The principles apply regardless of the number of employees. Dan learned most of them while having no employees. The first year in business Dan made $50,540,000 in revenue by himself!
Dan Pena made over 300 1 on 1 financial presentations on 5 continents and has been turned down countless times. There is a financial institution that will finance a deal regardless of how “weird” the deal might be.
When a bank opens a new branch that branch has no customers. Dan always got money from the brand new branch because they have the money and they need customers.
Most people are begging banks to give them a loan while the correct approach is to interview the banks. There has never been more money and fewer deals – they are absolutely flushed with cash but most people are not aware of that fact because they never ask!
“If you are not making at least two financial presentations per week you are pissing into a hurricane.”
Dan Pena talks to three bankers per week just to practice even when he is not looking for money.
If you are asking for money that you need for a project today you are wasting your time! You must interview banks for future financial representations rather than seeking for money when you need it more than you need blood in your veins.
The correct approach is to tell them that you are interviewing several banks in order to find the lowest interests and the best chemistry with a bank. Historically through conventional wisdom, we have been told that bankers and lawyers are taboo – nobody wants to negotiate their interest rate on their mortgage. They would rather jump off a bridge than try to negotiate with financial institutions.
Do NOT ever take the financial plan with you in the interviewing process! After you have narrowed down the selection to just a couple of banks, let them know that you are in the process of doing the second round of interview and that they made the cut. After that, send them “the package.”
The package consists of resumes of your dream team, their track record, and the mission statement on a single page – “Our goal is to dominate this industry in this location.”
After the banks have been able to assimilate the package, have another meeting. You are going through a filtering process – at this point, only one or two banks might be interested in you.
Now ask them questions such as – “what kind of services can I expect for my employees, myself, and my directors?” At this point, they might offer season tickets for certain sporting events.
Some banks will not want to go through an interviewing process – do NOT talk to these banks.
Everybody gets turned down for financing – even Dan Pena and Donald Trump. If you have never been turned down, you are not asking for enough money!
The price of education is absolutely nothing compared to the cost of ignorance.
Just think about all the deals, all the money, all the opportunities that you have let slip through your fingers.
To read more about Dan Peña, please visit the following address: https://www.mitjadolinsek.com/dan-pena/.