Every downturn in the economy reshuffles the market, redistributing customers, capital, and competitive advantage. Companies that treat these cycles as recalibration often emerge stronger, while those that rely on old playbooks struggle to regain footing.
For entrepreneurs, the challenge lies in reinforcing core strengths while seizing opportunities that only appear in volatile markets. To help you do this, 20 Fast Company Executive Board members each share their strategies to help companies endure disruption and position themselves for growth once conditions improve.
1. BUILD FINANCIAL RESILIENCE.
Businesses must build financial resilience by bolstering cash reserves, refining forecasting, and curbing margin leakages via cost control and pricing. Diversifying offerings and customer segments ensures flexibility and adaptability when economic conditions shift. Finally, lean into strategic visibility by reinforcing trust, continued targeted marketing, and innovating to capture market share as competitors retreat. – David Johnson, Vervent
2. EMBRACE DISCIPLINE AND EFFICIENCY.
The key is discipline—staying focused on efficiency, resource optimization, and operational agility. Our model holds up in downturns because it drives cost savings and delivers measurable ROI. In uncertain times, those fundamentals matter more than ever. – Juan Vallarino, myLaurel
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3. SECURE CREDIT BEFORE YOU NEED IT.
Secure credit proactively, even when you don’t need it. This will provide an opportunity to keep options open even when the business or market slows down, and it enables business owners to innovate when the competition is scaling back. – Mark Valentino, Citizens
4. LEVERAGE AI FOR SPEED AND VALUE.
Unfortunately, there are no simple answers. In today’s fast-paced technology landscape, which is driven especially by advances in AI, businesses must find ways to leverage AI to work faster, smarter, and more efficiently. While some roles may inevitably become obsolete, AI can also open up opportunities for operational efficiency, expanded service offerings, and new value for customers. – Martin Pedersen, Stellar Agency
5. BALANCE OFFENSE WITH DEFENSE.
There isn’t any company that can ever be 100% recession-proof, but they can prepare by balancing offense (growth and diversification) with defense (cash and efficiency). Companies should diversify revenue streams, maintain three to six months of expenses in liquid savings, and optimize operations for efficiency. This mix of offense and defense builds flexibility for companies to adapt and weather downturns. – Justin Rende, Rhymetec
6. DESIGN YOUR BUSINESS FOR AGILITY.
Recession-proofing means building agility into your business, diversifying revenue streams, making data-driven decisions, and having a team that anticipates change. When every part of your company is designed to adapt, survive, and thrive, downturns become opportunities, not threats. – Dr. Katrina (Katya) Rosseini, KRR Ventures
7. FOCUS ON PRICING DISCIPLINE.
Companies that clearly understand the value they deliver and price accordingly are better equipped to protect margins, maintain customer trust, and resist the temptation to chase competitors in a race to the bottom. This discipline ensures long-term sustainability, even when market pressures intensify. – Avy Punwasee, Revenue Management Labs
8. STRENGTHEN RELATIONSHIPS IN UNCERTAINTY.
When uncertainty rises, relationships are the currency that holds and grows value. Companies built on genuine connection don’t just survive recessions; they often emerge stronger, with loyalty and goodwill that compound long after the economy recovers. – Britton Bloch, Navy Federal Credit Union
9. TURN ADVOCATES INTO GROWTH DRIVERS.
Raving fans and advocates are the best salve for any headwind the macro environment might throw your way. Even if they go to a new company, advocates will bring you with them. This can be a surprising growth lever that most organizations don’t factor in due simply to its unpredictability. – Andrea Lechner-Becker, GNW Consulting
10. OPERATE LEAN.
Audit every department to pinpoint where resources are being wasted, then eliminate expenses that don’t directly drive revenue or long-term growth. By focusing only on what moves the needle, you build a nimble, resilient business that can adapt quickly when the economy shifts. – Toni Pisano, PortPro Technologies, Inc.
11. SELL WHAT CUSTOMERS CAN’T CUT.
Focus on things people will keep buying even in tough times. Save extra money when business is good so you can cover costs if sales drop. Keep costs lean and try to sell more than one kind of product or service. This balance helps your company stay afloat when the economy slows. – Chris Dyer, Leadership Speaker
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12. PRIORITIZE CUSTOMER LOYALTY.
Obsess over existing customers. Loyalty beats acquisition costs every time. Familiar wallets open faster in tough times, especially when you keep delivering value they can’t replace. – Stephanie Harris, PartnerCentric
13. LEAD WITH VISIBILITY AND TRUST.
Visible, consistent leadership builds trust in turbulent times. Communicate often, act with purpose, and invest in people. Diversify revenue so no single client or sector defines you, and focus on mission-critical projects, like healthcare and community assets that stay funded when markets tighten. – Larry Brinker Jr., BRINKER
14. INNOVATE WHILE COMPETITORS RETREAT.
Instead of hoarding cash and cutting costs, prioritize innovation and creating new value. Invest in bold marketing strategies and unique offerings. This helps your brand stand out and attract customers even during difficult times. While competitors play it safe and focus inward, those who dare to be different and be seen will thrive, carving out a niche that succeeds during economic downturns. – Shawn Galloway, ProAct Safety, Inc.
15. PRIORITIZE RESILIENCE OVER SPEED.
Diversify revenue streams, build loyal customer relationships, and create offerings that feel essential, not disposable. This works because in uncertain times, people cut the excess but hold onto what they trust and value most. Stability comes from being indispensable, not just visible. – Sudhir Gupta, FACTICERIE
16. CONNECT TO A STRONGER ECOSYSTEM.
To recession-proof a business, you need to connect it with a broader ecosystem, like local communities, trusted partners, and industry networks. This interdependence creates stability for everyone, because when times get tough, people support the businesses they feel connected to. A company that invests in being part of a community becomes more than a vendor. It’s an essential part of a network. – Volen Vulkov, Enhancv
17. KEEP STRATEGIES SIMPLE AND PERSONAL.
It’s the simple strategies that work best to recession-proof a business. Pay attention to your customers and their needs and value them with ongoing communication and personal service—think little things like remembering their names and what they bought last. Today, AI can help with that, so use it. Maintain a good cash flow, which may mean cutting bonuses or renegotiating contract terms. – Baruch Labunski, Rank Secure
18. DIVERSIFY TO SPREAD RISK.
Recession-proofing starts with diversifying revenue streams and reducing reliance on a single market or channel. This works because flexibility cushions demand shocks, spreads risk, and allows businesses to pivot quickly—turning uncertainty into opportunity instead of vulnerability. – Boris Dzhingarov, ESBO ltd
19. SEE DOWNTURNS AS OPPORTUNITIES.
Recessions can be an opportunity rather than an obstacle—forcing leaders to reassess priorities, cut waste, and double down on what truly works. This mindset shifts the focus from fear to innovation, allowing businesses to emerge leaner, more agile, and better positioned to capture growth when conditions improve. – Goran Paun, ArtVersion
20. STREAMLINE STRUCTURE AND CASH FLOW.
During a recession, the biggest impact on any business is a decline in demand and revenue, which can lead to losses or a cash crunch. Keep the organization leaner with flat hierarchies. This helps company leaders keep profitability higher, pivot the business faster, and enable nimble decision-making. Having the ability to maintain a healthy cash conversion by negotiating better terms with both suppliers and buyers always comes in handy. – Ruchir Nath, Dell Technologies