Menu

problem

meerkat

Keep your ears open, and allow others to assist….

, , , , , , , , , , , ,

A week ago, I received a message from a good friend, indicating that he had noticed what he thought was a typo on one of my blog posts.  In my efforts, there are very few things more frustrating than messing something up in the minutia.  Sure, enough, he was absolutely correct!

I knew exactly how that mistake had taken place.  I could sit and try to come up with a reason for how I had overlooked it, how it really meant what I said, or that it was a new concept I had come up with, but that would be kind of fruitless (although I have worked with many who would make a herculean task to argue their correctness).  The point is clear; someone saw an error and pointed it out.  What a kind and thoughtful thing to do, and what a great gesture in assisting me with fixing what could be an embarrassing public presentation.

Thank you, friend!

A reflection on this gesture brings up a good point to be taken seriously; there are many people along our journey that are there to assist, and with good reason (not just good intentions).   While we often are enamored with how successful we can or have become, none of us get there by ourselves.  We have friends, clients, employees, vendors, associates, partners, colleagues, and even our children and spouses, who contribute heavily to all of the facets in our efforts, and have a hand in carrying the load,  offering the advice, and pointing out the errors.  They are an objective set of eyes and hands and thoughts, that do much of the heavy lifting and supplying, making the job easier for all of us.

Self-made we are?  I think not.  We should be grateful for the assistance and input of others.

Benjamin Franklin put it best in a short poem that shows the impact of others that contribute, and what we potentially lose if we do not accept even the simplest input of others;

“ For the want of a nail the shoe was lost,

For the want of a shoe the horse was lost,

For the want of a horse the rider was lost,

For want of a rider the message was lost,

For the want of a message the battle was lost,

For the want of a battle the kingdom was lost,

And all for the want of a horseshoe nail.”

All at the cost of a nail, or the good input of a friend and colleague….

In our daily efforts, we encounter the seen, and the unforeseen.  Growth challenges.  Strategy challenges.  Competition challenges.  Financing challenges.  The need to make a best decision is critical, and the need to have an objective and informed decision is equally as important.  What we don’t see CAN HURT US if we are not careful.  The results could be Sales Stagnation, Rudderless Steering, Loss in Industry Status/Missed Opportunities, all of which could be detrimental or terminal if we are not careful.

Have you looked at your environment lately, through someone else’s eyes, to see if you are missing anything?  A good place to stop and take a look at your efforts is at the Mile Marker.  Mile Marker Business and Consulting Services, LLC is focused on looking at your business with you, and bringing fresh perspective to assist you in determining how things can be better.  Let’s start a conversation.

[email protected]

www.milemarkerbusiness.com

Missing Piece

We were supposed to do that WHEN?!

, , , , , , , , , , , , ,

I was approached by a company last week, who expressed a need for financing.  They have struggled over the past few years, and have found a new avenue for revenue.  Very promising, and the potential is very good.  The conversation went something like this:

“I need to get a line of credit in place so we can move forward with this opportunity!” said my contact.  “Very good to hear that things are looking up.  Have you discussed the matter with your Bank?” I inquired.  “No, not yet.”  he said.  “When does this project start?” I added further.  “In 3 weeks.” was the response.  “How long have you been working on this project?” was my next question.  “Oh, about 6 months.  It’s a big deal!!” was his answer.

3 weeks?  It’s a big deal?  Hmmmm…..

I’m not sure why I need to ask this question, but judging from the short term need, the volume of effort that will need to take place over the next 3 weeks, and the fact that this is a BIG DEAL, why are we talking NOW!?  We should have been discussing this 6 months ago.

All too often, business owners are very busy running their business, and not busy enough planning and strategizing for the future.  I am sure my contact at this company was actively pursuing this new opportunity with 110% attention to meeting the client needs, but in doing so, the company has lost site of a few critical pieces;

  • Trusted Advisors: the people that help with decisions, outside of the company. Why not discuss the potential for financing (and other things) with your Banker, your Consultant, and your Accountant AHEAD OF the decision?
  • Strategic Planning: Are “all of the ducks” lined up for the beginning of the project, or is there greater enjoyment in trying to “herd cats” to get the project going?
  • Business Planning: Has there really been a process of putting pen to paper, and designing a map for what the business can handle, where there are greater internal and external needs, and how the company can manage the project when it lands, or is this being handled as a “bolt it on to the current operation, because we are tough and can handle it” kind of thing?

Surprisingly enough, the quick rush approach to growth that my contact has embraced is more common that we realize.  Companies rush to gain the business, and they overlook important steps.

Taking the time to develop a plan(not just plans) is very prudent, unless a panic storm is how you like operating.  Reaching out to the people who help you and can add value is a wise move, unless perhaps, your trusted advisors really do not add value, or you really don’t trust them.   Having a strategy to implement makes complete sense, unless the strategy you employ is that you throw mud on the wall, and hope it will stick.

Want to get ahead of the curve when a new idea or financing need comes up?  Why wait until the last minute.  A great place to stop and build a strategy is at the Mile Marker!  Mile Marker Business and Consulting Services, LLC can help you get out in front of the big issues, and have you ready when it’s time to move forward.  Let’s start a conversation.

[email protected]

www.milemarkerbusiness.com

Win

Mile Marker Business and Consulting Services, LLC provides Underwriting and Analytical Review for successful $5 Million SBA 7A Guarantee

, , , , , , , , , , , , ,

In July 2017, Mile Marker Business and Consulting Services, LLC provided a huge boost to the financing efforts of a recent Ohio Transportation Company acquisition.  The acquisition involving a longtime, solid performing acquisition target held several unique and complex characteristics that could best be identified as “Cash flow solid, but asset poor”; an opportunity well suited for the assistance of the Small Business Administration (SBA) 7A Guarantee Program.

Mile Marker President David Alexander was engaged by the finance team because of his extensive background in commercial banking, and public financing support programs like the SBA.  “Underwriting in this era of banking can often have a perilous road to travel,” said Alexander. “Banks have well-developed risk models that block and tackle in their underwriting efforts, but all too often, a few issues can create a huge chasm between your company and an approval.  Creative thinking is a must, and the finance team was on top of this.  The SBA provides a great opportunity for meeting these challenges.  Prudent use of the 7A Program, a strong leadership driven finance team, and bringing in a former commercial banker to assist in understanding banking requirements and terminology can be key to success!”.

With support of Mile Marker, the finance team initiated underwriting, developed a model that matched up the buyer and acquisition target’s strong qualities with the SBA’s criteria, while strategically aligning the new company’s best qualities, practices, and management strengths with acceptable banking approval criteria.  The end result was an approval, a closing, and a positive outcome/future for the new Owner, Seller, and Transportation Company.

Mile Marker Business and Consulting Services, LLC provides a wide array of business support, consulting, and financing services.  The goal is to address real problems, overcome distractions, and provide real solutions that help owners and their companies prosper and grow!

Do you have a financing need?  Are there problems in your company that cause you mental anguish?  A good place to stop and assess the situation is the Mile Marker!  Let’ start a conversation!

[email protected]

www.milemarkerbusiness.com

Translate win

“You’re something like a Bank Translator.” Yes, I guess I am!

, , , , , , , , ,

I had an intriguing discussion with a client the other day.  During out discussions about financing, my client delivered the above quote to me when I explained exactly what was being asked by their bank.  The request dealt with their ability to pay for their loan with current resources, the amount of debt the company was incurring, and their business plan.  Bank comments were very focused on legitimate analysis of operations, but the response was not in language that businesses typically use, and the solution was not immediately apparent.

To quote the Warden from Cool Hand Luke, “What we have here, is a failure to communicate.”.

Not unlike my client, bankers work very hard (I would know; I was a banker for 24 years).  The hours are NOT sexy (as it may be perceived).  The competition is fierce, crazy, and growing.  Travel can be often, and tiring.  Profit margins are really not very large, and regulations are everywhere, and daunting!

That last point, regulations, affects the behavior of banks.  It’s not personal.  Bankers are challenged with navigating through a desire to gain a new client and expand business, while avoiding riskiness and potential losses.  When it comes down to it, despite how great many ideas and projects are, bankers are ultimately held to a standard that might say “AVOID RISK!”, simply because of a few issues.  If the issues are great enough, the answer for financing might be “No”.  When this happens, the response (and perceived rejection) from the bank can often be hard to understand.   What do you do now?

Bankers spend a great amount of time working with clients to solve their financing problems.  When a request receives a “Yes!”, everything is great, as a new relationship usually grow and thrives.  But when the answer is “No”, the challenge is even greater:

  • How do you get a company that you like a lot to keep talking with you?
  • How do you keep the conversation going after you just told a client that you can’t support their request?

As a banker, I knew a lot of the answers, but there was a conflict; I was the banker.  My job was finance, not operational strategy.  But, the “No” was where the challenge (and the fun) was!

So, back to my client, and me, the “Bank Translator”.

My client found GREAT COMFORT in my answers: the answer from the bank was not as convoluted as it first appeared.  There are things to be done by my client, including developing a strategy to help them to get to “Yes”, which is where I will help.   My client will understand how the bank focuses on finding a way to balance growth and risk, in language that companies don’t often use to manage their operations.

Do you ever feel like your bank’s response to your request is confusing?

A great place to stop along the journey, translate the response, and plan a strategy, is a MILE MARKER.  MILE MARKER BUSINESS AND CONSULTING SERVICES, LLC. is built on the backbone of understanding banking and finance requests, and helping clients navigate and continue their journey with a “Yes”.  Come to the Mile Marker; let’s start a conversation!

[email protected]

www.milemarkerbusiness.com

Climbers

Let’s do the Right Thing, and MOVE THINGS FORWARD!…..

, , , , , , , , ,

Many years ago, I was introduced to a VERY antagonized client relationship within my company.

The Client had made a huge investment in a new product line.  They had extended their lines, bet on their solid existing, and future incredible, and were ready for the fruits of their labor to pay off.  They began full-on marketing and sales.  And on 9/11……..they were at a large trade show……staring at empty aisles…. with potential buyers wanting only to go home to their families.

What a huge letdown, and recipe for disaster.  The markets seized up, and new buying hit a wall.  No-one, no matter how good the Client’s new product was, wanted to invest new money.

Our Client came back to their office, and within a few months, virtually every one of our company contacts had antagonized the situation, and it was very bad.  There were things that needed to be done, but the handling on both sides was tense and harsh.  So, my Team Leads decided to clear the slate, and bring in a new face.  They handed the file to me, with a few words of what to expect, and off I went.

I spent the next 2 days perusing the files, learning the history and future, and developing a strategy for starting a conversation with our Client.  Lots of challenges, but I saw potential; a good product, a good operator, a good base of clients, and a reasonable history, and a need to get past this setback.  I then called the Client.

To say the least, the initial discussions were a bit tense, and rightfully so; I was new guy on the block, in a situation that had not been very good for many months.  What could I do?  I will tell you.

I placed before the Client a good, well thought out strategy. Something like this:

  • You and I are not familiar with each other. My intent is to create a working relationship.
  • I want to come out to your offices and meet you, and tell you a little bit about me, so you will know me.
  • When I am with you, tell me all of what you want to tell me, and I will listen;
    • What is good and bad about the company/the relationship; where did things go wrong?
    • I have gone through our file, and have digested a lot of information, and maybe I can help fill in the blanks, and bridge some gaps.
  • You and I will find some resolution, and we will agree to disagree on some things, BUT;
    • Let’s agree to build things positively moving forward.
    • Call me when things are good. Call me when things are bad.
    • I will not over-react to anything, and we will address each issue as it comes about.
    • Let’s find a way to walk forward in the best light, and make it better!

18 months later, I had a recovered company, out of debt, and openly communicating about next steps that WE (my company and the Client) could together engage, and from which we could prosper.  I became his BEST Relationship Manager.

Mile Marker Business and Consulting Services, LLC is founded heavily on this and similar stories; the lessons of STRATEGY, COMMUNICATION, PATIENCE, and UP-FRONT HONESTY are priceless and engrained in every discussion.  Making the right moves and doing the right thing, without too much pride, and with RELATIONSHIP at the forefront of creating optimal success for all involved.

Do you REALLY want to solve problems?  The MILE MARKER is a great place to stop.  Let’s start a conversation.

[email protected]

www.milemarkerbusiness.com

handshake 1

Build a BETTER BANKING RELATIONSHIP…….

, , , , , , ,

A large loan opportunity came to the markets recently; the company was a staple of their community, and the project was a necessity if the company was to survive.

The company approached their bank, Bank A, who was a bit too comfortable with “business as usual” after 50 years as the existing bank. Bank A was a bit hesitant to react favorably.  The company was disappointed, and decided to look for alternatives to Bank A.  The contacted Bank B.

After learning of Bank B’s addition, Bank A jumped into action; “We can’t lose this customer!” said management.  “Get in there and get that deal.”  Bank A brought in a new relationship manager to ease tension, and they dove in.

The deal was difficult, and company performance and projections were not as either bank would desire, but, the deal could be done. This was a competitive, regulated industry, with changes occurring daily.  But the company was a necessity, they were a large part of the community, their ties to the area were deep, and medium to longer term outlook was promising.  Regardless, this project would proceed.

Both banks sat with management many times, toured facilities, digging into significant information with due diligence to identify the key issues and true needs.  The task was great, and the Bank A relationship manager was able to level the playing field with the company back to their side.

Internally, however, the story was a bit different.  Bank A’s discussions centered on leverage, minimum cash flow needs, stress testing, industry threats, management quality, and other companies that performed better, and timing of the project; all critical to a quality lending decision.  But many obvious matters (benefit to the community, the company’s solid reputation, project advantages, trusted relationships, and positive outcomes), were continually downplayed.

Ultimately, Bank A turned the opportunity down.  Their dialogue indicated that “This CREDIT (they referred to their customer as a financial term!!) does not fit our risk profile and is not the type of deal we want.”.

Bank B, however, took a different approach.  They did not dive in all at once to “steal the deal”.  They were, instead, pragmatic and practical.  What was their approach?:

  • Bank B asked the company to clearly define the project and the company’s expectations.
  • Bank B agreed to respond within the next 48 hours as to how they would like to proceed.
  • Bank B agreed with the company UP FRONT that they would do business together.
  • Bank B internally talked about their own expectations, and developed a proposal that would both meet the company’s needs, and meet the bank’s expectations within a sound risk profile.
  • Bank B built their proposal to meet the company’s expectations, and included building risk for the difficult years and the good years, as opposed to avoiding risk. The model fit within the Bank’s own risk profile, and while not ideal, showed the potential for true risk management.

Bank B responded to the company as agreed, with its own expectations and proposal, clearly stating how this would be a RELATIONSHIP, and ultimately won the company over.

RELATIONSHIP is not simply “You are my client.  I have the business.”  It is defined as the ability to take on both good and bad, to adapt to change, and to be open to ideas.  Even if the answer is “No”, it should be supported by a full understanding of both party’s needs, with an open dialogue.

Banks are a solid, very necessary part of our community, and they work hard to develop sound decisions based on very limiting criteria.  But there is room to grow, to ask questions, and present new ideas that, “while not ideal”, if developed with expectations and a plan for improvement, can flourish into great relationships.

Mile Marker Business and Consulting Services, LLC has extensive experience in working with banks, both inside and out.  If the decision is confusing or misunderstood, or not moving forward, the Mile Marker is a place to stop, and ask for help.

Let’s start a conversation!

[email protected]

www.milemarkerbusiness.com