How to Create an Effective Business Borrowing Plan

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What are the biggest mistakes small businesses owners make?

According to Hiscox, a Bermuda based insurance company, and reported in the “In Charge” WJS blog, these business mistakes are most common:

  1. higher-than-expected costs
  2. hiring the wrong people
  3. not knowing how to market and sell products and
  4. not securing enough financing

I can’t help you much with the first three items but this blog is about borrowing money so what can we do with number 4?  There are some simple steps a business owner can take during the planning stages to promote success.

Find someone who is financially savvy to coach you through the borrowing process.  They should not be conflicted by earning a commission from the loan they might sell to you.

Avoid the biggest borrowing mistakes by drafting a plan that creates positive leverage, avoids financial rabbit trails and preserves your financial legacy.

Most importantly, when you are drafting your business plan make sure your borrowing plan reflects the six pillars of borrowing character including being a good neighbor.  Be the borrower you’d want others to be if you were a lender.

What borrowing mistakes have you made that could have been avoided with better planning?

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About Michael Shelton

Your Business Coach Facilitating Delegation and Work Group Engagement Michael Shelton has over twenty-five years of business and military accomplishments, including extensive experience with one of the largest, publicly traded real estate investment trusts (REIT). He is a qualified business coach with assignments in cross-functional work group management, strategic planning, unit leadership, joint venture acquisitions, executive education, mentoring, training and merger integration. Michael has accumulated best practices for building committed work groups from more than $4 billion of capital markets transactions and commercial property development. He served as a commissioned officer and helicopter pilot in the U.S. Army, and earned his MBA from The University of Arizona. Michael has served as a major conference panelist and is the author of Cash Flow Rich, Winning Ways to Evaluate and Finance Real Estate. Today, he helps business owners get more work group engagement as President and CEO of Shelton Business Services, LLC in Scottsdale, Arizona. Disclaimer: I don't offer investment, legal or tax advice. Talk to your broker, accountant or lawyer for investment, tax and legal help. I might own stock in the companies I mention on-line. My posts, tweets and other on-line activity are my personal thoughts and don't represent my employer or company.
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One Response to How to Create an Effective Business Borrowing Plan

  1. Pingback: The Urinalysis of Borrowing Money: Empty Bladder, Lighter Wallet? | Borrowing Money the Right Way

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