An MSME Story: Horizon Bank's Recipe for Success

Source: Siebe Warmoeskerken: Unsplash

Maria Petrescu sat at her small but bustling bakery, La Dulce Traditie, in Bucharest. Maria had started her home-based pastry business two years ago; it was her passion from an early age to bake and it had been a great success.

When a bakery space became available on a busy street in an affluent suburb after the previous owner retired, she seized the opportunity and moved her business into the storefront. With growing demand, she needed to hire more staff, upgrade her equipment, and explore digital payment solutions to serve her customers better. She currently had two part-time staff who helped in the shop, but as the business grew, she was considering hiring full-time employees.

Yet, despite her initial success, managing cash flow, securing funding, and navigating the complexities of business banking remained daunting challenges. Maria was also planning for her and her family's future in line with the business, considering how she could create financial stability and long-term security for them.

Maria primarily sold her products through foot traffic but wanted to offer customers the opportunity to pre-order birthday and seasonal cakes and pastries via a website for collection. This would help her better predict what she needed to bake and widen her customer base.

Maria had always banked with Horizon Bank for her personal accounts, but she wasn't sure if they could support her business needs. She also hadn't yet prepared a formal business plan or cash flow documents, which made it difficult to plan for growth and secure funding. She had heard mixed messages from other small business owners, some found their banks helpful, while others struggled with rigid processes and a lack of personalised advice. She needed more than just a loan: she needed a financial partner who truly understood her business and could offer solutions tailored to her growth. She was an experienced baker but was particularly concerned about managing the financial and bookkeeping side of her business. With more supplier invoices, tax obligations, and employee wages to handle, she found it increasingly difficult to keep track of everything efficiently.

The Bank's Role

Enter Alex Ionescu, a Business Banking Relationship Manager at Horizon Bank. His job was to support businesses like Maria's, ensuring they had the financial tools and support to succeed. However, Alex knew from his specialist business training and experience that simply offering a generic suite of banking products wasn't enough. To truly add value, he needed to listen to Maria, understand her motivation, business model, and anticipate her needs.

When Alex visited Maria at her busy store he took the time to watch how it operated and to ask insightful questions, such as:

"What's your biggest business headache right now?"

Alex asked Maria what was causing the most stress in her business. Was she struggling to keep up with customer demand? Did she need more staff? Was it hard to balance quality and efficiency? Were any supply delays causing problems? Once he understood her pain points, he could suggest solutions like financing options to hire help, digital tools to track orders, or ways to run her business more smoothly.

"How do you keep track of your money?"

He wanted to know how Maria managed her income and expenses, which was still going through her personal bank account. Did she use spreadsheets, write things down manually, or have a clear idea of her costs? For example, did she know exactly how much each batch of pastries cost to make, including ingredients and labour? If not, he could recommend bookkeeping software or a better payment system to help her stay on top of her finances.

"Where do you want your business to go in the next few years?"

He asked about Maria's future plans. Did she want to expand her store, add new products, or open more locations? Maybe she wanted to boost online sales or start a customer loyalty program. Knowing this, Alex could suggest the right support, whether it was a business loan, marketing advice from experts, or eCommerce or business management tools to help her grow.

"Do you use any apps for your business?"

Finally, Alex asked Maria if she used digital banking tools. Did she track invoices online, use mobile apps for payments, or manage her finances through a banking platform? Was she open to learning new tools that could make her bookkeeping and cash flow easier? This helped Alex understand how much support she'd need to move toward digital solutions.

By understanding Maria's business at a deeper level, Alex could offer tailored recommendations. He also discussed how Horizon Bank could support Maria's plan to introduce pre-orders by providing digital banking solutions, such as an integrated online payment system and business website support, ensuring a seamless and secure transaction process for her customers.

He informed Maria that Horizon Bank provides templates and tuition through their workshops to help business owners prepare and use essential planning and management tools like business plans and cash flow statements.

Instead of just suggesting a loan, he introduces her to Horizon Bank's MSME Growth Package, a solution that included a flexible credit line to improve the business' working capital, a point-of-sale system integrated with real-time cash flow analytics, supporting both in-shop and eCommerce transactions, enabling Maria to accept debit and credit card payments (improving convenience for her customers and increasing sales potential). The package also provided access to financial literacy workshops tailored for owners of start-up and growing small businesses. Recognising Maria's bookkeeping concerns, Alex also highlighted the package's integrated bookkeeping tools, which could help her manage supplier invoices, tax filings, and employee wage payments more efficiently, ensuring smoother financial operations as her business expanded.

Additionally, Alex introduced Maria to Horizon Bank's Business Growth Workshop Program, an on-demand video learning platform created by business experts and the bank's financial advisors. The program also included dedicated sessions on eCommerce, helping business owners like Maria understand how to set up an eCommerce website, online sales channels, manage digital payments, and optimise their web presence for growth. These workshops were designed in conjunction with experienced business owners who\d been in Maria's shoes, featuring:

• Practical financial modules on budgeting, managing debt, and optimising cash flow;
• Business growth strategies tailored to MSMEs, including customer acquisition and digital marketing;
• Practical advice such as the legal implications of employing people and business formation regulations;
• Industry-specific case studies and success stories from other businesses of similar size;
• Interactive Q&A sessions with business experts and peer discussion forums.

By participating in these workshops, Maria could learn at her own pace, gain actionable insights, and connect with a community of fellow entrepreneurs facing similar challenges.

Maria's Success and Horizon Bank's Impact

With Horizon Bank's tailored support, within two years Maria was able to grow her bakery business and manage increasing complexities efficiently. The bank's customer-centric approach provided her with a working capital loan aligned to her anticipated seasonal sales, digital payment solutions to streamline transactions, and integrated bookkeeping tools to simplify her bookkeeping and paying her suppliers, employees and taxes. Through the bank's financial workshops, Maria gained valuable insights into budgeting, expansion planning, and cash flow management, giving her confidence in these matters and setting a solid foundation for future growth.

By listening to Maria's needs and providing personalised solutions, Horizon Bank deepened their relationship, gaining her trust and loyalty. Maria often advised potential new business owners who she met to contact Alex for that important insight and guidance. This successful partnership not only helped Maria sustain and scale her business but also positioned Horizon Bank as a trusted partner for future collaborations with other MSMEs.

Key Takeaways:

• Understanding MSMEs' unique challenges and goals is crucial for banking success;
• Proactive engagement and needs-based solutions drive customer satisfaction and business growth;
• Digital banking tools are essential in empowering MSMEs to scale;
• Integrated bookkeeping solutions help MSMEs manage financial complexity;
• Financial literacy and business education are key to supporting MSME growth.

This case study shows how Horizon Bank's customer-centric approach helps MSMEs thrive, building lasting relationships and ensuring long-term success for both parties.