Opinion: Solid financial strategies key to ensuring companies stay healthy for the long run

Stephanie Staggs

There’s something uniquely admirable about manufacturing leaders. You’re builders at heart – makers of things that last. You take pride in precision, quality and doing the job right the first time. We see that same work ethic in the manufacturing clients we serve, and it’s one of the reasons we love what we do.

But even the strongest operations can run into trouble without a plan behind the scenes.

We’ve walked alongside business owners who never miss a deadline – but haven’t yet carved out time to think about who will carry the company forward, or how to reward the team that helped them grow. That’s where a little proactive financial strategy makes a big difference.

Here are a few ways we encourage manufacturing leaders to think beyond the floor.

Take care of key people
Your people are your greatest asset. The right compensation plan – whether it’s bonuses, profit sharing or long-term incentives – can show them they’re not just employees, they’re part of your future. And that’s something they won’t forget.

According to The Manufacturing Institute, 77% of manufacturers report ongoing difficulties attracting and retaining talent – and the companies that are succeeding are the ones investing in people. Executive benefit plans, nonqualified deferred compensation and stay bonuses can be powerful tools for retention, especially for skilled team members who are hard to replace. These aren’t just perks; they’re strategies to protect your most critical relationships.

Start succession conversations early
You may not be planning to retire tomorrow, but succession planning is like preventive maintenance – it works best before something breaks. Yet, according to the National Association of Manufacturers, nearly 7 out of 10 small and mid-sized manufacturers don’t have a written succession plan.

And family-owned firms face their own set of challenges. The Harvard Business Review reports that while 70% of family businesses want to pass their company to the next generation, only 30% actually succeed in doing so. Without planning, transitions become rushed, emotional, and expensive. A clear strategy now can protect your business later—and ensure your values are carried forward.

Plan for the unexpected
We insure machines, buildings and trucks – but what about the people who make the business run? Having disability coverage or a buy-sell agreement in place can mean the difference between a pause and a crisis. It’s not about fear; it’s about care.

According to the Council for Disability Awareness, 1 in 4 of today’s 20-year-olds will experience a disability before they retire. And the U.S. Small Business Administration estimates that over 75% of small-business owners have no formal continuity plan in place if something happens to them or a partner. Without protection, your business – and the jobs it supports – can be at risk overnight. Solid contingency planning gives your team and your family peace of mind.

Your business is more than a balance sheet. It’s a story of hard work, faith, and resilience. Our role is to help make sure that story keeps going strong – for the next chapter, and the one after that.

Stephanie Staggs is the owner of Staggs Financial Services LLC and previously was the Springfield region executive for the Better Business Bureau. She can be reached at stephanie_staggs@glic.com.