How To Brace Your Business For A Possible Recession: Expert Tips

Business leaders keep a weather eye both on their own organization's financial state and ever-evolving (often uncertain) global market conditions. When warning signs of a recession pop up, leaders must look for ways to shore up both their current and future positions. From building cash reserves to doubling down on customer loyalty and operational efficiency, the smartest leaders don't wait to react; they build resilience ahead of potential financial challenges.
The moves leaders make in the earliest days when recession threatens can position their businesses to gain ground while others pull back. To help leaders prepare, Forbes Business Council members share proven approaches to recession-proofing a business and discuss why they work.
Following the JIT (just-in-time) approach, even during the Covid-19 pandemic, we scaled, our salaries grew and our operations thrived. Why? Because we didn't plan—we executed. Resilience comes from timely action, strategic agility and launching only what the moment demands. Be prepared to lead through the recession. - Ahsan Khaliq, Saad Ahsan - Residency and Citizenship
In uncertain times, reducing staff may seem like a quick fix—but it can cost you more in the long run. Retaining skilled employees keeps your business agile and ready to grow when the market rebounds. Look at other cost-saving measures first. - Amy Friedrich, Principal Financial Group
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To recession-proof your business, simplify decision-making. In high-stakes moments, we keep it simple and focus on ruthless prioritization—what to scale, what to stop and what to shift. That clarity gives teams speed, which is the real edge when everything around you gets uncertain. - Kamanasish (KK) Kundu, Kendra Scott
Build strong cash reserves, reduce debt and diversify income streams. For rental businesses, maintain a mix of property types and revenue sources. Leverage technology to optimize operations and strengthen tenant retention through proactive communication, prompt maintenance, value-added services and flexible leasing options that adapt to changing market conditions. - Ryan Barone, RentRedi
Economists project rising recession risks in the coming years. To prepare, we're making strategic capital investments now—especially in essentials likely to increase in cost. Locking in value today helps hedge against inflation, improve efficiency and strengthen operations, putting us in a stronger position to navigate downturns and remain competitive in a shifting economy. - Daniel Gizzi, Aircraft Executives
Diversification reduces dependency on a single customer segment or product line, cushioning a business against sudden demand drops in any one area. This strategic flexibility not only helps sustain cash flow during downturns, but also positions the company to capitalize on shifts in consumer behavior that often emerge in recessionary times. - Andrea Eboli, EDR Consulting
Throughout my 30 years of owning a company, I have always operated under two assumptions. First, when the 'going is good,' keep cash on hand for a rainy day. Don't overextend or be too bullish on growth. Second, debt must work for you, but overleveraging during strong years can be your downfall when times change—and they will always change. - Neil Cadman, Cadman Group
Companies that survive and thrive in a recession are the ones that deepen their relevance with customers. Focus on retaining and growing value with existing high-value customers rather than chasing new ones at the margin. This approach does more than protect short-term sales; it creates a cycle of trust, preference and advocacy that can drive organic growth even when broader demand contracts. - Alan Brew, BrandingBusiness
Amid rising recession fears, leaders can recession-proof a business by aggressively optimizing cash flow and liquidity. Implement stringent cost controls, manage receivables and secure credit lines. Such financial fortification provides the resilience needed to cover essential expenses, seize opportunities and outlast a downturn. - Jay Patel, OSI Systems
Maintain operational continuity and retain staffing as much as possible. By safeguarding the employment of essential workers—like Latinos, who comprise nearly 20% of the U.S. workforce—companies can better adapt to changing market conditions, further operational stability and continuity, and better position themselves to be prepared to capitalize on opportunities when the economy recovers. - Ana Valdez, Latino Donor Collaborative
Audit your GTM stack. If your CAC-to-LTV ratio only makes sense in bull markets, you're sitting on a sandcastle. Kill underperforming channels. Double down on earned media, community and referral pipelines. Recession exposes false efficiency. It also rewards companies that built trust before they needed it. - Ran Ronen, Equally AI
Lock in multiyear contracts now—even if it means offering strategic discounts. Securing long-term commitments stabilizes cash flow, deepens customer relationships and shields your business from market volatility. In a downturn, predictable revenue doesn't just provide protection—it's the difference between playing to survive and playing to win. - Ahva Sadeghi, Symba
Focus on strengthening your core offerings—the products or services that drive the most value. Streamline operations and cut nonessential expenses without sacrificing quality. This keeps your business lean and focused, helping you weather slowdowns, protect cash flow and stay ready to grow when the market rebounds. - Saheer Nelliparamban, ZilMoney
In uncertain times, don't just cut costs—cut noise. Eliminate products, processes or marketing efforts that drain resources but don't drive real results. This forces clarity on what actually sustains the business. By tightening focus on high-impact activities, you build resilience and agility—two things that thrive in any economy. - Kristina Fitzpatrick, Paper & Flowers
Build a balance sheet safety net larger than regulators require, and make it public. When clients see reserves running at 150% of liabilities, they stay put rather than rush for the exits. Meanwhile, vendors offer better terms, and regulators view the firm as a partner, not a problem. In a contraction, that unused buffer can finance strategic hires or bargain-priced acquisitions instead of layoffs. - Alvin Kan, Bitget Wallet
Know your numbers like your life depends on it—because your business does. Cash flow isn't just a metric; it's your oxygen. In a downturn, speed matters. Leaders who track expenses weekly, forecast monthly and cut early win. Don't wait for a recession to get disciplined. Build muscle now so you can pivot fast and protect what matters most. Resilience isn't reactive—it's built on rhythm. - Aleesha Webb, Pioneer Bank
In a downturn, margins matter more than growth. Cut what's optional, and double down on what's irreplaceable. If your product is the first thing customers cancel, it was never a business; it was a luxury. - Yves Remmler, Endeavor Elements, Inc.
Cut the fat, feed the muscle. In uncertain times, don't hoard cash—reallocate it. Invest in what drives revenue and retention. Fire vanity projects and double down on core values. Recessions don't kill businesses—confusion does. Clarity, speed and focus turn downturns into power plays. - Igor Kucherenko, Pateplay
One powerful way to recession-proof a company is to invest in operational efficiency by automating repetitive tasks and outsourcing noncore functions. This helps reduce overhead, preserve cash flow and maintain flexibility, allowing businesses to weather downturns while staying focused on growth opportunities. - Pranav Dalal, Office Beacon
Double down on retention, overdeliver for your best clients and make your brand unforgettable. In uncertain times, people cut the extras—but they keep what feels essential. If your value is crystal-clear and deeply felt, you won't just survive—you'll become recession-resistant. - Dr. Christina Carter, Her Practice®

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