The Triple “A” Funding System – Step Two – Deep Dive Evaluation – Part One

Having introduced the 9-Step Triple “A” Funding System in my blog a couple of weeks ago, last week we continued by looking at the first step in the entire process – the Deal Recon.

This week we move on to step two called the Deep Dive Evaluation.

The Deep Dive Evaluation is arguably the most important step in the entire process of getting business finance. With this in mind, we’ve decided to give two weeks to covering the Deep Dive Evaluation – this week and next week. So here goes….

The Deep Dive Evaluation we carry out with a client takes the form of a meeting with the client, which typically lasts anywhere between 60 and 90 minutes. The meeting is either face-to-face or as a Skype or telephone call.

The fundamental purpose of the Deep Dive Evaluation, either in person or remotely is to listen. At this stage in the process, put simply, the most important thing we can do with any client is listen to them.

Of course, it’s important that we do the ‘deep dive’ and explore in detail the clients funding requirements. But it’s about more than that.

It’s also about gaining an insight into the client’s background, understanding their business, getting a sense of their hopes and dreams.

One of the best pieces of advice I was given very early on in my career was: “Working with a client is never just about raising finance. Raising the finance is simply a ‘means to an end’. The important thing is to always remember that the finance helps them fulfil the dreams and desires they have both for their business and for themselves”.

Sound words.

And as a business owner, you will be no different in your reasons for raising finance. Whilst there will be a very specific reason why you are looking for finance; there will also be a bigger picture.

The finance you need to raise may well be a ‘stepping-stone’ that enables you to implement the plans you have for your business and so fulfil your hopes and ambitions as a business owner.

What’s interesting about the Deep Dive Evaluation is that it is the one step in the process that cannot be missed out. In the past, if a deal was urgent and needed to move quickly, on occasions I’ve tried to take a short cut and do a deal without carrying out a full ‘deep dive’.

I’ve learnt the hard way, that those are often the deals where you end up with problems further down the line. Something important hasn’t been checked properly or has been missed altogether.

So, the Deep Dive Evaluation is important, and a crucial component of the Deep Dive that we use every time we work with a client is something we’ve devised called the 4-Point Checklist. Whether you are intending to approach your own bank directly or to use a broker like ourselves this checklist is invaluable.

It will clarify your thinking and help you be clear in your own mind about exactly what finance you need and why.

This is because the 4-Point Checklist identifies the key information that forms an integral part of the overall application process.

In next week’s blog, we’ll go through the 4-Point Checklist in detail so that as part of our Deep Dive Evaluation you’ll know exactly what information you need to have available in support of your application.

Until next week!