Here at the Ohio SBDC the primary reason people come through our doors is that they are looking for money. They may not always really need money but that is why they take the initiative to meet with us in the first place. One of the primary tasks that we perform for those looking for money is to educate them on the process. We need to get the entrepreneur to put themselves in the shoes of the person they are approaching for financing, whether that is a banker or an investor. I often talk about turning your idea into a deal (see the title of this site). Don't talk about what is in it for you but what is in it for the investor. Why should they put their money into your business? How will you be able to execute and build a business that will allow them to not only get their money back but also a SIGNIFICANT return? It is the same with bankers with one difference...How will you be able to execute and build a business that will allow the bank to be repaid and make the lender look good? For a banker you need to make this very clear so they will take your plan forward, fight for it and get your loan approved. The video below features Randy Morgan, SBDC consultant in Licking County/Newark. One of the key things he says in the video is "The banking world and our (entrepreneurs) world are two different animals" This is so true. Entrepreneurs are about passion and putting themselves on the line to make their business succeed. Banks are conservative and very risk averse. You have to prepare and speak their language. Randy discusses how to do that and provides tips to allow you successfully obtain a loan.
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