Posted by Molly Nelson - With banks and regulators more concerned with balance sheets than
lending and the news that according to the federal government, Bank of
America needs to raise a $33.9 billion cushion
in case of any further economic downturn, it looks harder and harder
for small businesses to gain access to financing they need.
What is a business owner to do? According to a New York
Times interview with Doug Tatum, a consultant specializing in the
finance issues faced by growing companies, business owners need to stop
thinking about borrowing money.
Money quote:
"Entrepreneurs have a limited amount of bandwidth, and they have to
quit wasting their time chasing the impossible. They need to think
about how they can change their business model to become profitable.
That’s where the capital to grow will come from."
Do you think Tatum is right? Are you making changes to your business model instead of pursuing loans?