Your bank is a key component in running your business. Choosing a banking solution is one of the most important decisions you need to make as a startup. Your bank is more than just a place to store your money, it’s a tool to help you to minimize your financial risks and to manage your cash flow.
Your work isn’t done once you’ve selecting your banking solution, it’s only beginning. You need to closely manage your banking to maximize the advantages and to avoid putting your company at risk.
A common mistake by startups is not choosing the right banking partner. If you’re a startup, you want to select a bank that has a strong focus and understanding of the needs of early-stage companies. Your bank will be your business partner, part of your invaluable ecosystem. Make sure you’re finding the right partner.
MaGIC is partnering with Maybank to help eligible startups in Malaysia to open a bank account.
There are various other banking issues that startups get themselves into trouble with including small mistakes as postdating checks, up to larger issues of financial strategy such as pursuing yield at the expense of liquidity or capital preservation.
As with any business relationship, it’s your responsibility to proactively manage your affairs. Banking is no exception. Managing your accounts properly will give you greater insight into your finances, greater control over your startup, and greater financial protection.