do not normally lend to businesses that have not shown a positive track record for over two years.

* Range of services. Your financing needs may be relatively easy to satisfy now, but in the future you'll likely need more advanced financing services for challenges like a major expansion. Think about the services you will need in three to five years.

* Sizable resources. A growing business' need for financial support grows as it becomes more successful.

A business owner can't afford to be limited by a lender's size or a lack of understanding about the nature of the business or industry.

This is especially important if your business is interstate and/or plans to develop international commerce.

* Balanced credit decisions. Seek a banker that can provide a balanced credit decision that takes into account your total picture, including all of your business' assets and potential. A lender with an in-depth knowledge of your business can look past temporary aberrations to make informed decisions.

* Ability to advise. Small-business owners need to make decisions about a wide range of issues -- from what financing operations will mean for your business, what kind of retirement plan to offer and what investment options to include, to cash flow management and investment of excess cash.

Your banker needs to be up-to-date on current issues and willing to work with you on the best strategies for your business growth.

* Commitment. You want a lender committed to the small-business market who has a history of providing financing regardless of the economic climate.

Check out the track record of the financial institution and ask for references from other small businesses and review the financial institution's annual report.

Finally make sure the bank and banker is a good fit with your business.

Always think about how a lender's capabilities and resources fit with your business.

Providing and putting business capital to use takes a relationship in which the long-term success of your business is the ultimate goal.

It can be a win-win relationship for you and the banker.

The Napa Valley College SBDC provides many opportunities to develop stronger relationships with bankers.

Join us Wednesday from 7:30 to 9:15 a.m. at the Napa Chamber of Commerce for Wake up Your Business Wednesday Training: Services to Bank On.

The informal training, sponsored by a local bank, will provide information on the services banks have to offer small businesses and strategies for effectively using banking services.

For more information call the NVC SBDC at 253-3210.