According to the Minnesota Chamber, research consistently shows that startups are key drivers of job growth and innovation, despite their relatively small share of total employment. For instance, in Minnesota during 2019, new employer firms in their first year represented only 2% of employment but were responsible for 17% of the state’s gross job gains. When considering firms in their first five years, they contributed over 27% of all new jobs, clearly underscoring the outsized impact of young businesses on economic dynamism and the importance of fostering a supportive environment for entrepreneurial success.
At Security Bank & Trust Co., we’ve worked alongside Minnesota business owners for decades, helping them access tailored banking solutions that fuel long-term success. It's why we have been recognized as one of the Best Banks in Minnesota. Whether you’re launching a startup in Minneapolis’s booming tech sector or expanding a retail presence in the Twin Cities, choosing the right financial strategies is crucial. This guide breaks down nine proven banking strategies—backed by real-world examples—to help you optimize cash flow, secure financing, and position your business for sustained
Your bank isn’t just a place to park money—it’s a partner in your success. Here’s what to prioritize when picking a Minnesota bank:
Local Expertise: Community-focused Minnesota banks like Security Bank & Trust Co. get the state’s economic pulse—from agriculture in and around McLeod County to manufacturing in Cambridge—offering insights big banks often miss.
"Don knows our business. It's unique and specialty so it's important we have someone who understands our business." Craig Hrkal - CEO Cellular Concrete, Inc. & Lightweight Distributing Company
It's important to understand how business transitions not only from business cycle to cycle but also from generation to generation.
Business-First Services: Seek out checking accounts, loans, treasury tools, and merchant solutions designed for entrepreneurs.
Relationship-Driven Support: A banker who knows your story can unlock better loan terms or spot opportunities others overlook.
Does your banker understand what your business does and what your challenges are in the current environment? Often times there are opportunities and programs that are potentially not well known. We've covered some of these in our Ultimate Guide to Minnesota Business Loans.
Pro Tip: Book a sit-down with a banker from a top Minnesota bank to map your growth goals—bring your vision, and see how their toolkit aligns.
A smart banking setup is like a well-oiled machine. Try these:
Keep It Separate: Split business and personal funds for cleaner books and stress-free tax prep.
Multiple Accounts: Use one for daily expenses, another for payroll, and a rainy-day fund if that will help you manage cash flow.
High-Yield Savings: Stash surplus cash in a high-yield savings account to earn interest while staying liquid.
Pro Tip: Set up auto-transfers to divvy up funds effortlessly—think of it as paying your future self first. Review our Guide to Treasury Management to understand all the tools available to manage your accounts.
Cash flow keeps your business breathing. Here’s how to strengthen it:
Track It Closely: Use tools like Quickbooks, Xero or your bank’s app to monitor inflows and outflows in real time.
Invoice Like a Pro: Send bills fast, add a “Pay Now” button, and set 15- or 30-day terms.
Stretch Vendor Terms: Negotiate 45- or 60-day payments to keep cash in your pocket longer.
Line of Credit: A flexible credit line cushions lean months—like winter slowdowns we often see in the Minneapolis - St. Paul Metro Area.
Pro Tip: There are many tools, including AI tools, that provide a small business with opportunity to manage their finances not only automatically but with insight and guidance. Sweeps on your checking accounts is one low maintenance way to increase earnings without increasing workload.
Need capital to expand? Know your options with Minnesota examples:
SBA Loans: Competitive rates and longer terms—JAM Hops Gymnastics used a SBA loan from Security Bank & Trust Co. formerly, Flagship Bank Minnesota, to finance an expansion to support its growth.
Term Loans: Fixed rates for big buys—think a Glencoe storefront or new equipment.
Lines of Credit: Dip in for working capital—like during a supply chain snag.
Commercial Real Estate Loans: Buy or refinance property to anchor your Minnesota footprint.
Pro Tip: Chat with a banker from a leading Minnesota bank—say, one versed in Twin Cities biotech—for a loan that fits your trajectory.
Smart credit tools boost flexibility and perks:
Business Credit Cards: Track spending, earn cashback on fuel or ads, and build credit history.
Merchant Services: Accept cards to woo customers—vital for retail near the Mall of America.
ACH & Wires: Streamline payroll or supplier payments with digital precision.
Pro Tip: Pick a card from the best bank in Minnesota that matches your habits—like no foreign fees if you’re eyeing Canadian suppliers.
Don’t let fraud sink your ship. Safeguard with:
Multi-Factor Authentication: Lock online accounts with passwords plus codes.
Real-Time Alerts: Get texts for odd transactions—like a sudden $10K withdrawal.
Internal Checks: Limit account access and audit monthly.
Cyber Defenses: Train staff to spot phishing—critical for Minnesota’s 6th-ranked patent-per-capita innovation.
Pro Tip: Security Bank & Trust Co., a standout Minnesota bank, offers Positive Pay with Payee Match to flag mismatched checks before they clear—stopping fraud cold. It's a simple insurance check to keep your money safe that every business should use.
Minnesota’s startups and growing companies—from Duluth docks to Twin Cities tech hubs—thrive when banking works smarter, not harder. Optimize your cash flow, lock in the right financing, harness digital tools, and lean on a trusted Minnesota bank to build a business that lasts. Don’t let a shaky financial foundation hold you back—partner with the best bank in Minnesota, Security Bank & Trust Co., and take charge today.
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