This message today is slightly different but still on-topic.

If you are going to look for financing for your small business, you need to look inwardly first before letting others see your outward presentation.

Charm and Looks First!

Not really, being charming and having great looks will work for the short term but when the chips are down, you will be facing some hard realities, just loot at what happened with Hefner’s bunnies when the economic reality hit the mansion! Fire the girls or there will be worse trouble! Sex doesn’t sell as it used to, I guess.

Back to the story, when you are in the marketplace you have to face the reality of the marketplace, the financial requirements or standards of the marketplace and you need to be able to present the right picture or you face much greater rejection, specially now when the financial market is facing such a high turmoil.

Here’s what I’m talking about, what does your credit report show when a financier looks at it? Does it show a responsible individual who takes care of business on time all the time? Does it show someone who is responsible for a large balance? Does it show someone who manages his financial assets and liabilities well?

If you know that your answer is going to be anything but yes to any of these items, the thing you have to keep in mind is that the financier is not going to be very interested in doing business with you. This person isn’t a financier for charitable causes but for profit. That is the bottom line, pure and simple.

Think about it, if you have money to invest in a business and were presented with a credit report that was shaky would you feel comfortable parting with your money to prop the business up? If you answered yes, then go for it, otherwise, work on changing the picture so that you will get a yes.

What does it take to change the picture, because that is usually why you are reading information such as this?

First, how do you respond to money?

Do you spend it faster than you get it? Do you borrow above your ability to either pay it or your maximum balances? Are you over-extended everywhere and living on edge?

Your response may be just the opposite, you may be someone who hoards money but not very wisely. You may be what’s known as a tightwad, or simply tight-fisted with your money.

Whichever way you respond to money, bear in mind that it is going to come across in your conversation and in your financial information. This will also impact the response you will get from investors whether they are bankers, or private institutions.

How do you resolve this if you don’t have a good financial picture?

First off, rather than waste your time fighting the bankers, find more friendly venues, such as buyers and vendor loan options. These are a lot easier to work with and you may be able to get your business handled with just those.

Next, work with a financial counselor that is not out to rip you off to find a way to clear up your credit history. This may take a while. Be patient, the rewards will be worth it.

If you are serious about your business, create an image of a serious business. This includes generating a business credit history which you may be able to use to find the financing you need and may be a lot easier to explain away. Again, this is not going to happen overnight, not even if you pay an arm and a leg to get it setup. Remember that stability can be seen in history a lot more easily than you think.

Finally, look into your own heart and answer the questions about your relationship with money. If this is an area that you should work on, there’s a real good program here that I would thoroughly recommend. Definitely worth it if you want to change the way you behave towards money.

I look forward to sharing with you some more thoughts on money and how we relate to it for the next few days and welcome your comments or thoughts on what has worked for you and what you are struggling with as well.

Until the next time, all the best on your venture