Small business loans are essential for entrepreneurs and business owners to acquire funds for various purposes. Ambro Blackwell, a Wall Street Journal best-selling author, will join us on today’s Small Business Show to discuss his book: Small Business Loans Made Simple: Revealing Insider Secrets and Strategies For Established Businesses, which walks readers through the financing process.
Being infatuated with business, it led Blackwell to become a financier, which aided in the performance of several important roles, including managing money, coordinating work between management and accounting, and reviewing domestic and international financial statements to promote workforce long-term growth. Therefore, after going through several access to capital events and things of that nature, he began to get the same repetitive question: How to get a small business loan?
After gathering his experience, extensive research, and the lack of resources to answer the repetitive question, he constructed a short read passport to help them get their answer. “It’s a starting place for owners, especially since it’s important to understand the banker you’re dealing with understands your business thoroughly,” asserts Balckwell. He continues, “It’s critical to have that relationship, to make sure they understand you and what it’s like in your world- it goes beyond the numbers.”
Blackwell notes a fundamental misconception regarding entrepreneurs and small business owners starting out. Such as, “The number one mistake is not planning. They’re not planning events or developing relationships, but sometimes, it may just be planning and not knowing how to develop a good team. Or other times, it may simply be not knowing who has an appetite for your business.”
In addition, Blackwell encourages small businesses to establish a business plan, which “will help eliminate those blind spots.” Articulating and breaking down what that looks like is why “it’s imperative to have a good relationship with the lenders and CPA,” he asserts. Furthermore, in many cases, the most difficult times are the best time for entrepreneurs to open their small businesses. “There is always a need, so again, it comes down to understanding the market, your skillset if there is a value for what you do in the market, and then pricing it at a point where it allows you to keep doing it,” declares Blackwell.
Blackwell outlines the additional questions small business owners are asking or should be asking their prospective bankers. Such as:
- Do you have experience with my industry- having lenders, bankers, or whoever with expertise in your industry? It will make it easier for them to understand your world.
Ideally, it’s crucial to understand what an institution offers because they have specific parameters in place that can guide you through your learning search. Also, it’s vital to know the five C’s in lending as well,
All of which may improve your eligibility when presenting yourself to lenders.