The Bankers Friend
You have need of OPM – other people’s money. You hatch a plan to become the bankers friend. And no, I don’t mean those stick ‘em up and get away with bags of cash either.
The biggest mistake most would be entrepreneurs make is to rush headlong into a bank, all excited, bushy talioed and bright eyed. At the end of the day, you look like a very wet and cold dog after that meeting with the banker. He or she wasn’t really your friend, you find out.
Just remember, your biggest and brightest idea ever has yet to see a dime. And banks do not give loans based on ideas but the ability to pay, often based on the track record of your idea. Do you have that track record?
If “YES”, you might get somewhere provided you also offer the ability to pay and sufficient value of assets or a guarantor with sufficient assets.
If your answer is “NO”, go somewhere else.
But let’s assume you can still get to be the Bankers Friend. There are a few things you have to be sure of before you get even close to the guy and his/her money.
1) You have been talking to your industry peers for ideas and due diligence haven’t you?
2) You have a snazzy full blown business plan to kill the competition with a very well laid out financial plan (remember, bankers think only money in a bank) right?
3) You have turned yourself into your potential business expert right? This goes even if you are expanding your business or starting out a new one.
4) You know the size of the loan you require and can show the banker with a nice flow chart the why and how and what right?
5) You manage to go to a town get together and shake the hands of all the bankers there from every bank and made a darn good impression too.
6) To find out how much of an impression you made, invite each and everyone of them for lunch on you. Call it an investment. (You might be able to write that off too). Remember, you’re building a relationship with your bankers.
7) Test and feel how this person is towards you. Have you softened him or her up yet? Now, soften as in them wanting to know and help you as opposed to you being the sledge hammer knock ‘em dead business man (never works unless you’re Mr. Trump).
8) Remember, even the Donald had to be Mr. Humble when he was in dire straits not too long ago, by his own admission. Come to think of it read Donald Trumps book “Trump: How to Get Rich” and learn about being an effective negotiator.
9) Here’s what Trump has to say about being an effective negotiator:
The bestnegotiators are chameleons. Their attitude, demeanor, approach, and posture in negotiation will depend on the person on the other side of the table.”
NewYork magazine wrote that I’d ‘perfected the pompad-over.’ The New York Times called it ‘an elaborate structure best left to an architecture critic.’” (Trump talking about his hair)
“Having a well developed ego, contrary to popular opinion, is a positive attribute.”
10) Now, primed and ready, go do your number on all of them. expect to succeed but you won’t know when. Whenever a rejection occurs, do this:
a) Always ask for feedback and ask why?
b) Do over lunch, a beer or golf.
c) Rinse and repeat.
I’ve given you the gist of how the wealthy and successful people deal with bankers and be the bankers friend. Practice makes perfect.
Note: If this doesn’t work for you, EAT YOUR OWN HAT!
But then, do tell me how it works for you. Maybe you did get that piece of other people’s money.
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