So the economy is down, everyone is staying home, and we have the nerve to talk to you about building a tangible, structure, operational bank. Before we get started let's take a step bank and understand we're not talking about a monumental financial institution like a Chase, Citibank, or even Municipal credit union. Everyone has to start somewhere. Even the formerly mentioned behemoths, took decades if not centuries to become what they are now.

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This article is about igniting an entrepreneurial spirit that could do wonders for your community.

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Step 1 - Research/Plan - Why do you want to build a bank?

                                         - What will make your bank different?

                                         - Who will be your target borrowers & investments?

                                             - Why should clients want to open an account with you

                                                versus bigger, more traditional banks?

                                             - What will you charge borrowers in interest?

                                         - Think about profit & losses and what it will take to cost

                                            to operate.

                                            - Be realistic in your forecast. How much do you expect to

                                              bring in month to month.

                                         - What will be the Bank's name and logo.

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Step 2 - Be strategic in becoming a legal entity.

                                           - If you haven't won the lottery, and don't have $12 - $20 

                                             Million to spare this won't be a one man 

                                             operation. Which leads us to one of three options.

                                             Corporations, DBA, or our suggestion - LLC. (If you do

                                             have the funds (give us a call - lol) and the

                                             best form for you would be a sole proprietorship.)

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Step 3 - Inform your state and local government.and apply for an EIN.

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Step 4 - Setup a business credit card (or unsecured credit card) with a bigger bank.

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Step 5 - Setup up your team and prepare to offer equity.

                                          - No one works for free, and if you don't have the funds to

                                            keep teammates motivated to work, offering shares and

                                            reminding them this is their bank too.

                                            - Find a partner that can handle:

                                               - accounting.

                                               - legal.

                                               - operations.

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Step 6 - Get the right permits and licenses in order to operate a bank

             

Step 7 - Get FDIC insured

              - The FDIC protects you and your clients.

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Step 8 -  HUSTLE

              - Start a website as an online bank.

              - Start with 1 financial product - Checking accounts!

              - Be clear and concise in what you will charge for checking accounts.

              - Gather funds in exchange for shares in the bank.

              - This isn't going to be easy, but it will show how badly you want this bank

                 to win.

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             - I suggest knocking on doors, stopping people in the street and even going

               as low as a $1 a share to reach start up funds.

         

              - Select an initial investment.

                - Start local, be smart.

                   - An investment you can be sure will succeed.

                     - A barbershop/Salon.

                     - Grocery store.

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Step 9 - Win - If you've reached this point, it's time to grow your banks products 

                         and marketing.

                      - If the local investment is performing well you have the option to

                         grow to the other standard financial product - Saving accounts.

                          - Be competitive in your interest rates to accelerate growth.

                      - Buy ads or use social media to promote your online bank.

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Step 10 - Keep Winning!