Business owners: 3 areas to focus on in a turbulent economic environment
While businesses need consistency and predictability to achieve success, today's turbulent economic environment that is creating uncertainty and turmoil is not a new scenario for many New York City businesses, organizations and their leadership. Companies have been dealing with massive fluctuations in the economy for many years — before and since COVID-19 — including banking crises, changes in legislation and supply chains.
The current tariff crisis has been incredibly difficult to navigate due to the intensity and speed at which conversations can change on a daily or weekly basis. While all organizations will be indirectly impacted, there are certain sectors that, in the short term, are dealing directly with the impacts of the tariffs and other actions from the administration. Manufacturers, distributors, retailers and the construction industry face the uncertainty of price, supply and restocking, while the nonprofit sector's clients and connected organizations have real concerns about funding and viability. Again, these are short term issues with the potential for long term consequences.
There is however, optimism. In a survey of middle market businesses conducted by Valley Bank at the end of last year, 90% of the respondents were expecting 10% growth this year despite their expressed concerns about geopolitical tensions and trade policies, technological innovation, supply chain issues, interest rates/inflation/consumer spending and wage pressure. Now, just a few months into the year, these concerns have become reality with pundits talking about higher inflation, slower growth and a potential recession. The concept of stagflation has been resurrected.
While it is difficult to predict the future (near or long term), owners and leaders should be proactive in taking steps to navigate this challenging time. The most successful companies are the ones that plan for turbulent times, are resilient and can adjust to the environment quickly in terms of investing in technology, personnel and retaining their client bases. Companies have to be ready for anything. Historically, just when the operating environment is poised for a smooth ride, something new causes disruption.
It is critical to understand how your business will be affected by the current environment and determine what you can do to anticipate the impact. To manage in this time of uncertainty, you hope for the best but plan for the worst-case scenarios, including recession. Businesses should update or create a playbook to use as a guide to ensure you are taking the right steps to achieve success. Areas of focus can include:
1. Leadership. Strong and thoughtful leadership is essential to navigate uncertain and turbulent times. Your customers and employees are relying on leaders to set the strategy and tone. Have an open-door policy for your employees, be empathetic and listen to their concerns. Relationships are critical, and now more than ever, you should communicate frequently with your customers and clients. Keep in close contact with community partners and vendors, especially those overseas, to work out risk-sharing agreements. Talk with your banker — be honest and keep them apprised of your situation — both positive and negative. Banks are here to manage problems, but do not like surprises.
2. Planning. Show the ability to pivot, be innovative and evolve your business model. Look at ways to reimagine your business, including expanding into new segments, such as adjacent industries. Identify new services you can offer that differentiate you from the competition. Think back to how you managed during COVID and see what you can do to replicate that now.
3. Cash and expense management. Proactively evaluate and manage expenses — look at where you can cut costs without negatively impacting the business and see what you can domestically source. Stay on top of your 12-24-month expenditures and strategically restructure costs now, but be careful not to eliminate key people or services essential to maintaining growth. Diligently manage liquidity and the balance sheet, staying focused on customers. Refocus and establish best practice cash management in advance of a potential downturn. Integrate cash flow forecasting into profit and loss outlooks and scenario modeling. Streamline processes and automate to become more scalable for growth. If you do not have a line of credit, consider applying for one before you need it.
No one has a crystal ball to predict how long the uncertainty will last, but companies and organizations that take steps to plan and navigate the turmoil have the best chance to thrive. The good news remains the resiliency in the American economy and the grit of many New York City firms to survive and thrive.
As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with nearly $62 billion in assets. Valley operates convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California and Illinois and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. To learn more about Valley, go to valley.com.
© 2025 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
Douglas Meyer is regional president of New York City Commercial Banking and is responsible for executing the bank's growth strategy to broaden its commercial and industrial practice.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Artists who got almost $1,500 a month under a basic income pilot say their work improved
Ireland's basic income pilot program for the arts ends in August. For three years, 2,000 artists and creative arts workers received about $370 a week. Recipients said the stipend overall improved their daily lives. For about 2,000 artists and creative arts workers in Ireland, a weekly stipend provided through a basic income program has been a lifeline for years. Now, it's almost over. The pilot program began in 2022 under Catherine Martin, Ireland's former minister for tourism and culture. Martin allocated about $28 million to the arts sector following the COVID-19 pandemic. Participants were randomly chosen and given an unconditional stipend of €325, or about $370, weekly for three years. During that time, participants met periodically via Zoom to discuss how the additional income had affected their livelihoods, careers, and ability to meet basic needs. The final session was held this month before the program's conclusion in August. Artists and cultural workers who attended the session grappled with what their lives would look like after August, but they hoped government officials would extend the program. "We need no further pilots. People need a UBI now to face and deal with the many social, economic, and ecological crises of our world," Reinhard Huss, the organizer of UBI Lab Leeds, which sponsored the event alongside Basic Income Ireland, UBI Lab Arts, and UBI Lab Network, told Business Insider. New developments in AI are reshaping the job market, replacing some entry-level positions. Tech industry leaders like Elon Musk and OpenAI CEO Sam Altman have said implementing a universal basic income will be essential in the near future when AI supplants jobs in most industries. A universal basic income offers an entire population recurring, unconditional payments regardless of an individual's socioeconomic status. Ireland's program, like many others in the United States, is a guaranteed basic income, which targets certain segments of the population for a set period of time. Jenny Dagg, a sociologist lecturing at Ireland's Maynooth University, authored a new report that provides insights into participants' reactions to the program. She gathered data from over 50 of the 2,000 recipients. Although the report outlined nearly a dozen key impacts reported by program recipients, Dagg highlighted five major takeaways during the Zoom session. Dagg said that recipients who received money from the program reported more stability and "significantly reduced" financial stress. It relieved their anxiety about fulfilling their basic needs. Participating in the pilot program also allowed artists to re-prioritize how they spend their time and what they choose to focus on. "The opportunity to focus more on their specific creative interests opened new possibilities and career trajectories," the report said. Artists said the added income allowed them to spend more time "researching, experimenting, taking risks, and failing," which has improved the quality of their work. Artists, the report said, also felt more confident in themselves and their work during the program. "Many recipients talk of feeling empowered, of being in control of the choices within their lives, and envisioning a viable career path longer-term," the report said. Recipients even reported better mental health, which led to improved sleep quality and lowered stress levels. With the end of the program fast approaching, recipients of the weekly payment are reckoning with what how their lives might change. "Across art forms, recipients report concerns about financial stability and sustaining the momentum of their careers when, or if, the basic income scheme ends," Dagg's report said. This month, Basic Income Ireland called on the government to immediately implement a universal and unconditional basic income for the country. A spokesperson for the UBI Lab Network said the pilot program's success shows that basic income is a viable option. The campaign group shared a proposal for introducing a universal basic income to Ireland. "As the pilot shows, basic income works and people need a UBI now to face and deal with the many social, economic, and ecological crises of our world. The Network will continue to help demonstrate basic income within communities and show how it is a sustainable policy," the statement said. Patrick O'Donovan, Ireland's minister for arts and culture, said he would evaluate the data collected throughout the pilot program and create proposals for the government regarding the next steps. "I am heartened by the responses of the Basic Income recipients in this paper," O'Donovan said in the May report. "This research will add to the evaluation being conducted by my department, which to date clearly shows that the Basic Income Pilot has been an effective support for the artists in receipt of it." Read the original article on Business Insider
Yahoo
2 hours ago
- Yahoo
Hispanic Heritage Council receives $7M for construction of cultural institute
BUFFALO, N.Y. (WIVB) — The Hispanic Heritage Council of Western New York will receive $7 million from New York State to complete the construction of its cultural institute on Buffalo's West Side, Gov. Kathy Hochul announced Sunday. The council's plans for the multi-use 37,000-square-foot facility on the corner of Niagara and Hudson Streets was first announced in 2019, but it has since faced delays due to COVID-19. Hochul described the investment as a 'gap-filling' initiative for phase two of the institute, which will serve as a hub for Hispanic history, arts and community. The $30 million facility broke ground in September 2023 at the beginning of Hispanic Heritage Month. The council plans for the institute to house a museum, 150-seat performing arts theater, event spaces, cafe, media center and learning labs. 'We are deeply grateful to Governor Hochul for her unwavering support of the Hispanic Heritage Cultural Institute. This historic investment is not just a milestone for the Buffalo Hispanic community — it's a gift to all of Western New York,' said Casimiro Rodriguez, the council's president and founder. 'As the first of its kind, this institute will serve as a vibrant hub for arts, culture, education, and heritage, drawing visitors from near and far, including our Canadian neighbors. It will enrich our region's cultural landscape and strengthen our identity as a welcoming and diverse community. The future is bright, and we are filled with hope and gratitude as we take this giant step forward together.' Hochul said the previous announcement in 2023 of a $5 million grant, along with additional funding, will continue to help with the completion of the project's second phase and grand opening. 'New Yorkers of Puerto Rican heritage have been an integral part of our state's cultural fabric for generations,' Hochul said. 'We are honored to make bold investments that will empower organizations to expand and thrive, ensuring that the vibrant presence of Puerto Rican culture in New York State remains a cherished aspect of our state's identity.' The council also received $1 million in federal funding in August 2023 for construction. Katie Skoog joined the News 4 team in April 2024. She is a graduate from the University at Buffalo. You can view more of her work here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
3 hours ago
- Yahoo
A New Social Security Garnishment Is Set to Begin This Summer -- but There Are 2 Legal Ways Most Retirees Can Avoid It
Getting as much as possible out of Social Security isn't a luxury for most retirees -- it's an absolute necessity. This summer, the Trump administration will begin garnishing up to 15% of Social Security benefits for delinquent federal student loan borrowers. Two perfectly legal solutions exist that may allow a majority of tardy federal student loan borrowers to avoid having their Social Security checks garnished. The $23,760 Social Security bonus most retirees completely overlook › For most retirees, Social Security isn't just income that's deposited into their checking or savings account on a monthly basis. It represents a financial lifeline that many would likely struggle to make do without. In 2023, Social Security was responsible for lifting 22 million people above the federal poverty line, some 16.3 million of whom were adults aged 65 and above. Meanwhile, 23 years of annual surveys from national pollster Gallup find that up to 90% of retirees require their monthly benefit, to some degree, to make ends meet. Getting as much out of Social Security isn't a luxury -- it's often a necessity. But beginning sometime this summer, select retirees can expect their Social Security checks to shrink by up to 15%. For some of these beneficiaries, it's income they simply can't afford to lose. For well over six decades, the federal government has played a role in subsidizing and guaranteeing student loans. As of April 2025, the U.S. Department of Education (DOE) notes that 42.7 million Americans had a cumulative $1.6 trillion in federal student loans outstanding. However, the collection of federal student loan repayments was halted during the early stages of the COVID-19 pandemic (March 2020) and was simply never lifted. According to the DOE, more than 5 million borrowers haven't made a payment in 360 days, and another 4 million are between 91 and 180 days late on their monthly payments. While higher education student loans may sound like something that affects relatively younger Americans, they've become a prominent issue for retirees. Whereas the aggregate number of student loan borrowers under the age of 62 has declined by 1% from 2017 to 2023, the number of student loan borrowers aged 62 and above has surged 59% to approximately 2.7 million over the same period, based on data from the Consumer Financial Protection Bureau (CFPB). Per the CFPB, an estimated 452,000 of these senior borrowers have defaulted on their federal student loans and are likely receiving Social Security benefits. Since President Donald Trump took office in January, his administration has targeted perceived government fraud and is aiming to make federal operations more efficient. One of the many changes under Trump, vis-à-vis the Social Security Administration (SSA), is the reimplementation of Social Security garnishments for delinquent federal student loan borrowers. Beginning "sometime this summer," per Trump's administration, tardy borrowers receiving a Social Security benefit -- this applies to all types of beneficiaries (retired workers, survivors of deceased workers, and workers with disabilities) -- could see their payouts garnished by up to 15%. The one caveat to this garnishment is that recipients must be left with at least a $750 monthly Social Security benefit. Thus, if your normal payout is $825 per month, the maximum garnishment would be $75 per month instead of the flat 15%. Additionally, the Trump administration isn't planning to offer delinquent federal student loan borrowers a 65-day warning prior to potential garnishment, as has been customary in the past. Rather, communications sent out provide just 30 days' notice that garnishments are possible if borrowers are still in default. According to the CFPB, 37% of the Social Security beneficiaries who have a federal student loan outstanding (delinquent or not) currently rely on their monthly check from America's leading retirement program for 90% (or more) of their income. Even a 15% garnishment for defaulted borrowers in this category has the potential to be financially devastating. It goes without saying that the easiest way to avoid this new garnishment by the Trump administration is to not be in default on your federal student loan(s). But for the roughly 452,000 Social Security retirees set to be impacted by this change in policy, there are two under-the-radar yet perfectly legal solutions that should allow a majority to avoid having their payouts garnished. To begin with, some of these defaulted borrowers may qualify for the Total and Permanent Disability (TPD) discharge program, which cancels federal student loans and stops forced collections. As the CFPB pointed out in a January research report, the DOE entered into a data-matching agreement with the SSA in 2021 to automate the TPD eligibility and federal student loan cancellation processes for beneficiaries who become disabled prior to reaching full retirement age (currently age 67 for anyone born in or after 1960). However, this TPD application process is failing Social Security beneficiaries who become permanently disabled after they reach full retirement age. The CFPB notes that the onus of applying for a TPD discharge of their federal student loans and/or garnishment falls onto aged beneficiaries. Census survey data shows that approximately 22% of Social Security recipients with federal student loans report having a permanent disability, per the CFPB's report. Social Security retirees currently in default on their federal student loan(s) can also potentially avoid having their monthly check garnished by applying for a financial hardship with the DOE. Defaulted borrowers will be required to provide documentation of their income and qualifying expenses to the DOE. If an individual's qualifying expenses are larger than their documented income -- especially pertaining to a possible 15% garnishment of their Social Security payout -- the DOE will likely grant a financial hardship exemption. Based on data from the Federal Reserve Board's Survey of Household Economics and Decisionmaking, the CFPB estimates that a whopping 82% of Social Security beneficiaries currently in default on their federal student loans would qualify for the hardship exemption -- in other words, their qualified expenses would exceed their documented income. Yet, a 2015 Government Accountability Office report found that fewer than 10% of Social Security recipients with forced federal student loan collections applied for a hardship exemption. If delinquent borrowers were to simply apply for this financial hardship with the DOE, a majority would likely be granted it. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. A New Social Security Garnishment Is Set to Begin This Summer -- but There Are 2 Legal Ways Most Retirees Can Avoid It was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
