The Two Languages of Business

As an owner-entrepreneur you know how to execute. You can take an idea and turn it into a business that provides benefit to your customers, employs people, and provides you a profit at the end of the day. You are a creator.

You can see the future. You love to look at an open field and explain the beautiful state-of-the-art facility that will be on that same ground in a few short months. You see some empty space in your factory floor and envision a new automated line that will cut your operating costs in half. You even see a newly leased space and envision it packed with customers for your new retail concept.

You speak the language of the owner-entrepreneur.

To bring your future vision into reality, you cannot always do it on your own. You often need a financial partner. For simplicity, we will call this partner the bank. It could be bank or some other financial institution.

You set up a meeting and you share your vision with the bank. They sit patiently and listen. They will even ask a few follow up questions. Everything seems to be going well.

Then the questions start. Strange words are said: Normalized EBITDA, Fixed Charges, Unfinanced CapEx, Financial Leverage, Covenants, Guarantees, and on and on.

Perhaps some of this conversation brings you back to your last meeting with a banker or perhaps a meeting with your CPA. But it’s not making any sense.

The bank speaks the language of finance and to you it might as well be Martian.

You have a decision to make … You can get frustrated or you can do something about it.

If you choose to do something about it you need to find a translator; someone who is bilingual. Doescher Group is here is to help by serving as part-translator, part-problem solver. We can help get you from Point A to Point B. Reach out to Doescher Group to learn more.