Running a business is a bit like juggling knives in a hurricane. You might be managing fine now, but it only takes one strong gust, an economic downturn, a big client walking away, or costs shooting up overnight, for the whole thing to come crashing down. That’s why building business resilience isn’t just wise; it’s critical if you want your business to weather the inevitable storms.
At JVCA, we’ve written extensively about how businesses can toughen up and thrive, even when the environment gets rocky. Here, we pull together the best advice to help you put resilience right at the heart of what you do.
Facing a recession with a plan
When the economy turns sour, businesses that survive don’t panic and slash everything to the bone. They plan properly.
- Improving your business in a recession starts with knowing your numbers inside out, cutting waste without cutting strength, and seeing where new opportunities lie.
- Running regular financial health checks, knowing your break-even point, and tracking cash flow weekly are crucial steps.
- Creating a simple financial dashboard with revenue, costs, profit, and cash flow figures helps you spot issues before they turn into disasters.
Want to be a business that thrives during downturns? Our blog on how to improve your business in a recession digs into how being proactive rather than reactive can give you a serious edge when times are tough.
Keeping your cash flow healthy
Resilient businesses understand one thing above all: without cash flow, you’re finished. It doesn’t matter how good your product is or how loyal your customers are; if the money dries up, so does your business. For a lot of businesses, incentivising faster payments by offering small discounts for early settlement and applying penalties for late payment can keep the cash moving. Keeping tight control over credit terms and customer payments is also essential.
We’ve shared practical advice in our guide on ways to improve cash flow during an economic downturn. Building a cashflow forecast that looks at least six months ahead gives you the breathing room to tackle challenges early, rather than firefighting later.
Steering your business through tough times
Leading a business through an economic downturn is a different job from leading during the good times. It calls for steady nerves, quick thinking, and honest assessment of what’s working and what’s not.
- Holding short, regular team check-ins ensures everyone stays focused on the immediate priorities.
- Being open with your team about the situation fosters trust and helps people stay motivated.
In our blog, running your business during economic downturns, we talk about the leadership qualities that matter most when the environment gets rough. Setting up a simple weekly communication plan for internal updates can make sure that nobody is left guessing what is happening.
Future-proofing your business
Resilience isn’t just about survival; it’s about setting your business up to thrive when you face unexpected situations. That means:
- Thinking bigger: diversifying your income streams, building in flexibility, and investing in a culture that can roll with the punches.
- Exploring new markets or introducing product extensions before you urgently need them can create lifelines when times get tough.
- Building a “what if” plan for different scenarios, like losing a major client or facing doubled supply costs, can prevent nasty surprises.
Our blog on future-proofing your business looks at how smart businesses prepare not just for the next downturn but for long-term success.
Build a resilient business now for tomorrow
Building business resilience isn’t a one-off job you can tick off your to-do list. It’s an ongoing mindset. It’s about thinking ahead, preparing properly, and staying calm when others lose their heads.
| Want to make your business unbreakable? Book a free discovery call with JVCA today! We’ll help you build a business that’s stronger, leaner, and better positioned to grow. |
