The Trinity Process #4: Taking ALL the options into consideration

The Trinity Process #4: Taking ALL the options into consideration

A new project is a very exciting gift – the thrill of a second location, community and employee’s impact, and planning what will the new location look like.  It’s easy to be blinded by the initial idea of a new building – but here’s where we should proceed with caution and ask this critical question – is this the RIGHT project to meet our and the community’s needs?

At Trinity Financial Consulting we see clients who are locked into the idea to build a new structure or acquire a business and haven’t considered all options.  The excitement of a new project has a way for people to get the sequence of events in the wrong order. We have seen clients that have already spent money on land & drawings or agreed to acquisition price & structure THEN try to secure financing to complete the project or acquisition.  Contact Trinity to help you prevent a disaster!

One of the strengths of the Trinity Team is our ability to see multiple options for any project, understand the debt service requirements, analyze the additional cash flow and make sure the final project or acquisition fills the need at a reasonable cost.

Take these two examples in the photo for this article.

Which one is the new construction and which one is a renovation of an existing structure?  Can you tell?

The idea here is to fill the need; whether it’s more space, more capital, additional location, increasing cash flow, David Pack and the Trinity Team will carefully help you consider all the options and cash flow requirements available and review the pros and cons of each.  Our clients make the final decision but with better clarity, understanding and good forecasts for performance.

Here are two examples of multiple options for two very different needs:

An organization needs more space for operations:

  • What areas of town are you considering and why
  • Renovate and expand an existing facility
  • Renting a second location for a period of time
  • Purchase, renovate and expand another facility
  • Purchase land, design and build a new building

An organization needs to improve cash flow without adding a second location:

  • Increase pricing
  • Attract more diverse members or consumers
  • Refinance existing debt and lower payments
  • Examine the budget to see where expenses can be trimmed
  • Change processes to eliminate waste and improve efficiencies

There’s more than a single way to resolve any challenge or meet a need.  Before beginning a large project, make sure that all options have been discovered and analyzed – and pick the best one that fits your needs and budget.

The Trinity Financial Consulting Process: Your Needs Analysis

Good stewardship of resources and implementation of your vision, requires two things be at the center of your planning:
  1. How does the proposed project or need fit into “The Big Picture” of your vision.
  2. Meet the need, but DO NOT over build or over acquire – the resulting financial stress can destroy an organization.

Specific steps in the needs and resources analysis:

  1. Review the Vision and Strategic Plan for the organization. Identify the most important project or projects will move the strategic plan forward at this time.  Can the project be done as a whole, or should it be broken up into several steps?
  2. Review historical cash flow, projected cash flow to understand budget and available funds for a new construction, a possible business acquisition or other projects.
  3. Available equity or cash for down payment
  4. Regulatory Requirements by local authorities (environmental, building codes, zoning, licensing, etc.)
  5. New revenue generation strategy to offset new expenses
  6. Look for synergies with suppliers & customers for added efficiencies and lower cost per customer.
  7. Real Estate Options
      • Space Needs- Now and in the future
      • New facility – expansion, acquisition, new construction
      • Remodel existing facility
      • Financing Options – (Availability of Money, Structure, Flexibility & Interest Rate)


An effective analysis of resources and needs will be instrumental in moving your strategy forward toward the ultimate vision for your organization.  This analysis keeps your leadership team on track and establishes the common goal (the mission) for all team members to executive from the leadership team down to individual contributors.

Trinity Financial Consulting leads our clients through this process with expertise.

The Vision to the Future: A step by step process of creating a path to your passion

A business is a living entity that entrepreneurs bring to life.  It grows, it falls and skins its knees, gets lost and finds the right path again.  The SINGLE most important thing you take on your journey of raising a business or organization of any kind is the VISION.

At Trinity Financial Consulting we appreciate the power of the entrepreneur’s Vision, and the first step in the process of identifying the right financial path is to make sure it is in alignment with your goals, convictions and dreams.

The following questions are the starting point for the process of identifying your vision from this point in your journey.

1)     Tell us about the beginning.  By this we mean the VERY beginning, what was the idea, concept, driving force that caused you to take the risky yet satisfying step of creating a business?  Write it down if it’s helpful.

a.     What did the first days look and feel like?

b.     What drove your decisions?

c.     What items have been manifested?

d.     What item(s) have been a struggle to implement?


2)     If you take that dream to its ultimate – if money and resources were no obstacle – what would your business or organization look like?

a.     How many customers/clients/members would you serve?

b.     Would you have multiple locations?

c.     How many employees? What would your leadership team look like?

d.     What would clients and friends talk about when they speak about your organization?

3)     Now look at where you are today.  How far from that very beginning are you?  What steps did you take to get there?  As a new business you made decisions about the name, location, product and service offerings, you made a business plan.  It’s time to do that again, but from where you are today, and identifying key strategic points on the path to that ultimate vision.  Those strategic points could be increasing current product development, new products & solutions, new online platform or new partners?  Don’t leave anything out – it’s easier to combine steps than add them in later.

4)     The fourth step is to break down the path to the next major strategic milestone.  What do you need?  What potential obstacles might be faced?

Once you’ve completed the above steps – and it won’t be easy (but then, what value would it be if it was?), finish off by carefully documenting your passion, your plans, your ultimate vision and sharing it with your team.

This work is a valuable part of creating the business organization that you dreamt of when the idea first came to you so let us help you fulfill your dreams & passion.

The Trinity Process: Visioning Success

The key to successfully helping you meet your Financial Goals, whether it’s a new construction, a refinance of existing debt or purchasing a new facility, is to follow the Trinity Process.  This article introduces that process and in the coming months, we’ll delve deep into each step, helping you understand its importance, and how it fits into the overall project.
Our first job is to listen and understand your Vision for your organization.  We firmly believe that if you can name it, you can claim it (achieve it).  Understanding where you’re going, and seeing the end result is where every dream and calling begins.
Then, we follow the following steps:


  1. Review session to understand current & future needs and how they fit in with your Vision.
  2. Understand your financials, cash flow, and borrowing potential
  3. Stewardship: Count the cost of each phase including eventual ongoing expenses.  Implement a savings program.
  4. Analysis of ALL available options.
  5. Careful planning –> Then Spring into Action! (Save You Time, Money and Energy)
  6. Proper and orderly sequence of events – don’t put the roof on, before building the walls.

The Naked Truth

Understanding the Complexities of Obtaining Commercial Capital

I worked in commercial banking for 27 years and have created a company, Trinity Financial Consulting, to help Business Owners, Churches and other organizations to access & obtain commercial capital to finance acquisitions, partner buyouts, expansion and refinances.  It may be easier for me to help you understand this difficult and moving target (rules) by dividing the article into two parts, The Bank and The Borrower.

First the Banks.  The big banks have been required to operate differently since the 2009 financial crisis because government mandates.  The mandates are to prevent bank failures similar to those in 2009 through 2011 which created such economic disaster.

Below are two very important guidelines to help you be successful in finding the right lender for your company and project:

  1. Seek lenders that specialize in your industry type.

Banks in your industry will be familiar with the numbers (Risk, Default, Returns and Losses)Every bank specializes in certain areas and stays away from other areas.

  1. Seek multiple lenders

Every bank has approved credit policies and will vary from lender to lender.

Credit Managers at those lenders will vary from being extremely conservative to more liberal (90% of all credit managers are conservative people by nature, it’s a matter of how conservative).

These two ideas are important because the government dictates the following areas for the banking industry:

  1. Limitation on Commercial Loan Portfolio

Every bank has limits by industry type on their loan portfolio balances

  1. Bank Size & Lending Sweet Spots

Bank’s value in assets have a direct correlation to the amount that they can legally provide loans for (i.e. JP/ Chase Bank – Trillion dollar bank loan limits maybe $1B and your local community bank maybe to loan out $5,000,000 because their assets total, $500,000,000).

As a borrower, you can help influence the credit decision of the lender by keeping your financial house in order.  Pay attention to all the areas below to make sure your project receives the most competitive lending offers possible.

  1. Accurate and Timely Financial Reporting (Good consistent CPA statements & Tax returns add creditability)
  2. Building & Maintaining Cash Reserves
  3. Understanding and Providing Cash Flow Analysis
  4. Providing Financial Forecasting (Balance Sheet, Income Statement and Cash Flow)
  5. Provide Corporate Ownership Structure Flow Chart and Bring Some Financial Stability for Emergencies.