Before Applying For Business Financing, Make Sure You Know Your Stuff
November 19th, 2009
There’s Nothing More Impressive Than First Hand Knowledge
Have you ever had a conversation with someone where they just knew everything relevant about a subject? What ever question you through at them, they instantly came up with a factual, accurate, no fluff answer that left you impressed?
That type of focused and detailed knowledge can also be the making of a great first impression if used properly.
Too often when business owners or managers apply for business financing, they are not completely up to date on the details and specifics of their own business. Yes, they can answer questions at a strategic level, but when lenders or investors start to drill down into the specifics, they don’t have much to offer or have to overly rely on reports and notes or even their employees to answer the questions posed.
Outside of the underlying business opportunity, there is nothing that impresses a lender or investor more than a business person who they can grill in all directions but can still consistently come up with a solid and specific answer.
Why?
Because this type of demonstration of knowledge is hard to fake with some last minute cramming. It tends to speak to someone who is on top of the key metrics of their business, pays close and regular attention to the things that matter, and has thought about things enough to have a strong opinion if required to provide it.
The key though is in the delivery. Being a “know it all” can totally destroy the potential good Karma created. No, the better approach is to let them come to you. Let them ask the questions and expand further on your answers. All you have to do is provide the answers and let the interview flow.
I mean, if you had some extra capital and wanted to lend it out or invest, who would you be more willing to trust with your money… a business person with general knowledge or someone who gives you all kinds of warm fuzzies when they blow you away with their depth of knowledge and attention to detail when describing something to you.
It’s not a hard answer for me.
Too often potential business financing opportunities go up in smoke when the business owner or manager either lays an egg or basically does not impress when they get their opportunity to close or advance the deal.
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