Measuring Up to the Banker’s Ideal

Who are these ordinary mortals who slip
through bankers’ fine screens of approval?
And more to the point, how can you
qualify as one of them? Your job is to show
how your situation is similar to the banker’s
A good bet is the person who has
worked for, or preferably managed, a
successful business in the same field as
the proposed new business. For example,
if you have profitably run a clothing store
for an absentee owner for a year or two,
a lender may believe you are ready to do
it on your own. All you need is a good
location, a sound business plan, and a little
capital. Then, watch out Neiman-Marcus!
Further away from a lender’s ideal is
the person who has sound experience
managing one type of business, but
proposes to start one in a different field.
Let’s say you ran the most profitable hot
dog stand in the Squaw Valley ski resort,
and now you want to market computer
software in the Silicon Valley of California.
In your favor is your experience running a
successful business. On the negative side is
the fact that computer software marketing
has no relationship to hot dog selling. In
this situation, you might be able to get a
loan if you hire people who make up for
your lack of experience. At the very least,
you would need someone with a strong
software marketing background, as well as
a person with experience managing retail
sales and service businesses. Naturally,
both of those people are most desirable
if they have many years of successful
experience in the software marketing
business, preferably in California.

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