7 Questions With The $50 Million Man, Stan Prokop

Stan Prokop is the founder of 7 Park Avenue Financial. The firm specializes in business financing for Canadian companies in the areas of working capital, asset based lending, SR & ED tax credit financing, equipment financing,  franchise financing and banking.

He’s also a Platinum author on my website – you can check out his articles here.

1. What was the hardest challenge you had to overcome with your business?

New business development and having a lack of company infrastructure were, and to someextent, still are large challenges.

2. While you were starting you business, what was your motivational drive that made you work hard?

My wife prohibits me to work for free, so the necessity to earn a living, while at the same timehelping Canadian business achieve their financing needs are two motivational drivers! We work on many transactions that are several million dollars in size, but I frankly enjoy the satisfaction of helping the little guy. We have helped over 350 different businesses achieve the financingthey need – and in the 2008 global meltdown companies of all sizes needed our help and assistance.

3. If you were to open up a new business in a different category what would it be and why?

I suppose it would be consulting, although that’s somewhat related to what we do now in anadvisory capacity on customer financings. I have found that I enjoy sharing my business andfinancing experience with others, and a great deal of satisfaction is derived from knowing wehelped out .

4. Why did you start your business?

I started 7 Park Avenue Financial in 2004 – It’s almost hard to believe but we have total financing originations in excess of $50,000,000.00 with over 400 clients; our mission has alwaysbeen the same – to provide financing solutions for Canadian business with respect to rates, terms, and structures and type of financing that best meets client needs.

5. How do you find your customers?

Up until the past year or so I can honestly say that 90% of all our business is from ‘referrals’. Bythat I mean existing clients telling their peers about us, as well as Canadian banks and financecompanies that refer clients to us when they can’t assist. Many people are surprised at that,but all of the major banks in Canada have referred business to 7 Park Avenue, as well as other government and independent financial organizations. They are comfortable in that referral because of the professionalism and integrity standards. It is very clear to me that in a service business such as ours our key asset is simply our reputation. I would add though that that we have made a significant investment in internet marketing via our Blog, LinkedIn, and sites such as EVANCARMICHAEL.COM, where we receive thousands of hits/inquiries, etc.

6. What three pieces of advice would you offer entrepreneurs starting out today in the finance area?

We work with start ups, up to an including major Canadian corporations. I would recommend any new entrepreneur ensure he has the right capital and financing options in place to properlymove the business forward. Also, understand very quickly that sales and profits aren’t cash flow,and you need to understand your business cash flow. Finally, given the choice, I would ratherwork with an expert as opposed to a novice in Canadian business financing, so seek out goodpeople and good advice.

7. What have been some of your failures, and what have you learned from them?

The 2008-2009 worldwide debacle sneaked up on us pretty quickly, and in hindsight I didn’tunderstand some of the long term ramifications of how business financing would change – it wasa tough couple years referring to our ability to do everything we wanted to for our clients thatreally needed assistance.

8. If you could talk to one famous entrepreneur from history, who would it be and why?

That’s a tough one, but I would say having worked for HEWLETT PACKARD in the finance area for ten years that meeting either of the two founders who started a 120 Billion dollar company in their garage would be somewhat enlightening!

Readers, do you have any questions for Stan? Leave a comment below!