Blog: C is for Communication —

Communication is something everyone agrees is important within your organization, but have you considered the importance of your own communication with your business advisors and lenders? Letter A of this blog series described the importance of business agility. Communication with your advisors and lenders is also a key factor to running an agile company. An owner/executive may begin with a performance letter, a letter you could share with your banker or lender. At a minimum the letter should be prepared quarterly with the intent to memorialize and communicate the company’s recent activities including financial status and reasons behind changes, any major incidents or opportunities, expansions, significant won or lost customers, etc. Preparing the performance letter will:

1) Force you to take time and reflect on the past quarter
2) Plan and or adjust for the next quarter
3) Create a document that can be shared with business advisors or lenders
4) Provide historical information quickly for reference

Imagine if you were considering expanding through acquisition and an opportunity presents itself, you will be in a much better position to move quickly if you have been having conversations with your lender about your future goals and sharing your performance letter with them. There will be no surprises. You may be surprised how often you go back and review these performance letters yourself.