Through my time with the military I have had the opportunity to make friends with a lot of people that are in the private sector; many that run their own businesses. Many of these guys are retired military and their business is just private contracting. Picking up a six month job overseas doing the same thing they had done when they were "green suiters". That was not what my plan was, I intended to branch out of the comfort zone of doing what I know and try doing something new, food and beverage start up. There were some good reason for this, some I have already talked about and many that I haven't hit on yet. But this was what we wanted to do. We wrote out the business plan, dug deep into our own pocket to show we were serious, and set out to pitch the banks. WOW. Talk about risk averse in so many ways. So many bankers said to us "Looking at this plan I really think you guys are going to do well. But come back and see us after you have been running for 18 months. we could maybe do something then."
Well, if I have been running for 18 months, I probably don't need them anymore anyway. This was for a start-up; not an existing, proven business. It was going to take some calculated risk management on the part of the bank.
We talked with some great bankers, settling on one who we really liked. He got our vision and understood who we were as a business. This is important, because the best business plan still looks risky if the owners seem like they don't have the force of will needed to make it happen. Another point is that some bankers believe they know more about business, YOUR business, than you do. Well, they don't. If you have done all the research, know every little detail and came up with all of your own financials, then you know way more than they do. But sometimes it doesn't hurt to let them think they know it all. Generally correcting this is pointless and ultimately you are going to do what you need to do anyway. I mean, you are the only one that knows this business inside and out. Or at least you should.
We had another advantage when it came to financing. That was our Veteran's status. There are programs out there that the SBA provide backing for start-up businesses. This provides bank with less risk and they like that. The SBA has more information on this or your veterans admin counselor. Or if you want my long and boring story on how to make elephants fly (that's what it seemed like we were trying to do when asking banks for start up capital), just ask me or email me.
Here is one thing for sure, once we were approved and received our financing the fun really began. I work out money issues every morning, look at the numbers, work through problems, spend hours on it. But I enjoy it and it is the heart of my business. Oh, and did I mention CPAs? Ya, I LOVE them. And I think I have a great one too. Well worth the money.
Well, if I have been running for 18 months, I probably don't need them anymore anyway. This was for a start-up; not an existing, proven business. It was going to take some calculated risk management on the part of the bank.
We talked with some great bankers, settling on one who we really liked. He got our vision and understood who we were as a business. This is important, because the best business plan still looks risky if the owners seem like they don't have the force of will needed to make it happen. Another point is that some bankers believe they know more about business, YOUR business, than you do. Well, they don't. If you have done all the research, know every little detail and came up with all of your own financials, then you know way more than they do. But sometimes it doesn't hurt to let them think they know it all. Generally correcting this is pointless and ultimately you are going to do what you need to do anyway. I mean, you are the only one that knows this business inside and out. Or at least you should.
We had another advantage when it came to financing. That was our Veteran's status. There are programs out there that the SBA provide backing for start-up businesses. This provides bank with less risk and they like that. The SBA has more information on this or your veterans admin counselor. Or if you want my long and boring story on how to make elephants fly (that's what it seemed like we were trying to do when asking banks for start up capital), just ask me or email me.
Here is one thing for sure, once we were approved and received our financing the fun really began. I work out money issues every morning, look at the numbers, work through problems, spend hours on it. But I enjoy it and it is the heart of my business. Oh, and did I mention CPAs? Ya, I LOVE them. And I think I have a great one too. Well worth the money.
