Many entrepreneurs need funding to start a business or grow their business and these folks often turn to banks for financing. Many times, however, the bank may reject your application. Yes, completing a loan application for your company is just one step in the process of securing your funds. However, actually securing the financing may take more work than you realize.
A banker friend of mine recently referred an aspiring entrepreneurial dentist to meet with me after starting the loan process. This dentist was coming from the corporate world of dentistry and was ready to own his own business. While the dentist had honed his dentistry skills, his business skills were non-existent. This inexperience created a problem. He did not understand the basics of business. He did not have a well-written business plan. Essentially he appeared clueless.
My banker friend was not impressed. The idea of loaning several hundred thousand dollars to this entrepreneurial dentist made the banker quite squeamish. The banker recommended the good doctor hire a financial coach who could help the young dentist understand business, offering a greater chance of success.
This scenario is nothing new to me. In fact, I connect with people on a weekly basis in very similar situations. Most lenders are not eager to loan hundreds of thousands of dollars to a business owner who does not have good, wise counsel. They may have “the best idea since sliced bread”, however, without the knowledge necessary to run a business, securing capital is often tough. Lenders want more than visionaries; they want producers! They want to know the money they are lending will be returned.
That’s why I’m continually harping on the necessity of drafting your own personal “Dream Team.” I highly suggest every business owner, big or small, employ the services of a CERTIFIED FINANCIAL PLANNER™, a good CPA, and a qualified tax attorney. These professionals are there to help make your business a success. While you may not utilize all three of them all the time, each will be necessary at some point in your career. They will consult and counsel you no matter what stage your business is in.
If you are that entrepreneur, or maybe you know one in need of some guidance, I can help you. I’d be happy to connect and work to try to make your business finances Financially Simple™.