SubscribeDeveloping your business know-how helps when meeting with:
- a prospective business borrower
- a current business borrower you would like to keep (and isn't that most of them?)
- a current business borrower requesting a restructure of their loan
I'll pass along the ones I stumble onto...and here is one.
Chris Carey is president of Chris Carey Advisors LLC, working with entrepreneurs on business redesign to increase profits and improve performance.
The Case for Sharing Company Performance Data
Small business owners often keep their managers in the dark. That's a huge mistake. Chris shares the steps one company took to bring their managers into the light and reverse a death spiral in the making. Read the article here...If you like that one, take a look at Chris's Business Tip series published at BusinessWeek.com:
- Examine Pricing
- Create Forecasting for Business Units
- Assess Customer Profitability
- Establish Daily Forecasting
- Measure Current Performance
2 Comments
Posted by Netsuite Services
Great article, thank you for sharing!
-Tim
Posted by Sugar
Can you also turn back the clock? Wish we had known of your site 5 years ago.
In 2006, we began plans to add a motel and restaurant to our small resort.
Our bank said, "Swell business plan! Here is a million dollars!"
Said "The 3 C's of lending? Your credit is good, and you sure got the collateral - 130 acres of prime development land appraised at $1,350,000"
Said "DTI? Not that important. Just show us the appraisal!"
Said" No customers? No staff? No building? You still gotta fill the site and find contractors? No cash flow? Undercapitalized? No problem, you got a great appraisal and sure are swell folks"
Said "No money to make your monthly payments, shucks, we'll just lend you some more money, at a higher interest rate of course, look at the risk WE are taking!"
Said " Tsk, tsk, you're in default. Oh, well, we'll just have to foreclose."
Said " Chapter 7? bummer"
Said " aren't you glad to be rid of the, um, stress? We're sure you'll find something else to do."
Said " why don't you just go back to trucking. You nice folks sure liked that 14 years ago when you started this resort."
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