Back to all articles
View all blog posts under category Financial Education View all blog posts under category Business

Small Business Strategies and Tips for Achieving Financial Goals

August 03, 2022
Running a small business is certainly no small venture. With managing the daily operations and long-term financial goals, establishing a solid business strategy is key for continued success. A part of that strategy is establishing a banking relationship and understanding the fundamentals of business finances in order to build the foundation for growth and profitability.

In a recent Worcester Business Journal (WBJ) webinar focused on small business strategies for businesses, entrepreneurs, and startups, Dave Bennett, Senior Vice President, shared his insights along with other local Massachusetts industry professionals on what it takes to grow a business in a changing financial landscape.

“Business owners choose to partner with Middlesex for the long-term because our experienced team takes the time to understand their needs to create a lending program tailored towards their specific business goals,” said Bennett. “What we see from business owners is that they’re frustrated by long selling cycles and slow pays that make cash tight. They’re very concerned about having to pass on business opportunities and then as they grow, they’re challenged with the need to invest in infrastructure, staff, and production. That's where we come in to help either directly through the bank or through the network that our lenders have developed.”

To achieve financial goals, consider the following insights from Dave:

1. Know your financial statements.
“You want to understand your financials. The income statement will show your revenue and expenses over a period of time. The balance sheet will show your financial condition at any point in time. And then, of course, your cash flow statement, which show your sources and uses of cash.”

2. Your bookkeeping is the foundation of your business.
“It all starts with your bookkeeping and making sure it’s taken care of. It is a grind every day to record your business transactions, and if you do it yourself, it could be quite burdensome. A lot of people outsource that function to get the expertise and actually save their time.”

3. Plan for the future.
“You want to make sure you plan for the future, including budgeting and invoicing. You want to get those invoices out first as quickly as you can. They have to be timely. Make sure you collect those accounts receivable as quickly as possible, because that really is the best source of cash for your business.”

4. Build your business credit.
“Plan with a bank, develop a track record, and then develop your relationship with the banker. That's what is going to earn you some credibility, so as you get into some other challenges that you may face as a business, the bank will be there to help you to the extent that we’re able to.”

When it comes to the bank deciding to work with a small business owner, there are several factors that may be considered:

1. Character, capital, and personal credit come into play.
“We want to see what experience you have, what kind of tangible support you bring to the table, and how much equity you have invested in the business. We'll take a look at the business and that is again, where financials are important. We want to make sure the business has the capacity to repay the debt to meet your goals.”

2. Knowledge equals credibility.
“You have to know your business plan and you have to be able to speak to it yourself. Don't rely on a third party, your CPA, or a business advisor. You need to be able to talk about it.”

3. Be open and honest.
“Bankers don't like surprises. We want to hear the good, the bad, and the ugly. That's the only way we can help you out.”

To learn more about small business lending solutions at Middlesex Savings Bank, contact Dave Bennett at 508-315-5424 or email him at
by Middlesex Savings Bank