Small Business Resilience

Three strategies for Delaware small business owners to navigate the current economic environment

BY CHIP ROSSI

AS 2024 COMES TO A CLOSE, Delaware’s small business owners remain resilient, displaying confidence in their ability to thrive. According to the Bureau of Labor Statistics, as of 2023, 98.5% of businesses in Delaware are classified as small businesses—those with fewer than 500 employees. These enterprises account for over 82,000 businesses and employ roughly 180,000 people, representing 46.5% of the state’s total workforce.

Our latest research at Bank of America shows that Delaware small business owners are cautiously optimistic about revenue growth in the year ahead, and many feel positive about the broader economy. Nationwide, apprehensions about supply chain disruptions and a potential recession have notably diminished. However, inflation and interest rates remain at the forefront of business owners’ concerns, despite the Federal Reserve beginning to ease interest rates from their 23-year high. Meanwhile, a new presidential administration and issues such as healthcare costs are top of mind for small business owners. Despite these challenges, the majority (65%) of business owners in Bank of America’s survey expect revenue to rise over the next 12 months.

Looking ahead to 2025, Delaware small business owners should focus on key strategies to help meet their revenue expectations and maintain growth. Here are three approaches to consider:

1. Conduct a SWOT Analysis

Regularly evaluating the state of your business is always a smart practice, particularly when navigating a shifting economic landscape. A SWOT analysis—assessing your business’s strengths, weaknesses, opportunities, and threats—can provide valuable insights into potential areas for growth and improvement.

This exercise helps business owners pinpoint critical tradeoffs and adjustments that may be necessary to maintain profitability. According to Bank of America’s data, 70% of small business owners have already made tradeoffs, including personal sacrifices such as working more hours or reducing their salaries, and operational changes like increasing prices or cutting marketing costs. A thorough SWOT analysis ensures that decisions about such changes are grounded in a clear understanding of your business’s current position and prospects.

2. Monitor Your Cash Flow

Effective cash flow management is crucial for small businesses, especially during times of economic uncertainty. By closely tracking both your current and projected revenue and expenses, you can better anticipate when adjustments may be needed to avoid unnecessary costs and preserve profitability.

In the past year, 71% of small business owners have digitally optimized their operations, with many adopting mobile apps or online banking tools to monitor their finances. These digital solutions offer flexibility and ease, allowing business owners to access their financial data anytime and make informed, timely decisions. Leveraging these tools can help you stay ahead of potential cash flow issues and enable more strategic planning for the months ahead.

3. Reconnect with Your Customers

It’s critical to maintain strong relationships with your customers. Economic uncertainty affects everyone, and customers who feel valued are more likely to remain loyal. In fact, 82% of small business owners have taken steps to engage more meaningfully with their customers, whether through personalized interactions, soliciting and implementing feedback, or hosting community events.

Delaware business owners can also take advantage of social media platforms to humanize their brand and build stronger connections. Today, 65% of small business owners use social media to interact with customers, share behind-the-scenes stories, engage with comments, and promote upcoming sales. These platforms can be a powerful way to foster deeper relationships with your clientele and strengthen brand loyalty during uncertain times.

Whether your business has been a fixture in Delaware for years or is just getting started, there are always opportunities to adapt, improve, and grow. At Bank of America, we’re committed to helping small business owners across Delaware access the tools and resources needed to navigate any economic environment and achieve lasting success.

Chip Rossi is Delaware market president at Bank of America.