The Bottom Line- Banking on Adaptability
Banking On Adaptability
How to adapt and thrive in changing times
Whether it's the shift in a presidential administration, economic fluctuations, or an evolving regulatory landscape, the Darwinian rules of natural selection favor the fittest and the most adaptable.
Over the past five years, communities and companies have pivoted in response to a global pandemic, supply chain disruptions, and inflationary pressures. Now is a good time to remind ourselves that the lessons learned from these challenges remain relevant today and provide a strong foundation for navigating what lies ahead.
While some uncertainty always accompanies political transitions and global economic pressures, history has shown that the most adaptable businesses can survive and thrive. Here are a few key strategies to ensure your business remains resilient:
Stay Flexible and Resourceful
The businesses that weather change the best are those that remain nimble. Whether adjusting supply chains, refining business models, or leveraging new technologies, you must pivot quickly when necessary.
Monitor Policy and Regulatory Changes
A changing administration brings shifts in policy, taxation, and regulation. While some changes—such as new tariffs or immigration policies—can present challenges, others, such as deregulation, can create new opportunities. Stay informed and work with partners who can provide expert opinions and advice.
Strengthen Financial Position
Focus on maintaining healthy cash reserves, diversifying revenue streams, and securing strategic financial partnerships. Ensure you have access to capital and strategic advice when it matters most.
Embrace Technological Innovation
The rapid acceleration of AI and automation is reshaping industries at an unprecedented pace, leading to improved efficiencies and reduced costs. Technology must be a fundamental part of any forward-thinking strategy, whether streamlining operations, enhancing customer experiences, or leveraging data analytics for better decision-making.
Invest in People and Relationships
No matter how much technology advances, business will always be about people, connections, and relationships. Companies that cultivate strong relationships with employees, customers, and financial partners will always have an edge. A skilled and engaged workforce and trusted partnerships ensure long-term stability and growth. To prepare for the future, invest in mentorship, training, and leadership development.
The American spirit of resilience and innovation is strong, and no administration, economic cycle, or regulatory shift has dampened the entrepreneurial drive and inventiveness that fuels our country.
At Country Club Bank, we remain committed to supporting businesses as they adapt, grow, and seize new opportunities. By staying flexible and informed, we can navigate change together and build a prosperous future with optimism and confidence.
— Joe Close, President, Country Club Bank, Member FDIC
Economic Insights
Employment, layoffs, and the Fed: How things look so far
In January, the economy added 143,000 jobs, with the unemployment rate slightly decreasing to 4.0%. However, recent mass layoffs in the federal government (as well as some in the private sector) are likely to impact these figures.
Since January, approximately 30,000 federal employees have received termination notices, and it is believed an additional 75,000 accepted deferred resignation in February. With these resignations and other potential workforce reduction initiatives, as many as 200,000 to 300,000 government jobs (about 9% to 13% of total federal jobs) might be cut this year. In Kansas City, Mo., there are around 40,000 federal employees (including contractors), and rumblings of layoffs are circulating.
Even if federal job cuts approach the higher estimates, that would still be just 0.2% of the U.S.’s 159 million nonfarm jobs and only 19% of the 1.6 million jobs that economists expect to be created this year. However, the ripple effects could be significant when you consider reduced consumer spending on restaurants, cars, and even streaming services as well as the impact on individuals and their families.
The federal layoffs coincide with ongoing return-to-office (RTO) mandates across public and private sectors. While RTO policies aim to enhance productivity and collaboration, they have introduced challenges, including employee resistance and logistical complexities. Though the current climate of job insecurity, exacerbated by government downsizing, may influence employee compliance, the low unemployment rate still gives a slight edge to workers who want to make lateral moves for increased flexibility.
Inflation remains a pressing concern, with the latest reading of 3.0% in January still well above the Federal Reserve's 2% target. Factors contributing to sustained inflation include recent import tariffs and rising energy costs.
In response, the Federal Reserve held the federal funds rate at 4.25% to 4.50% during its January meeting, following a series of rate cuts in late 2024. Policymakers have signaled a cautiously optimistic approach, expecting just two rate cuts this year, contingent upon economic developments.
Bottom Line: The convergence of federal layoffs, inflationary pressures, and policy uncertainties has led to a more guarded economic outlook. The top 10% of earners, those making over $250,000, continue to spend; however, tariffs and taxes could cause some pullbacks or delayed purchases. Uncertainty always causes concern, the question is how long before policy clarity emerges, implications are estimated, and the realities of the marketplace kick in.
— Marcus Scott, CFA, CFP®, Chief Investment Officer (CIO) for Country Club Trust Company
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.
The opinions and views expressed herein are those of the author and do not necessarily reflect those of Country Club Trust Company, a division of Country Club Bank, or any affiliate thereof. Information provided is for illustrative and discussion purposes only; should not be considered a recommendation; and is subject to change. Some information provided above may be obtained from outside sources believed to be reliable, but no representation is made as to its accuracy or completeness. Please note that investments involve risk, and that past performance does not guarantee future results.
Partnership Profile
Staying Home Corporation aligns values and elevates banking experience with switch to Country Club Bank
For Mike Vogt, president of Staying Home Corporation, a maker of residential elevators and lifts based in Harrisonville, Mo., business ownership has always been about helping others achieve better lives.
Whether it’s helping customers stay in their homes longer and more comfortably or watching employees grow their careers and families, Vogt and his wife, Natalie, have done well by doing good for others.
“We’ve been focused on the quality of life for our customers, as well as our employees, since day one here,” Vogt said. “Our fundamental belief is that when we serve others with our best work and intentions, we are always rewarded spiritually, emotionally, and financially.”
The same belief applies to the partners and advisors he selects to help him manage the future and finances of Staying Home. When a past banking relationship started to change in unwelcome ways, Vogt decided to switch to Country Club Bank.
According to Vogt, one of the most impressive and persuasive aspects of working with Country Club Bank has been the bank’s leadership's willingness to invest in understanding his business.
“I was impressed that the executive officers at Country Club Bank were willing to come to our facility, learn about our business, and share their desire to support us as we continue to grow the company,” Vogt said. “That demonstrated their local commitment to us right away.”
A Partnership Based on Shared Values and Community
Vogt also found a familiar and trusted advocate in RJ Knox, a senior vice president at Country Club Bank.
“RJ is one of the good guys, someone I’ve known for years, and I appreciated his willingness to take our story to Country Club Bank,” Vogt said. “Having a banker who understands our business and is genuinely dedicated to its success has made a significant difference in our financial operations and service levels.”
In addition to the bank’s commitment to attentive service, Vogt appreciates its focus on regional businesses and its proximity to Staying Home’s headquarters. This local presence has meant greater accessibility, faster response times, and a banking partner who understands the area's unique dynamics.
Beyond the improved relationship and service, the financial benefits have also been significant.
“Interest rates for our loans and credit lines are more competitive with Country Club Bank, and our depository and operating accounts are more closely managed,” Vogt said. “Working with Country Club Bank has been a seamless experience, allowing us to focus on growth and operations.”
While transitioning to a new bank wasn’t easy, it was ultimately the right decision for Vogt and Staying Home.
“This was not a small decision, and changing banks is not easy,” said Vogt. “But we’ve found a partner in Country Club Bank dedicated to supporting our business, providing exceptional service, and fostering a long-term relationship built on trust and shared goals.”
Succession Planning Insights
How to find and groom the right internal buyer for your business
Whether transitioning to an internal or external buyer, selecting the right individual is key to maintaining your company’s track record of success.
But what makes someone the right buyer?
It’s essential to look for qualities that will lead to a successful transition and long-term outcome, especially when
considering an internal buyer. Here are the characteristics to look for and steps to take to identify and develop them.
The ideal internal buyer should possess the following qualities:
Business Acumen: A strong understanding of financial management, industry trends, and operational efficiency.
Leadership Skills: The ability to inspire and manage teams effectively.
Strategic Vision: A clear plan for the company’s growth and direction.
Decision-Making Ability: Confidence in making sound business choices under pressure.
Integrity and Commitment: A deep respect for the company’s values and long-term success.
Once you identify a promising candidate, evaluate their potential through:
Performance Reviews: Review past performance and accomplishments. Consider highlights, wins, and misses to get a well-rounded view of strengths and weaknesses.
Situational Analysis: Review how they handle challenges and decision-making.
Long-Term Interest Discussions: Check motivations and desires in the near term and beyond.
Provide opportunities for growth through:
Mentorship: You can assign a mentor or do it yourself to guide them through high-level decisions and the reasoning behind them.
Progressive Responsibility: Gradually increase their leadership duties to prepare them for full ownership.
Enhanced Education and Profile: Encourage participation in business courses, leadership development programs, and industry networking.
An internal buyer should also align with your company’s culture, values, and mission. Evaluate compatibility by looking at the following:
Observe Workplace Interactions: Do they foster a positive and motivated environment?
Test Vision: Do their goals for the company align with its long-term trajectory?
Review Commitment: Will they invest time and effort to see the company succeed?
Finally, engage other trusted advisors, such as financial and legal professionals, in the evaluation process to assess your buyer’s financial capability, negotiation skills, and long-term stability. A trusted team of advisors should give you candid feedback and advice to avoid missteps.
Finding the right buyer isn’t just about financial capability—it’s about ensuring they have the leadership, vision, and commitment to take the business forward. By identifying key characteristics and carefully assessing potential candidates, you are more likely to find the right buyer for your business, ensuring a smoother transition and successful outcome.
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Fraud Prevention
Cybersecurity Basics: Protecting your business from threats
If you think cybercriminals target only large corporations, think again. Small businesses are increasingly in their crosshairs.
The implications can be disastrous. A single cyber attack can compromise sensitive data, disrupt operations, and cause financial losses. That’s why a solid cybersecurity strategy is essential for businesses of all sizes.
The good news is that protecting your business doesn’t have to be complicated. Implementing key cybersecurity practices can significantly reduce your risk and safeguard your company from potential threats.
Protecting your files and devices:
✔ Update Your Software: Automatic updates keep your operating systems, apps, and web browsers up to date.
✔ Secure Your Files: Back up critical business data offline or in the cloud and store paper files securely.
✔ Use Strong Passwords & Multi-Factor Authentication: Require complex passwords and additional authentication steps to prevent unauthorized access.
✔ Secure Your Wireless Network: Change default router settings, enable WPA2 or WPA3 encryption, and turn off remote management.
✔ Train Your Team: Regular employee training creates a culture of security awareness and reduces the risk of cyber threats.
A strong cybersecurity foundation can help your business remain resilient to evolving threats. Be proactive, stay secure, and make cybersecurity a part of your everyday routine.
Want to learn more? Download our Cybersecurity for Small Business quick reference guide today.