Navigating Today’s Economy
For many businesses, the start of 2024 felt like the unraveling of COVID economics. Everything was shifting: new business development, customer retention, and even the dynamics of how we work with our teams. 2024 became the year of hard resets and new beginnings.
Then came 2025. As the dust settled and the post-COVID “new normal” started to make sense, another transformation took hold, the AI revolution. It’s changed the way we think about efficiency, workflows, and customer experience. I’m incredibly grateful for a team that has embraced this new chapter and for the clients who have trusted us to guide their financial evolution.
And if you’d like to know more about how we can help transform your AI journey or prepare your business to be AI-ready, give us a call. The STRMS team is always ready.
Navigating Today’s Economic Changes
Let’s be honest, it’s not easy out there. The pressure to “get it right” with financial planning has never been higher. Growth is harder to finance, margins are thinner, and every decision carries a little more weight than it used to.
So, let’s break it down.
The Current State of the Economy
The Fed isn’t flinching. The prime rate is holding at 7%, and no one’s talking about cheap money coming back soon, just small decreases next year.
Inflation may be cooling, but borrowing costs are still high and that means financing company growth remains expensive.
Consumers are maxed out. U.S. household debt hit $18.6 trillion in Q3, up nearly $200 billion from last quarter, according to the New York Fed.
Corporate debt is rolling over at higher rates, “squeezing earnings and discouraging investment,” as one recent market analyst put it.
Growth is harder to fund, and the cash in your business burns faster than before.
What This Means for Your Business
In this environment, “winging it” with your finances isn’t just risky, it’s reckless.
- Revenue can dip faster than your next board meeting.
- Rising debt service can quietly choke your cash flow.
- One missed forecast can snowball into layoffs or cuts.
This is where
CFO leadership and
FP&A
discipline become your competitive edge.
How to Stay Ahead
Implement a 13-Week Cash Flow Forecast
Your cash is your oxygen. A rolling 13-week forecast helps you see trouble coming before you’re gasping for air.
👉 Download our 13 week cash flow template
We’ve put together a quick walkthrough video on how to get started.
Put Planning on a Cadence
Annual budgets are dead. Quarterly reviews and monthly updates keep your plan connected to reality.
Run “What If” Scenarios
What if sales drop 15%? What if debt costs rise another point? Planning now means you won’t panic later.
Invest in FP&A Discipline
Even small and mid-sized companies benefit from financial visibility, forecasting, and scenario modeling — often more than the big guys.
For companies ready to build that discipline, GrowthLab’s FP&A team delivers the modeling, budgeting, scenario planning, and financial visibility needed to stay ahead.
Final Word
Today’s economy rewards the proactive, not the panicked.
By pairing CFO-level strategy with FP&A discipline, you can safeguard your margins, manage uncertainty, and build a business that lasts.
At GrowthLab, we’re helping founders and operators navigate this new chapter, from financial planning and forecasting to transforming their operations with AI.
Frequently Asked Questions
Why is a 13-week cash flow forecast so important right now?
In today’s high-rate, tight-capital environment, cash visibility matters more than long-term projections. A 13-week cash flow forecast gives you a near-term, rolling view of cash in and cash out, helping you anticipate shortfalls, plan financing needs, and make decisions before problems become urgent.
Is FP&A only for large companies?
Not at all. In fact, small and mid-sized businesses often benefit the most from FP&A discipline. When margins are thinner and access to capital is limited, forecasting, scenario planning, and financial visibility become essential tools for survival and growth.
How often should we update our financial plan?
At a minimum, plans should be reviewed quarterly and updated monthly. Static annual budgets rarely reflect real-time conditions. A regular planning cadence keeps leadership aligned and allows businesses to respond quickly to economic or operational changes.
What kind of “what-if” scenarios should businesses be modeling?
Common scenarios include revenue declines, increases in debt costs, delayed customer payments, hiring freezes, or unexpected expenses. Modeling these possibilities ahead of time helps leaders respond calmly and strategically instead of reacting under pressure.
How does AI fit into financial planning and forecasting?
AI can improve efficiency, automate reporting, and enhance forecasting accuracy, but only when built on a strong financial foundation. Clean data, disciplined processes, and clear financial models are prerequisites for successful AI adoption.
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