Find. Build. Sell.

CHAPTER 11Sell your value

Only a fool thinks price and value are the same.

Antonio Machado

Few businesses can expand and grow without fresh injections of capital, so it makes sense to understand the banking landscape you're operating in and give yourself the best chance of success. I've learned a few things along the way that may help you navigate this torturous exercise.

How to choose the right bank

I can't stress how important it is to develop a good relationship with your banker and to start building that relationship before you need them and their money. While they will always crunch the numbers to assess your creditworthiness, they will also assess you as a person to decide whether or not to take a gamble on you. Whether you choose to work with a traditional bank, mutual society, credit union or national bank, you'll find their policies and procedures are similar.

For a start, choose a bank that knows your needs. This sounds obvious, but certain banks specialise in loans for certain industries. For example, our bank has a strong presence in hospitality: the bankers understand it and are (reasonably) sympathetic to the undulations of this erratic industry. Mind you, when a bank changes its CEO (and this is happening more and more frequently than in the past), the preference and risk tolerance for an industry can change along with it, so you need to keep your finger on the pulse of what's happening in your industry.

That's why joining your local association or industry ...