“Now the general who wins a battle makes many calculations in his temple ere the battle is fought. The general who loses a battle makes but few calculations beforehand. Thus do many calculations lead to victory, and few calculations to defeat: how much more no calculation at all! It is by attention to this point that I can foresee who is likely to win or lose.” Sun Tzu, The Art of War
How can Chinese military wisdom from the 6th century BC be useful for borrowers today?
Planning to borrow is like the general who plans before engaging the enemy. Imagine fighting a war by the seat of your pants. Your army would be overrun, suffer massive casualties and be bloodied and demoralized. The long march in retreat would be exhausting.
The benefits of a detailed borrowing plan include:
- The ability to clearly see the right path and to avoid borrowing rabbit trails which lead nowhere.
- A clear picture of where the borrowing mines are buried and how to avoid blowing up your business with avoidable borrowing mistakes.
- The borrowing plan will reveal strengths and weaknesses in your capital planning. You’ll quickly see if the new loan is serviceable with the projected cash flow.
- You can target the right lenders to maximize your borrowing effectiveness and avoid a shotgun approach when you search for loan dollars.
- Best Posts from Pro Borrower-50th Anniversary Edition (proborrower.wordpress.com)
- Jerry Brown’s applies ‘Art of War’ to new tenure (sfgate.com)
- Five Reasons Your Borrowing will Crash Your Small Business (proborrower.wordpress.com)
- Sun Tzu as a habit of the mind (nextbigfuture.com)
- Sun Tzu: Waging War (auntiehathaway.blogspot.com)