By: Elizabeth G. Miller, Commercial Banking Team Lead
At First Farmers, we recognize that small businesses are imperative to maintaining the vibrancy of our local communities. These owners and operators have faced countless unforeseen obstacles in recent years, and we commend these entrepreneurs on their tenacity and resiliency while facing those challenges.
As we recently celebrated Small Business Week and continue to face economic uncertainty, we’re outlining some practical solutions entrepreneurs can employ to help them navigate the nation’s economic recovery.
Develop a Contingency Plan
A contingency plan can help small companies proactively prepare for unexpected economic hardships. Business owners should take a step back and gain a big picture of their operations. This will help them identify their banking needs regarding loans, deposit accounts, and products that can serve as added protection.
Create a Realistic Budget
When it comes to creating a budget, it’s crucial to be forward-thinking and realistic. As you begin this process, reflect on where you want your company to be in three to five years. This exercise will help you identify where to scale back and how to adjust to prioritize future needs.
Remember that your budget should serve as a living document rather than a static, tucked-away file. We recommend that small business owners regularly track their budget against their results and get in the habit of knowing where their company stands against their cash management accounts each day.
Use Your Resources
One of my best tips for small business owners is to take advantage of all their resources. As we continue experiencing high labor costs and labor shortages, relying on time-saving tools can help managers offset a lesser supply of physical workers. If your company is new, there are countless resources available through local business incubation centers and entrepreneur centers to help you strategize and get your startup off the ground. There are also national organizations, such as the U.S. Small Business Association, that connect small businesses with helpful resources.
Entrepreneurs can take advantage of business management tools available through their banks. For instance, First Farmers’ customers can utilize our Money Management Dashboard to develop a practical budget, set obtainable goals, and track their progress over time. Customers can access this tool online or download the First Farmers Mobile Banking app.
Develop Strategic Partnerships
Small businesses can significantly benefit by developing strong community partnerships. As First Farmers has been integrated throughout Middle Tennessee communities since 1909, we are firsthand witnesses of how crucial community partnerships are for a company’s longevity and growth.
At First Famers, we work with various strategic partners to help individuals identify the right plan for their unique business model. We do this by being a trusted advisor to our community’s business owners as they develop, implement, and assess their plans. Whether a seasoned small business owner or a new startup trying to navigate today’s economic challenges, we would be happy to meet with you and help identify a plan and the right resources for you.
References to resources or organizations listed in this communication do not constitute or imply endorsement or support by First Farmers & Merchants Bank.
