There are many different opinions on what a loan means. Some may attach a loan 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 loan can give you, if well managed. What can a loan 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 loan 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.

And Now, You Can Go For OPM

Now, you can go to a bank, show who you are and get a good deal. An intelligent banker will be able to read your cash flow data, projection for the next five years, assets and HOW YOU GOT TO WHERE YOU ARE NOW. This is very important, because you are telling him what you are capable of doing without a loan.

Under those conditions, you will be considered a low-risk customer and they will gladly want to have you as a regular borrower. Moreover, when you get to be well-known in your whereabouts, they will come to you to offer you convenient loans.

So, Curse or Blessing?

Unaware, desperate, “cashless” people, go for loans which they eventually cannot pay back. They consider loans a curse and do not ever stop to think about what they did wrong.

Well-prepared small-business owners get to grow into bigger and more important businesses, and some even reach the status of enterprise, corporation or whatever the case is. Under these circumstances, a loan is an intelligent association of two parties in search of good business. Surely, it is a blessing.