Smart Business Magazine, November 2019

40 Smart Business Cleveland November 2019 INSIGHTS BANKING FINANCE Aggressive growth How banks can help businesses achieve their goals Through smart planning and a little luck there comes a time in a companys life cycle when it has the chance to aggressively grow To pursue this growth companies may look to add new and growing clients They may add a production line to launch a new product or increase volume Or they may acquire a business Some companies may leverage the momentum to sell or transition the company to new owners When companies are firing on all cylinders when market opportunities and sound creative strategies align its a great time to be more aggressive in their pursuit of growth says Mike Toth president of Westfield Bank Smart Business spoke with Toth about how banks can help businesses achieve their growth goals What supports do businesses need during periods of accelerated growth Companies looking to speed up their growth should spend time re evaluating their client relationships and client makeup Its a good idea to look at the existing client base to ensure there is a higher percentage of growing businesses within their client portfolio If they find they dont have many clients that are growing its highly recommended that the company seek out more clients that are in that mode Many companies are leveraging their banks relationships with accounting firms attorneys and other service professionals as they pursue acquisitions something not a lot of business owners have dealt with to perform valuations and other due diligence processes Access to capital is another need both short term working capital and longer term capital to support fixed asset purchases and acquisitions that are critical to really take full advantage of a window of opportunity What generally tends to slow down business growth One barrier is access to talent Some companies can find themselves in a market in which highly qualified candidates are hard to find which creates competition for truly talented people It can also be difficult for companies to grow when they are unable to get the funding needed to take critical next steps such as servicing a large new client or upgrading equipment Companies that cant access capital can find themselves with missed opportunities How are banks able to help businesses grow and overcome obstacles to growth In order to address those impediments to growth businesses are well served when they network and build relationships with their bank and other service partners Companies should leverage their banker to make introductions to potential partners and maybe counterintuitively their competitors Its not unheard of for competitors to collaborate on certain projects when its mutually beneficial And banks can bridge that gap Banks are also helping companies overcome obstacles in the market by providing capital and making independent insights objective opinions that can give companies a new perspective on the market and their place in it A companys banker can work with owners or executives to help them more accurately predict and plan for future capital needs They can also identify potential pitfalls by leveraging not only their past experience but the wisdom of other clients who found themselves in similar situations What are the best ways for businesses to create strong relationships with their banker Business owners can get the most out of their relationship with their banker by being transparent and communicating regularly Business owners should be explicit about what theyre looking for from their banker Some banks will host networking events which are good places for business owners to make new connections An accomplished banker will get to know a business and through that knowledge provide customized solutions to overcome obstacles and support the companys goals Banks want to see their clients thrive and will find ways to be supportive whether that means help with idea generation networking and building relationships or finding creative ways to build value MIKE TOTH President Westfield Bank 330 661 6119 michaeltoth@ westfield bank com Insights Banking Finance is brought to you by Westfield Bank FOLLOW UP Keep your business growing with services designed with your needs in mind Visit westfield bank com business banking to learn more INTERVIEWED BY ADAM BURROUGHS