Managing a Small Business Made Easy by Martin Davis

Author:Martin Davis [Martin Davis]
Language: eng
Format: epub
Published: 2013-05-09T18:36:00+00:00

good banker will want to know the key personnel in your company, their role in the business, and the extent of their experience.

5. Understanding your people. A good banker will want to know the key personnel in your company, their role in the business, and the extent of their experience. He will especially want to know your partners and stockholders, their backgrounds, and the levels of their financial commitment to the business. If you have a labor union, he will want to understand your union agreement and the status of your relationship with the key union officials. He will likely want to know how you procure key personnel, whether in sales, manufacturing, engineering, or marketing, and their skill levels.

6. Understanding your banking needs. A good banker will want to understand why you need to borrow money, how much, and for how long. He will want to know how you intend to repay the loan, what you intend to provide as collateral, and, quite often, your willingness to personally guarantee the loan. Equally important, he will want to understand the risk and the downside to the loan arrangement. He will advise you of the loan covenants that the bank will require and determine how willing you are to live with those covenants.

Of course, all of the understandings set forth above are facilitated with a properly prepared business plan. However, a good banker will want to come to your business and clearly understand the factors that are important to your success. These criteria may help you to answer the important question, "How good is your banker?"

The two bankers referred to earlier embodied all of these understandings and became very involved in the business. They shared in the good accomplishments and understood the hard times because they had these understandings up front. When times became tenuous, they did not back away from the issues and hide behind their loan agreement. They stepped up and helped the businesses weather the storms. They were good bankers. You will need one of these!

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.