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      For Your Small Business Nelson Tepfer June 3, 2025

      Financial Agility Is Your Competitive Advantage

      In a world of uncertainty, the ability to make quick and insightful changes can make a big difference.

      Economic turbulence is not a new phenomenon, but today’s business landscape feels uniquely unpredictable. 

      Tariff fluctuations, supply chain disruptions, and fast-changing trade policies are all contributing to an increasingly volatile environment for small and mid-sized businesses. According to The Wall Street Journal, many businesses are responding by cutting costs, delaying hiring, or pausing their growth plans altogether. 

      This instinct is understandable — but not always strategic. In times of uncertainty, survival often depends less on size or capital and more on the ability to move quickly and make decisions with clarity. 

      This is where financial agility becomes a true competitive advantage. 

      What financial agility actually means

      Financial agility is not about winging it or acting on instinct. It is about creating the systems, insights, and leadership capacity to adapt intelligently in real time. It means understanding the story your numbers are telling you and having the structure to act on that story. 

      It involves: 

      • Scenario planning: Modeling different “what-if” outcomes helps business leaders understand how variables like tariffs, cost increases, or delayed receivables might impact profitability and cash flow. 
      • Dynamic forecasting: Rather than treating budgets as static, agile companies revisit forecasts monthly (or more frequently) to reflect current conditions and emerging risks. 
      • Decisive cost strategy: Cutting costs is easy. Cutting costs strategically is harder. Financially agile companies know which expenses support long-term goals and which are short-term luxuries. 

      Real-world examples 

      Consider a branded merchandise company that faced rising costs due to tariffs on Chinese imports. Rather than react blindly, they used a rolling 12-month forecast to test various pricing strategies. With real insight into margin impact and customer sensitivity, they raised prices incrementally — and retained their core customer base. 

      Another company, a stationery manufacturer, proactively shifted sourcing from China to Vietnam, reducing tariff exposure from 80 percent of their supply base to just 50 percent. While some competitors were paralyzed by uncertainty, they had already mapped alternatives and moved decisively. 

      Even basic cash flow management can reveal opportunities. One small business revised its invoicing process, added new collection checkpoints, and renegotiated payment terms with key vendors. These changes unlocked enough working capital to buffer against shipping delays and supplier cost spikes. 

      These businesses did not have more money, more people, or more resources than others. They had more readiness. 

      The hidden cost of inaction 

      A survey by Vistage Worldwide, cited in The Wall Street Journal, found that small business confidence has declined sharply. More than 40 percent of business owners believe conditions have worsened, and a significant number said they are unsure how tariffs are even affecting their bottom line. 

      That is the crux of the issue: Many businesses are not lacking in courage or creativity, they are lacking in clarity. 

      And without clarity, hesitation becomes the default. Opportunities are missed. Competitors pull ahead. 

      Strategic leadership is essential 

      Financial agility does not happen by accident. It requires leadership that is forward-looking, analytical, and decisive. Not just someone to close the books, but someone who can say, “Here is where we are, here is what could happen, and here is what we are going to do about it.” 

      This might mean bringing in outside expertise, investing in better forecasting tools, or creating more structured decision-making processes internally. The specific approach will vary — but the need for strategic financial leadership is universal. 

      Final thought: You do not need certainty — you need agility 

      There is no perfect market condition. No ideal time. No risk-free path forward. But there are better-prepared businesses and less-prepared ones. 

      Those who invest in visibility, adaptability, and financial foresight today are not just surviving, they are positioning themselves to lead tomorrow. 

      Connect with an Old National Small Business Banker for more insights to help your business grow.

      This article was written by Nelson Tepfer from Inc. and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.

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