What Monopoly can teach you about business funding

What Monopoly can teach you about business funding

Monopoly has been a classic board game for over 100 years but if you’ve played it, you quickly realize what it takes to keep the cash flowing to become a real estate tycoon. But the game offers wisdom that can be applied to the real world of financing. Below are four comparisons to increase your understanding and chances of securing the funding your business needs. 1/ Assets Based on real estate, Monopoly allows you to amass three types of assets: land, houses and hotels. Sometimes, when you are low on cash, you can trade a house or two, maybe a hotel, for a loan from the bank. In your business, your assets can be a piece of land or a building, as well as equipment, vehicles, inventory, etc. This can be used as collateral by a lender to guarantee that you will repay them the loan they approved. 2/ Cash flow Doesn’t it feel good to collect cash every time a player stops on your property and has to pay the rent? Yeah, lenders love that too! If you have a history of consistently collecting revenue, lenders will feel comfortable that you possess that know-how and will continue to produce, providing an ability to repay the monies they lent you. 3/Get-Out-Of-Jail card At times we can use some help from above! In the same way that a get-out-of-jail card bails you out when you need it the most, in real life, a co-signer, someone willing to pledge their assets or personal reputation, could be just what you need to overcome current challenges. 4/Always have cash on hand By far,...