Why do companies struggle to raise finance?
Well, a large part is ‘lost in translation’ that is banks and small businesses really
don’t understand each other. So how does a bank look at your business?
Understanding this will go a long way. We call it the Chocolate Orange approach. When you go to your bank for money your business
is nicely wrapped up, presented and looks tastey. Your bank give it a whack, they then get rid
of your – best client
best supplier add to your costs
reduce your sales director goes ill
a client fails to pay you get an unexpected bill Then they see what is left. Doesn’t look quite
so tastey eh? It is about keeping these segments together,
showing what contingency you have in place, about answering questions before they are
asked. Think about your segments, work out how you
keep them together and you will start to get more results from your bank.