Loans, Curse Or Blessing?

Loans, Curse Or Blessing?
By Amanda Hash
There are many different opinions on what a means. Some may attach a to your past, how you managed to get yourself in a position to need a loan. Others prefer to look into the future and consider the projection that a can give you, if well managed. What can a do for your business?

Tapping Into OPM

OPM is the abbreviation for Other People’s Money. It is generally used to indicate the investment of other people’s capital in your business, for a share of the profit. But if you reduce the stakes a bit, a bank is exactly the same thing. They “invest” in your business by giving you some cash, and their “share” of your profit is the interest they charge you.

A Great Example

One of the greatest examples of the use of OPM is Aristotle Onassis’s fortune. But he did not start off with OPM. It was long after his start up that he began to use it. Only when people know you well and have the security that you are doing well, will they invest. You pay a low interest, but you are a safe investment. And this is what Onassis did.

A Superb Preparation

Onassis was a successful businessman. He prepared every business meeting in advance, spending hour after hour getting information on the people he was going to meet, checking out every possible question he could be asked and rigging up an intelligent answer. Regarding his trade, he knew every little detail that contributed to make him one of the most successful ship-builders in the world.

Capitalizing On Onassis’s Fortune

Take a share of the little Greek guy’s fortune, by following his example. You need all the information you can get hold of, in order to be successful in your trade. When you have all this, make a well-designed plan of action and stick to it.

Write everything down and print out your business plan and use it to give your banker confidence. And do not forget to mention your recent actions, so there is some actual fact in the document you are providing.