How To Prepare Your Business for Economic Headwinds

Being a small businesses owner requires resiliency and adaptability to face challenges of all kinds. While optimism remains, many owners are still navigating the complexities seen in the headlines throughout 2025 including inflation, fluctuating consumer demand, and a tight labor market. These disruptions can feel overwhelming, but they also create opportunities for businesses that are prepared to adapt and invest responsibly.

Recent data reflects this dual reality. At the beginning of 2025, our WSFS Small Business survey showed high optimism from business owners. However, the National Federation of Independent Business (NFIB) reported a steady but not exuberant optimism.

Current Climate Considerations

From a macroeconomic level, we are in what we call a “K-shaped economy” meaning there’s a bifurcation of the consumer. Higher income households are continuing to spend on travel, dining, and services while lower income consumers are stretched by higher borrowing costs and reduced savings. This is leading us to an economy that is slowing, not stalling.

As part of this current climate, businesses are seeing supply chain and hiring challenges, and a U.S. Chamber of Commerce report places inflation as the top concern for business owners. All this has led many businesses to hold off on capital investments until rates and costs stabilize.

In this environment, having a strategic advisor isn’t just a benefit—it’s a necessity. At WSFS Bank, we understand the changing economic landscape and evolving needs of running a business. And with nearly 200 years under our belt as an organization, we have seen it all. Our goal is to provide the guidance and tools needed to not only weather the disruption but also to find and seize opportunities for growth.

Strategies to Build Resilience and Drive Growth

As you position your business for the future, there is a lot of pent-up demand to support business growth and opportunity. Doing it responsibly requires a solid financial foundation.

• Master Your Cash Flow: Effective cash flow management is the bedrock of business stability. It provides the clarity needed to make informed decisions, whether that’s managing payroll, purchasing inventory, or investing in new equipment.
• Secure Flexible Financing: When opportunity knocks, you need to be able to answer. Having access to the right financing can be the difference between seizing a growth moment and being left behind. Whether it’s a line of credit for cash flow needs (seasonal or otherwise), equipment financing to upgrade your technology, or an SBA loan to purchase inventory, the right financing tool can be transformative.
• Plan for the Future: Retirement and succession planning are critical, yet often overlooked, part of your business’ lifecycle. Often, the reason for the transfer falling apart is due to a lack of a formal plan. Working with an advisor can help you create a clear roadmap for both retirement and business transition, ensuring the legacy you’ve built continues for generations to come.
• Leverage Expert Guidance: You don’t have to navigate these challenges alone. That’s what our team of trusted advisors is here for, to offer guidance and support, so your experience as a business owner is smoother.

Market disruptions are constant, but your response to them can define your future. By focusing on the bigger picture and staying strategic with the help of expert guidance, you can build a more resilient and successful business. Connect with our WSFS Business Banking Associates to discuss how our balanced approach to service, technology, and products can help you navigate the current market and position your business for long-term success.

BY ANDREW DAVIS, CFA® Andrew Davis leads a team that analyzes broad economic trends and factors…