By Tom Cleary, Vice President Chebanse Facility
Small business owners understand the need to profitably grow their business. However, many times they are too close to the situation and find it hard to remain objective, consider all the variables, and ask the right questions. This is why small business owners could benefit from turning to trusted, objective individuals who will help with the decision-making and planning process. Many times these individuals are as close as their local community bank.
Help Assessing Your Current Condition
An experienced business banker knows what to look for in financials, planning, and timing, and knows the challenging strategy questions to ask before a business owner makes final decisions. An experienced business banker should start by helping you determine the financial strength of your current business operations. If a business is on less-than-solid financial footing, then the timing may not be right for expansion. However, a good business banker can help business owners understand why the footing is crumbling and more importantly help develop a plan to fix it.
Help Developing a Sound Business Plan
Business growth usually isn’t spontaneous. Typically business growth is the result of a good idea being put into action through an actionable plan. This plan should include what is going to be done, the cost of doing it, how it will be completed (including how it will be financed), the desired timeframe, and a cash flow plan that supports the idea. When expanding your business, every detail of the plan needs to be carefully considered well in advance of the implementation. If not, you may spend a great amount of time, money, and resources crafting an emotionally-charged expansion plan that, in the worst-case scenario, puts the entire business at risk. That’s why it is important to enlist someone to assess and help with your plan before taking action.
There is a seemingly infinite list of consultants, experts, and resources available to small business owners today. The key is finding someone who is knowledgeable, objective, and has your best interest in mind. Business bankers have many years of experience and can help with the writing and review process. Here are some of the ways business bankers can help you with your business planning:
- They will listen to your vision, help you refine your goals, and develop a plan, asking the hard questions and helping you determine the answers.
- They can help you review your financing options and determine the best approach for your business.
- They will work with you on your financial plan and cash-flow projections and help you refine your plan based on your overall needs and goals.
- They can serve as a trusted partner offering practical advice and keeping you up to date on business/industry trends.
- They can introduce you to other experts (CPA, commercial real estate agent, payroll processor, etc.) that can help you effectively manage your business and connect you with community resources for small business development.
Being an entrepreneur means being your own boss, but it doesn’t mean that you won’t need to ask for help from time to time. Business bankers are there to help you and your business succeed. Make sure you are taking advantage of their business expertise to help you achieve your business goals.