How to Recession Proof Your Small Business
Hearing the ping pong of news on tariffs has got to be hard on our peers with small businesses that rely on products and supplies from other countries, but those of us without product-based businesses still need to pay attention—we aren’t out of the woods yet, and now’s the time to recession-proof your business.
When the economy wobbles or headlines get heavy as they have been, it’s easy to slip into worry mode as a small business owner. I feel like ‘time for worry’ is perhaps a daily/weekly task for some business owners. But here’s the truth: you don’t have to panic—you just need a plan. Huge advocate for plans over here!
The goal isn’t to avoid all risk (that’s impossible), but to control the controllables and continue to build a business that’s strong, steady, and set up to weather whatever comes your way. Because it will. If it’s not a recession, it’s a family emergency or unexpected illness, or maybe even a pandemic – remember that?
The idea of a recession often has buyers holding onto their money a little tighter, and that may trickle down to impact your business as well. Here’s how I coach solopreneurs and service providers to recession-proof their business—without losing momentum or more importantly, their mission.
Here’s where we’re headed.
1. Build a Financial Foundation That Lasts
If you want a recession-proof business that can withstand hard times, you need solid financial habits before the storm hits. When’s the best time to plant a tree? 30 years ago, I think the saying goes. And if you missed that mark, the next best time is today.
- Budget or plan your cash flow monthly so you’re never surprised by slow seasons or tax bills…it may feel like your expenses are unpredictable, but although it’s very likely variable, there is some level of predictability.
- Build a business emergency fund—even a small reserve adds peace of mind. I’d love for you to have 3-6 months of salary and operating expenses set aside.
- Understand your numbers and know where to trim or increase spending to stay sustainable; if you’ve been trying several different marketing methods perhaps now is the time to just double down on the one you know gives you the best returns. Maybe it’s time to eliminate any expenses that are not directly revenue producing.
- I love the Profit First methodology for keeping your salary and expenses in check—so you’re not “eating” or spending more than you can afford.
- And don’t forget: it’s okay to pick up the phone and negotiate with creditors or vendors. Be proactive, not passive. Feel like your interest rate is too high? Make a call. Not able to make that loan payment this month – pick up the phone.
- Audit expenses quarterly, not just once a year. Ask: Is this tool or subscription worth the return on my investment?
I could go on and on within this category itself, and if this is a big gap for you – please do go down the rabbit hole with these past blog posts.
https://www.myjourneytoinfluence.com/4-areas-to-check-the-health-of-your-small-business/
https://www.myjourneytoinfluence.com/category/small-business/
2. Diversify and Strengthen Your Revenue
If all your income comes from one service or one client, you’re vulnerable. Spreading out your revenue streams reduces risk and gives you breathing room. This makes your small business recession-proof.
Some ideas I recommend to clients:
- Monthly retainers or subscription-based services that create predictable income.
- Maintenance contracts is how one of my clients is able to maintain some steady income flow, but the work itself just crops up quarterly – easier for the client to budget, and helpful for this owner as well.
- Time-bound or seasonal packages that meet current needs; think one off intensives or time sensitive offers around holidays, school seasons, etc.
- Periodically I myself, offer group coaching intensives that are meant to challenge entrepreneurs to level up in their business – it’s a short time commitment, and an influx of income that I may not have had otherwise.
Ask yourself: What do my people need right now—and how can I deliver that sustainably?
3. Stay Visible, Even When Clients Are Spending Less
Marketing doesn’t stop when the economy slows—it matters even more.
You want to stay top of mind so when people are ready to buy, they think of you first.
- Go back to your grassroots marketing roots—referrals, local networking, and organic outreach.
- Double down on relationship-building. The clients and referral partners that you nurture during strong seasons are the ones who stick with you in tough ones. Keep building relationships.
- Update your messaging to reflect today’s challenges. Speak to the pain points your audience is feeling now. Don’t hide from it. Lean in.
- Consider flexible pricing options—but always anchor in the value. Remember: price is only an issue in the absence of value. Offering monthly payments or two installments can be helpful.
4. Streamline Your Operations
Efficiency isn’t just a recession-proof business strategy—it’s smart business all the time. Efficient use of time is the intentional use of time. I want you to be able to intentionally take time away, and not worry about the 27 things that you could be doing. Being efficient during the working hours allows your brain the ability to relax in off hours.
- Use low-cost tech tools to automate scheduling, invoicing, client onboarding, etc.
- Evaluate how you spend your time in a weekly time audit..even the 10 minute tasks add up! How could you use a tool that gives you back that time – allowing you to do revenue generating tasks instead?
- Cut the fluff. Prioritize what’s essential and delegate or delete the rest.
- When working with clients in a time audit we end up categorizing tasks in 4 buckets; high payoff (toward your goal) and easy to do, high payoff and hard to do, low payoff and easy to do, and low payoff and hard to do. The low payoff/easy to do are ideal tasks to delegate or treat as fillers. The low payoff/hard to do are in the kill zone. Forget about it for now, you can always circle back later.
5. Shift Your Mindset: Don’t Panic, Plan
When uncertainty hits, it’s tempting to freeze—or overwork out of fear. But a calm, consistent mindset is your best asset.
- Reconnect with why you started your business and who you’re here to serve. Seriously, spend some time here.
- Lean into your faith, mission, and values—they’ll guide your decisions when the path isn’t clear.
Stick with your routine and keep taking action. This isn’t the time to coast—it’s the time to stay consistent. It’s also not likely a time to hustle so hard that it hurts either; people can smell desperation – know the value that you provide, and remain confident.
6. Plan with Purpose
Recession-proofing your small business isn’t just about cutting back—it’s about aligning your time and offers with what works now.
- Map out how you spend your time and align it with income-generating tasks. Make sure that you see the dotted line back to your time being spent making money…maybe not today – but future dollars.
- Review your offers: Do they still solve your clients’ current problems? Are they priced appropriately?
Ready to Recession-Proof Your Business?
You don’t have to do it alone. If you want some helping making sure that you have a solid plan, here are a couple of options to support you.
👉 Book a Small Business Assessment Coaching Call with me to review your numbers, audit your operations, and create a personalized plan that works—even in uncertain times.
💻Catch the replay of my Time Budget Workshop and learn how to take control of your time to ensure you’re using it in the best possible way.
You’ve built something amazing—now let’s make sure it’s built to last.
Thank you for joining me on my journey to influence.
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