How Small Businesses Can Build Financial Resilience in Uncertain Times

2025 may be a year of uncertainty for entrepreneurs across the country. Forbes reports that potential new economic regulations and global market volatility are pressing concerns for small business owners. But while these issues can feel out of your control, the way your business responds is not.

During past recessions, small businesses with strategic planning, lean operations, and a flexible workforce were able to adapt quickly and even thrive amid a struggling national economy. When others are scrambling, a well-prepared business can move decisively. This step-by-step guide can help equip you with the strategies needed to build long-term financial resilience in 2025 and beyond.

Step 1: Assess your financial situation

To make informed decisions for your business, you’ll need a strong understanding of your finances. This starts with effective cash-flow management. Clarity comes when you plan, track, and control the movement of cash in and out of your business. 

In other words, get organized! If you haven’t already, create a separate bank account for your business to avoid any confusion with personal finances. Make sure your invoices are documented and sent promptly to recognize missing payments as soon as possible. Scanning, categorizing, and saving all receipts will paint a clear picture of how much you’re spending and where that money is going.

If you’re feeling overwhelmed, you don’t have to keep track of everything alone. A financial advisor or accountant could be a smart investment for an expert pair of eyes on the data. Apps such as Quickbooks and Quicken are great assets for bookkeeping, and can be integrated with Old National’s Digital Banking for Business tool for a secure and efficient way to manage your business finances online.

Step 2: Trim unnecessary expenses

When your finances are well organized, money drains can start to stick out like a sore thumb. Unused subscriptions and excess inventory are obvious candidates for cost-cutting, but it may be necessary to cut down on more if you’re worried about an economic downturn. Here are a few practical ways to start:

Leverage free or low-cost marketing

Trimming your marketing budget can be a scary proposition, but there are many ways to get your company’s name out there without spending a fortune. Post regularly on social media if you can (primarily LinkedIn, Instagram, X, and TikTok), and track your engagement with the free analytics these platforms offer (such as Meta Business Suite, Twitter Analytics, and LinkedIn Insights). 

Email remains a solid resource for reaching clients. Many companies offer discounts or exclusive content as an incentive for joining their email list, where they can share newsy updates and promotions. If you think your business is doing something newsworthy, you can write a press release and email it to local journalists as well.

To expand your audience, always keep an eye out for potential partnerships and cross-promotions with other businesses.  

Negotiate with vendors

Securing favorable deals with vendors is a key skill for small business owners to cut costs and boost profit margins. Enter the conversation with solid research – compare prices from multiple vendors and understand market rates to make informed decisions and negotiate from a position of strength.

Treating vendors as partners rather than suppliers can help build a strong relationship over time. Businesses often offer discounts for bulk purchases or more favorable payment terms based on their desire to keep you as a client. 

Take advantage of free tools and services

If you're paying for services that offer more than you need, explore free or "freemium"  versions when possible. Many popular platforms provide robust free tiers that are more than enough for small teams. Project management tools like Trello and Asana offer essential features at no cost. Mailchimp and Brevo are email marketing tools that can send and track campaigns without a paid plan. The free version of Canva provides basic graphic design features and templates for polished presentations and social media posts. 

Consider doing a trial run by temporarily downgrading your plan to evaluate whether your team can operate smoothly without premium features. If not, you can always upgrade again later.

Step 3: Get flexible

During economic turbulence, a versatile and dynamic workforce is essential for adjusting to changes in demand or cost pressure. Businesses using on-demand labor — freelancers, part-timers, cross-trained employees — generally fare better in recessions than those locked into rigid staffing structures. 

Take a look at your monthly operations. Do any tasks fluctuate in demand? If there are seasonal sales, event-based work, or temporary assignments, consider outsourcing those to freelancers who won’t be on your payroll after the work is complete. 

If possible, work with temp agencies that specialize in your industry to fill positions quickly during peak seasons. Eventually, the goal should be to build a roster of trusted freelancers and contract workers you can call when needed.

Step 4: Eliminate SPOFs

SPOFs, or single points of failure, are individual components of a business that can cause the system or project to fail if they are compromised. A SPOF can be a key employee, supplier, server, piece of equipment, or process. Economic recessions can put pressure on these vulnerabilities and threaten to disrupt operations entirely. 

As the saying goes, don’t put all your eggs into one basket. Exploring different sales channels can diversify your revenue streams — for example, a brick-and-mortar business can offer online sales to significantly reduce its reliance on local foot traffic. Another way to keep business flowing when supply chains are disrupted: Establish relationships with multiple suppliers so you're not dependent on a single source for inventory or essential services. 

Flexibility in the workforce is helpful for combating SPOFs as well. Versatile employees or contract workers can step into different roles and keep operations running smoothly when team members are unavailable.

Step 5: Stay informed

Turbulence isn’t always bad, but failing to prepare for it can be. Businesses that monitor trends and adapt early tend to navigate economic swings better. Set Google Alerts or follow trusted industry newsletters to track economic, legal, and market changes. Keep an eye on how competitors are adjusting their pricing, hiring, and marketing to identify where you can respond faster or smarter. 

Remember: The goal isn’t just to survive the next disruption. It’s to be the business that’s already a step ahead —ready for any challenge. For more resources to strengthen your financial strategy, visit Old National’s Small Business Banking hub or connect with a small business banker for personalized guidance and support.