The Two Languages of Business
The idea came to you when you were driving west on I-80 headed on a trip to see friends in the Rockies. During those seven painful hours as you traversed Nebraska, your mind wandered and eventually stumbled upon a seed of an idea. When you returned home from that memorable drive, you did what you do best: you executed. You took that seed and started your business because that’s what you do. You create.
To this day you make sure to drive that fortuitous stretch of road at least every other year, just to see what your mind might think up.
As an entrepreneur, you can see the future. Where others see an open field, you see a beautiful state-of-the-art facility churning out new products. Where others see an empty shell building, you envision an automated line that will cut operating costs in half. Where others see an abandoned storefront, you see a new retail concept.
You speak the language of a business operator.
But as you know, sometimes you need a financial partner to bring your future vision into reality. For simplicity, we will call this partner the bank, but it could be another type of financial institution. Either way, the same principles will apply.
Back to I-80, your seed of an idea did require capital. So you set up a meeting and shared your vision with the bank. They sat patiently and listened. They asked a few follow-up questions. Everything seemed to be going well.
Then the real questions started. Strange words were said: Normalized EBITDA, Fixed Charges, Unfinanced CapEx, Financial Leverage, Covenants, Guarantees, and on and on. None of it was making any sense.
The bank speaks the language of finance and to you, it might as well have been Martian.
You ended up being rejected by that bank and had to speak to a dozen other lenders to get your first equipment loan. You endured and ultimately got what you were looking for, but you’ve always wondered if there might have been a better path.
Are you a business owner looking for capital? Do you need a financial partner to assist with your business plans? If you speak the language of a business operator, but not finance, you might want to consider hiring a translator; someone who is bilingual. Doescher Group is here to help by serving as part translator, and part problem solver. We can help get you from Point A to Point B. Reach out to Doescher Group to learn more.
