Preparing Your Small Business for Economic Uncertainty: Strategies for Success

Home Blog Preparing Your Small Business for Economic Uncertainty: Strategies for Success

Posted On: September 16, 2024 by Peoples Bank of Kankakee County in: business Saving

In an unpredictable economy, small businesses need to be prepared for any challenges that come their way. Economic downturns, like recessions, can have a significant impact on small businesses, especially those without a solid plan in place.

According to a survey by the Small Business & Entrepreneurship Council, most small businesses (61%) have a positive outlook for their own business in 2024, while 71% hold a bleak view about future economic conditions. This leaves many businesses vulnerable to the effects of an economic slowdown. To safeguard your business, it’s crucial to take proactive steps now, with a smart plan, a loyal customer base, and a reliable financial partner like Peoples Bank by your side.

Here are five strategies to help your business thrive, even in tough times:

Build a Resilient Budget
A well-thought-out budget is the backbone of any successful business, serving as a financial roadmap that guides you toward your goals. It’s essential to set clear targets for revenue, expenses, and savings, and to adjust them as needed. Peoples Bank can provide expert advice to help you create and maintain a budget that’s flexible and resilient, with a focus on long-term financial health.
Maintain Healthy Cash Flow
Cash flow management is about more than just keeping money coming in — it’s about ensuring that funds are available when you need them most. During uncertain times, disruptions to cash flow can quickly become major challenges. Diversifying income streams, implementing a robust invoicing system, and keeping a close eye on overdue payments can help maintain steady cash flow. Peoples Bank offers financial tools and services to help optimize your cash reserves and plan expenditures effectively.
Consider a Small Business Loan
In a fluctuating economy, liquidity is crucial. A well-timed business loan can provide the financial cushion you need to bridge gaps, seize growth opportunities, or navigate downturns. However, choosing the right loan is key. Peoples Bank is here to help you secure the loan that best fits your needs, with favorable terms and expert guidance to ensure that you can manage repayments comfortably.
Build Strong Banking Relationships
Your relationship with your bank should be more than transactional — it should be built on trust and mutual support. A reliable banking partner like Peoples Bank can offer tailored advice, beneficial products, and flexible terms, especially during challenging times. We pride ourselves on providing personalized service and support to help your business succeed.
Reevaluate Your Marketing Strategy
In tough economic times, it’s tempting to cut back on marketing, but maintaining your brand’s visibility is crucial. By refining your marketing efforts and focusing on your strengths, you can continue to engage customers, keep your brand top-of-mind, and stay ahead of the competition.

Protect Your Business with Peoples Bank

At Peoples Bank, we’re more than just a bank — we’re your dedicated partner in navigating the challenges of running a small business. Whether you need help managing cash flow, securing the right loan, or adjusting to economic uncertainties, we’re here with a comprehensive suite of solutions tailored to your needs.

Our commitment is to build lasting relationships and provide transparent, reliable support every step of the way. Partner with Peoples Bank to ensure your business is prepared for whatever the future holds!

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account. It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $30 each time we pay an overdraft.
The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

Alternate ways to Opt In/Out or make changes:

By Phone. Our Customer Care Representatives can be reached at 815-936-7600.
By Mail. Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
In Person. Please visit your local office and ask a representative to help you decide which plan is best for you.