If you run a business in Montgomery, or most anywhere in Alabama, you know there’s plenty of uncertainty about the economy in 2023. With higher interest rates, unpredictable supply chains and a slowdown in demand, it could be a challenging year. You can’t conquer these challenges alone. If you don’t already have a team of quality professionals to offer advice, it’s time to assemble one. At Valley Bank, we firmly believe that the time to get to know us is before you need a loan or face a big financial challenge where a banker is necessary.
Right now, we are seeing Alabama homebuilders work with their bankers to be more efficient and methodical as they deal with disrupted supply chains and changes in buyer demand. Hotel owners and operators are also leveraging their banking relationships as they deal with higher costs due to inflation. These are just two examples of the many industries where bankers are acting as collaborative partners who provide resources to help businesses achieve their financial goals.
From reviewing business plans to working through cash flow challenges and applying for lines of credit, your banker is a resource to use at all stages of your business journey, not just when things go wrong. Working with a banker consistently and building that relationship is key to being prepared for any financial challenges you face.
With that in mind, here are some tips we’ve given our customers as we help them plan for 2023:
Increase your efficiency.
To adjust for higher rates and uncertainty, you must be clear on what’s most important to your business. Cutting costs and building efficiencies is a great way to combat the costs related to higher interest rates. Don’t wait until you’re facing a challenge to find more ways to trim your expenses.
Find creative alternatives to loans.
Can you expand your business without borrowing money? Your banker is a key resource to help you make this decision. Depending on your industry and the size of your company, there could be government grant programs available to help you grow. The great thing is that some of these grants don’t need to be paid back.
Be flexible and attract good talent.
Today’s workforce is looking for flexibility, so businesses need to be as flexible as they can to attract and retain talent. If it’s possible to offer flexible schedules or some remote work without hurting your company’s performance, consider that option. No matter what you decide to do, be sure you communicate changes clearly while offering employees a chance to give feedback.
Build a relationship with your banker.
We want to help! Getting your banker involved in your business gives them the opportunity to know how you operate, learn your industry and proactively identify financial opportunities for your business. Having a strong relationship with your banker will help set you and your business up for success.
