Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 9 How to Finance ...
Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 9 How to Finance Your Business
Question:
"Raising start-up money is one of the great hurdles in starting a business. Would you have any recommendations or some basic do's and don'ts as to how people should go about this great challenge?"
Rod Banks
Executive Vice President, City National Bank
Topics covered in this video:
Starting a business, financing, loans, writing a business plan
Transcript:
First off, before you begin to think about getting your start-up money together, you need to have a business plan. And once you put the business plan together it will help you to determine how much money you need to start your business. Once you determine the amount, then you've got to decide: where is the best place to get it? In today's world it is very difficult to go to a commercial bank--the typical bank you see on the street-- for a start-up business type of loan.
A lot of first time entrepreneurs will start off by using their own personal savings or look to a friend or a relative to see if they can get a friendly partner in with them. Some people will look at putting a lien to some degree on their home. Because of the credit card boom, a lot of people today will take credit card solicitations that come out. And it's perfectly okay to take one of these low interest rate credit card offers if you manage it in a very responsible manner.
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Added: 274 days ago
Views: 7
Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 9 How to Finance ...
Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 9 How to Finance Your Business
Question:
"Are there any recommendations you would have for somebody looking to make a financial request to a financial institution?"
Rod Banks
Executive Vice President, City National Bank
Topics covered in this video:
Business loans, financing, banking, honesty
Transcript:
One of the best things a new entrepreneur can do is to think of their banker as a financial partner. Building a relationship with the bank, with the institution, with the individual is going to be the key. I would find someone who is really interested in your business: who will take the time, who will come out and take the tour and who will ask all the appropriate questions. Because if you think about it, this is the individual who is going to be your representative back to the bank to talk about your business.
Now on your end you should invest the proper time to build the relationship with that banker. Get to know them. Find out how long they have been with the bank, find out about their career and make sure that you stay in contact and build a relationship over time. And the last piece of advice I'd offer is that no matter what the information might be about your company, always share it. Bankers want to know as much as they can about your business. They don't like surprises. If you have bad news they would much rather you deliver it as opposed to having the bank hear about it second hand. So good communication with your banker will be one of the best pieces of advice I could give anybody starting a business.
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Added: 273 days ago
Views: 5
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