It’s Time to Recession-Proof Your Business Before Things Get Scary
Economic forecasts from McKinsey & Company and Deloitte predict slower growth, higher borrowing costs, and tighter budgets in the coming months.
You can’t control those forces, but you can prepare your business to weather them.
Here’s how to strengthen your foundation before the next storm rolls in.
Review What’s Working (and What’s Weak)
Before you can recession-proof your business, you need to know what’s keeping it steady. hat’s quietly holding it back is also an important factor.
- Look at your financial reports. Which services or clients consistently bring in profit? Which ones drain time or money?
- Once you spot patterns, use that insight. Double down on what’s reliable. Tighten or pause what’s unpredictable.
- Watch for early warning signs. This might be projects taking longer, expenses rising faster than revenue. These are your prompts to adjust before cash flow gets tight.
- Don’t just collect data…act on it. Examples: if one service brings stability, make it a recurring offer. Add or adjust offerings to allow smaller price point options and still deliver value while keeping your margins.
Pro Tip: Information only helps if you act on it. Treat this review as a map: it shows where to steer when the economic weather changes. And if you haven’t been keeping good track of your numbers, now’s the time to get on it!
Protect Your Cash Flow. It’s Your Lifeline
Cash flow isn’t just a number. It’s your ability to breathe when business slows.
Start building a reserve that covers three to six months of expenses. That cushion gives you room to adapt without panic.
If you’re not sure how to start, read Financial Planning for Creatives: Build Your Buffer. The same approach works for any service business: steady savings, clear goals, and consistent habits.
Then tighten the flow of money:
- Follow up on invoices before you need the cash.
- Automate reminders to prevent missed payments.
- Delay big purchases unless they’re essential.
- Review subscriptions that could be paused or reduced.
The goal isn’t to stop spending. It’s to build flexibility, so you can make calm decisions when the market wobbles.
Pro Tip: Cash flow isn’t just about how much you earn. It’s also about how long you can stay afloat. Every dollar you save now becomes your buffer, just like an insurance policy. It’s there for you when you need it. Then your business decisions can be strategic, made from a place of calm.
Strengthen Client Relationships Before You Need To
When business slows, your strongest safety net is the trust you’ve built. Clients who feel supported stick around. This is true even when their budgets tighten.
- Stay in touch before you need to. A short check-in or “How’s it going? How can I help you” note reminds them you care about their success, not just their payments.
- Add small, genuine value. Share a resource, a shortcut, or an idea that helps them run smoother.
That turns you from vendor to partner. Partners don’t get cut when budgets shrink. - If you need to raise prices, explain why. Quality, reliability, and service depend on fair pricing. When clients understand the link between cost and consistency, they respect it.
Keep communication proactive. When clients know what’s happening, you reduce stress for both sides.
Pro Tip: Every positive interaction builds equity you can draw on later. Strong relationships mean repeat work, faster payments, and referrals that carry you through lean seasons.
Revisit Your Pricing and Processes
When the economy shifts, costs change long before pricing does. That gap quietly erodes profit.
Recession-proofing means closing that gap before it hurts.
- Review your pricing at least once a year; sooner if expenses are climbing. Check vendor rates, software fees, materials, and labor. If they’ve gone up, your rates should reflect it.
Understand that updating prices isn’t greed; it’s maintenance. It protects your ability to deliver excellent work without cutting corners.
For a deeper look at how to evaluate and adjust your pricing, read Pricing Your Services: A Guide for Graphic and Web Designers. The same principles apply to every service business. Know your value, track your costs, and price for sustainability, not survival.
Pro Tip: Make sure you have clear provisions in your service agreements around how and when prices will be reviewed. Consider including an automatic percentage increase with each contract renewal.
Now Examine How You Work
Every workflow hides waste.
- Could automation save time? What steps can be simplified? Streamlined workflows reduce overhead and create space for more billable work. This can potentially delay a price increase.
- Consider retainers or service bundles to turn unpredictable income into stable monthly revenue.
Clients like knowing what they’ll get and what it will cost. You gain predictability that cushions you during slow months.
Pro Tip: Every duplicated step is a cost you can reclaim just by streamlining. Because efficiency is a form of profit. SOPs and clear workflows eliminate that waste. When you refine your process, you don’t just save time. You create ‘capacity.’ Utilize that extra time to work on your business areas that need most support
Streamline How You Work and Build Resilience
A resilient business is a lean business. And every workflow hides waste. When times get unpredictable, waste is the first thing to eliminate.
Start by looking closely at how you work.
- Could automation save time?
- What steps could be simplified or combined?
Streamlined workflows reduce overhead and create space for mor billable work. This can even delay the need for a price increase.
Audit your tools and systems next.
- List every app, subscription, or process you rely on. Ask two simple questions:
- Does this directly support revenue or client satisfaction?
- Is there a simpler way to get the same result?
If the answer is ‘no,’ it’s time to streamline. Every duplicated step is a cost you can reclaim just by tightening your process. Because efficiency is a form of profit.
Document your key workflows and create clear SOPs
- Document key steps for each task. When your SOPs are defined, you remove guesswork, reduce errors, and save time across the board. And when your team or clients know exactly what to do and how to do it expect, you spend less time managing problems and more time building results.
- When you refine your workflow tasks, you don’t just save time; you create capacity. Use that extra time intentionally. Focus on areas of your business that need the most support: marketing, client outreach, or professional development.
Every outdated process or unnecessary expense weakens your ability to pivot when change hits.
Pro Tip: Be sure to have a backup on your data, SOPs and Workflows. If something unexpected happens, you’ll recover quickly instead of scrambling. I also have my important files remain on my computer as well as in the cloud. That way, when power goes out, I can at least get some bit of work done with my solar-powered generator. Resilience grows with every cleanup. A business that runs smoothly when things are easy will survive when things get hard.
Keep Your Eyes on the Long Game
Recession-proofing your business isn’t only about surviving this year. It’s about building habits that keep you strong for the next decade.
Keep marketing, even when budgets tighten. Stay visible where your clients spend time. Visibility builds trust, and trust creates opportunity when others pull back.
Use slower months to invest in yourself. Take a class, upgrade your certifications, or learn a new system.
Each skill expands your flexibility. This is the quiet strength behind resilience.
Stay connected with peers and your professional community. Share insights, offer help, and collaborate. Opportunities often surface through relationships, not ads.
And remember: every cycle turns. The structures, systems, and habits you reinforce now will carry you into the next upswing stronger than before.
Pro Tip: Resilient businesses don’t wait for calm seas. They prepare, adapt, and keep moving…one smart decision at a time. This can be a slow process, but just start: one step, one SOP, one workflow, one system at a time.
In a Nutshell
You can’t stop the economy from changing, but you can decide how prepared you’ll be.
Review what’s working, protect your cash flow, and strengthen the systems that support you.
A little planning today can save months of stress tomorrow.
If you’re not sure where to begin, your books already hold the answers. They show what’s steady, what’s fragile, and where resilience begins.
Remember, you don’t have to navigate uncertain times alone. Book a Let’s Get Acquainted call. No advice, no pressure, just a quick chat to see if I can help you steady your course
