Impress Your Bank Manager with a Deep Understanding of the Market.
One great way to help put your Bank Manager’s mind at easy and improve your chance of getting a loan is to really do your industry homework. Even though ‘the numbers’ and your equity position will play a dominant role in assessment criteria, presenting yourself as a knowledgeable, experienced business professional in your chosen field will certainly help your chances.
There are two levels of information you should demonstrate.
‘Macro’ Level Understanding
When you demonstrate ‘Macro’ level understanding, you demonstrate how in touch you are with the general business environment. These influences are typically things you have no direct control over, such as:
- Economic Conditions
- Political Environment
- Socio-cultural Factors
- Technological Influences
‘Micro’ Level Understanding
When you demonstrate your ‘Micro’ level understanding, you demonstrate how in touch you are with the environmental influences that affect your business directly; often factors you have some level of control over, for example:
- Access to customers
- Supplier relationships
- Stability of stakeholders
- Competitor levels and tension
Articulating your understanding of these factors tells your bank manager that your decision to start a business has been as a result of careful and deliberate planning, not just on the spur of the moment or on a whim.
By taking a full 360 degree view of the market and industry your business will operation in, you not only demonstrate your strategic thinking and business acumen, you also improve your chances of business success in the real world. While sometimes it might feel like you’re only going to all the effort of gathering all this information to satisfy the bank, don’t be surprised if you actually gain valuable information that will help your business operations over the long term.
* As always this advice is general in nature and does not take into account your specific circumstances. Always consult your professional adviser. *