This morning I attended a business breakfast that is part of the business network of the five Northern councils in Melbourne. 

Paul Stoddert ( Of Minardi fame )  was the guest speaker. He spoke about his observations on the current business environment and the need for people to be positive and to stop adding to the negative speak that has overtaken the business press. As I have mentioned before, the facts are, many are suffering and consumer confidence has dropped which results in a sales decline. Even if our business is suffering, we need to watch our own attitude and the way we present to our employees. We have to show a positive face.

He did make a comment that the banks have stopped lending to business. Well, this is not entirely true. At my table was the managing partner, nabbusiness, in the Northern area of Melbourne.  What John McGilp said was that money is available for private business but you have to jump a few more stringent hoops to get it. My observation is that unless you can present a viable business case, backed up by a professional business plan showing clearly that the business has a strategy to achieve its forward targets and can afford to meet its financial commitments you will struggle to refinance or obtain additional funds.

At the end of the breakfast I also met Justin Tucker from the St George Bank who has a portfolio of business clients and he backed up exactly what I have stated.

There is a question on our web site that asks if you would build a house without a set of plans or make a movie without a script. Its that same with a business plan.The banks are now insisting on proper documentation and proof that your cash flow is positive backed up by a quality management team.

Finally, Paul Stoddard was indeed an entertaining speaker and has an interesting story to tell.