Ready! Fire! Aim? Five Ways Borrowers Can Be Like Sun Tzu

Charge calculations 4

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“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:

  1. The ability to clearly see the right path and to avoid borrowing rabbit trails which lead nowhere.
  2. A clear picture of where the borrowing mines are buried and how to avoid blowing up your business with avoidable borrowing mistakes.
  3. 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.
  4. You can target the right lenders to maximize your borrowing effectiveness and avoid a shotgun approach when you search for loan dollars.

Plan, plan, plan for victorious borrowing.  Do you have a great team to design your borrowing battle plan?  If not, find a trusted advisor.

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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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2 Responses to Ready! Fire! Aim? Five Ways Borrowers Can Be Like Sun Tzu

  1. johnlmalone says:

    oh dear. a mistake of sorts has been made. I wrote my recent blog about borrowing so I thought I would visit a few other borrowing blogs to see what they had to say but we’re not talking about the same thing — or are we? there is still much I can learn about borrowing from your blog

    • John, I cover business and personal borrowing issues. I will look at your blog too. A link back to each others blog would help us both if it’s a good match. I’m relatively new at blogging so any constructive feedback is welcome.

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