Re: Think like a bank
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Imagine that you own a bank. A prospective small business owner comes to you for a loan. What types of things would you look for in his personality, his business plan, etc., to make you feel comfortable risking your money? What types of terms would you like to get for your risk?
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Clarification: This is an exercise to get this forum brainstorming on how to both raise money to open a business or expand an existing and to help in basic business planning (i.e., planning for growth, marketing, etc.). The things that will convince you to loan your own money to others are the same things that will convince a bank, or family, or friends, or investors, to loan you money. So lets imagine a perfect stranger walks into our office and asks for a loan. How do you analyze his plans in order to assess your risk? How do you know if he'll be successful? What specific types of things would YOU look for to assess the merits of his plan? After all, you're loaning him money on the assumption that he'll be successful and be able to pay you a healthy interest rate.
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