MADISON, Ala. (WHNT) — Small businesses make up about 44% of the nation’s Gross Domestic Product, according to the U.S. Small Business Administration.
Ben Walter, the Chief Executive Officer of Chase Business Bank, said those same companies boost local economies when they they are financially successful.
“Always have a plan, and always have a plan for multiple outcomes because we hope for the best, we have a plan for the best, but don’t just have a plan for the best,” Walter said. “Have a plan for what happens if it doesn’t go that way.”
Confidence in the markets often shifts month to month. Walter described seeing optimism from investors after the presidential election. He said sentiments cooled with President’s Trump’s tariff announcement, but the markets spiked after the tax bill was passed in July.
Regardless of the state of the economy, Walter said he would usually give a business owner the same general investment advice.
“You need to think long term,” Walter said. “You need to think about the investments that you’re going to make, not just for the near term, but for one year or two or three years from now. The second would be to diversify. We tell all our businesses, ‘if you’re dependent on one or two clients for all of your income, that’s not really giving you a good risk-management strategy.’”
Walter said small businesses play a significant role in a community’s economic development.
“Half of all jobs are employed by small businesses, and more than two out of every three private sector job is created by a small business,” Walter said.
He said many businesses in North Alabama are riding a rising tide. Communities are expanding, some by thousands of new people each year.
While the growth has the potential to benefit small businesses, Walter said it is important that local leaders invest in infrastructure, like roads, to ensure the expansion does not outpace what a community can support.
Chase Bank is expanding in Alabama. The bank has 11 locations, with the goal of opening 35 across the state.
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