If there’s one thing we have learned since 2020, it’s that change can happen—and it can come quickly, fiercely, and unexpectedly. The 2020s have been a financial roller-coaster—from the COVID-19 pandemic to tariff wars, geopolitical upheavals, and shifting global trade dynamics.
As we continue our journey through the 2020s and beyond, those businesses that are still in business are facing a buyer’s market that has changed, perhaps permanently. They also must navigate a new political atmosphere and a new perspective of how world events like this may be handled in the future.
For most companies, business can’t continue “as usual” through the remainder of the decade without adapting to the new market and better preparing for future challenges.
At Preferred CFO, we are in a unique position to observe the financial impacts disruptive changes such as COVID-19 and the AI technology boom have had, and continue to have, on a large variety of businesses, big and small. While many of these businesses have been able to survive these unprecedented challenges due to smart financial preparation, others have survived through strategic financial adaptations and agility.
Here’s a comprehensive look at what companies have learned so far this decade, along with actionable advice for businesses today.
More than any period since the Great Depression, this decade has reaffirmed the importance of having strong, healthy financial reporting tools.
Accurate, timely, and thorough financial reports allow you to identify and overcome financial crises faster and better. They enable you to more quickly identify when revenues and expenses are tracking off course, as well as what, exactly, is being affected. These comprehensive financial reports also allow you to make more informed adjustments or strategic decisions based on the challenges (or opportunities) you are facing. Then you can build liquidity and resilience before crises hit.
When you’re looking at your business numbers, it’s important to look at all possible scenarios. Planning only for best-case scenarios locks you into a position that is harder to deviate from if you don’t hit your numbers.
Instead, plan for the best case, worst case, and expected case. Make sure your plan works under any of these scenarios and plan the outcome for each.
There are several benefits to forecasting out these different scenarios. To mention just a few, the first is that it allows you to see at any point which projection you are trending along instead of being surprised when you look at your numbers, “not knowing how bad” (or how good) things are. The second benefit is that it allows you to make strategic adjustments more easily. After all, it’s difficult to determine how to get somewhere unless you first have a clear view of where you are and which direction you’re headed. Benjamin Franklin gave good advice when he said, “If you fail to plan, you are planning to fail!”
One of the things that has saved many businesses in these uncertain times is the ability to get creative in finding additional sources of revenue when their primary line of business sees a downturn.
For instance, during the Covid-19 pandemic, some distilleries started producing hand sanitizer, textile companies made masks, and home services companies added sanitizing services to their repertoire. To avoid onerous tariffs, companies such as Rolls‑Royce, Ford, GE Aerospace, Hyundai, Nvidia, and TSMC are expanding U.S. production. Companies such as Amazon are leveraging artificial intelligence, contract automation, and blockchain for supply chain visibility, predictive risk analysis, and adaptability.
In a crisis, what creative changes could you make to increase revenues? Could you turn excess inventory into revenue? Discount certain goods and services to increase gross sales? Pivot a product or service to better fit the emerging social, political, or economic environment?
Even during a global crisis like the COVID-19 pandemic or the tariff wars, there are still businesses or individuals that have money and are looking for opportunities. If you have a mindset of creativity during these challenges, you’re more likely to be able to identify these opportunities and to benefit from them.
During times of change, many companies have faced the problem of not being able to pay vendors and having customers that are unable to pay. The businesses that are best able to overcome these challenges have positive relationships with vendors as well as customers.
When you have a positive, communicative relationship with your vendors, you’re better able to negotiate favorable terms if your financial situation changes. You may be able to request extended terms, early payment discounts, or other creative solutions to help you fulfill your production or service needs without business coming to a standstill.
With tariff unpredictability and rising geopolitical risks, many firms are "friend-shoring" and "near-shoring" by shifting production and supply chains to politically aligned countries. The current relocation of major chip and pharmaceutical manufacturing companies to the United States exemplifies this.
Equally, having a positive relationship with your customers allows you to offer better terms. The worst thing that could happen in your sales is having your customers default on payments to your company and not respond to inquiries. With a positive relationship, you can extend payment terms or payment plans to ensure you are able to get paid, even if it’s not right away (late revenue is better than no revenue). These relationships can also better inform you if a customer is heading toward a position where they will not be able to pay and allows you to mitigate risk by asking for payment upfront, pausing services or products, or taking other protective measures.
The 2020s have also taught us that it is important to have a variety of financing options available when you need them. Financing is one of the first ways to extend your runway when you have cash flow challenges.
It is highly advisable to always have a line of credit in place, even if you don’t need it. In general, the best time to get financing is when you don’t have an immediate need for it. You never know when you are going to have a rainy day and need outside cash.
A company can have all the revenue in the world, but without the ability to receive cash, or have access to it, the livelihood of the business may be in jeopardy. It is better to be safe than sorry!
The unprecedented events of the 2020s have shown us that it’s best to do a product line analysis before you are faced with a significant financial challenge. Knowing the profitability of your products and services can help you make strategic adjustments now, while also enabling you to make more informed decisions if disaster strikes.
Payroll is the highest cost that most businesses face. In addition, the effectiveness of employees plays a big role in your company’s profitability. This is why it’s crucial to make sure you have a fine-tuned team at all times. A strategic, efficient team means you are maximizing your company’s productivity and profitability while minimizing wasted payroll spends.
If you haven’t evaluated your team members for a while, now is the time to do so. Let go of underperforming employees and reevaluate arms of the business that are not reliably contributing to business revenues and profitability.
There is a funny adage, “If You Think It’s Expensive to Hire a Good Accountant. Try Hiring a Cheap One.” This same principle applies to all departments. Ensure that you have the right people in the right places.
Crises such as COVID-19 have put many business owners in the very difficult position of having to make employee cuts when families were already hurting. By making these evaluations and changes during non-emergency times, you’re allowing yourself to have a more level head and think strategically about any cuts that may need to be made.
Even on the best days, an owner should always be looking for opportunities to be more successful. This financial lesson has been reiterated mutiple times in recent years.
For instance, during the Covid-19 lockdown, many restaurants quickly jumped on socially distanced takeout orders, patio seating, and more while pushing community-oriented messaging through social media, while other restaurants were unable or unwilling to make strategic changes and didn’t open at all. Suppliers such as Ellwood Group, Big Time Ads, and Duke Manufacturing have benefitted from tariffs by taking advantage of reshoring demand.
Business owners should always be on the lookout for opportunities to grow or support their companies. During times of trial and challenge, this becomes more important than ever!
The final financial lesson we have learned since 2020 is to stay in business long enough for something good to happen. In some cases, no matter the preparation, agility, and effort, you just have to weather the storm and survive long enough to have the opportunity for recovery after it passes. And be assured, it will eventually pass.
Start with friend-shoring-friendly supply chains; select regions with stable trade policies. Automate core operations early with digital tools. Build strong local partnerships and financial planning from day one.
Tighten controls on finances and pricing; consider pivoting supply to less risky areas. Explore alternative financing channels. Reinforce liquidity and revisit long-term cost structure.
Embrace digital transformation—AI, blockchain, digital twins. Build redundant supply networks; diversify suppliers geographically. Localize operations where feasible. Stay informed on trade policy shifts and incentives.
Build liquidity before crises, not during.
Diversify supply chains to reduce geopolitical and logistical risk.
Use tech like AI and digital twins for visibility and agility.
Reconsider globalization—friend-shoring and near-shoring are replacing just-in-time global strategies.
Be adaptive with pricing and financing models as interest rates and inflation fluctuate.
Friend-shoring means relocating operations to politically allied or economically stable countries. This reduces exposure to unpredictable tariffs, embargoes, or supply chain bottlenecks. It became essential during the U.S.–China tensions and Russia’s Ukraine invasion.
They’ve embraced:
Massive reinvestment in AI and automation.
Reshoring production to reduce tariff risks.
Flexibility in logistics and product development.
Proactive policy engagement, taking advantage of government incentives.
Tighten cash flow oversight.
Use cloud-based tools to streamline operations.
Explore government grants and subsidies in your region.
Build alternative supplier relationships.
Consider niche markets impacted positively by shifting trade dynamics.
Surprisingly, U.S.-based manufacturing, steel, semiconductors, and logistics have gained ground. Companies like Ellwood Group, Nucor, and Duke Manufacturing saw a boom due to reshoring and tariff protection.
ERP systems for financial and supply visibility (e.g., NetSuite, SAP).
AI analytics for risk prediction and pricing models.
Blockchain for transparent supply chains.
Digital twins to simulate and test business resilience scenarios.
Launch with geo-strategic supply chains in mind.
Choose industries aligned with onshoring trends (e.g., clean energy, advanced manufacturing, local food systems).
Invest early in automated finance and ops tools.
Plan for financial shocks—set up emergency capital lines and liquidity reserves.
Yes. In 2025, many regions offer:
U.S. CHIPS Act subsidies for semiconductor and tech production.
Inflation Reduction Act benefits for clean energy and manufacturing.
EU reshoring grants and export protection incentives.
Check your national economic development sites or local business incubators for specifics.
Here are some recommended reads from the article:
While the 2020s have so far presented unprecedented challenges, the reality is that businesses face disruptive problems even when there is not a global pandemic or political upheaval. Whether these are worldwide issues or industry/company-specific events, such as material price hikes or the loss of a CEO, most companies will face at least one major crisis at some point in their lifecycle. The biggest lesson we can take from those who survive these crises is to be prepared, be creative, and be nimble.
So we should all face the future with:
Liquidity: Build buffers as a strategic shield.
Agile Supply Chains: Diversify and embrace redundancy.
Strategic Friend‑shoring: Monitor incentives and align operations accordingly.
Fast Tech Integration: Use AI and digital tools for visibility and adaptability.
Lean Operations & Pricing Savvy: Renew cost discipline and value-based pricing.
This has been a decade of disruption—but also of opportunity. Companies that treat volatility not as a barrier but as a signal to pivot and invest are now reaping the rewards. As change accelerates, preparedness and adaptability are your strongest assets.
What financial lessons have you learned recently? Let us know in the comments below. Our fractional CFOs are happy to respond to questions and comments, or to schedule a free financial review.
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