Using the Economic Downturn to Prepare for a Rise

Businesses of all sizes are preparing for a potential recession or economic slowdown. The possible downturn comes on the heels of three years fueled by pandemic pricing, rising inflation, a tight labor market, supply chain issues, and layoffs. While navigating these issues has been nothing short of extraordinary, maintaining business continuity and propelling growth results from smart business decisions. 

When business slows down during an economic downturn, smart leaders take this as an opportunity to prepare for the future when business returns to normal. Rather than sitting back or scaling down, companies that survive and thrive do so because they use this time to improve and enhance their business offerings.

One key factor in business success is leveraging technology to create efficiencies, support cybersecurity, streamline processes, and improve the customer experience. But how can leaders prioritize tech when their minds are on other aspects of business health and management? 

By understanding the crucial role of tech in modern society.

Whether processing payments, training employees, or sharing information, businesses must combine functional technology with traditional business practices to maintain longevity. And finding the right solutions can take time, trial, and error. Because they have more time, businesses can use economic downturns to audit, improve, and refine their tech to see them through challenges and carry them through to the other side.

Rising inflation, a tight labor economy, and fears of a looming recession have upended organizations of every size and industry. According to The U.S. Small Business Administration, there are over 33.1 million small businesses employing 61.7 million Americans. As a result, SMBs account for 99% of American businesses. 

By nature, SMBs operate with lean teams and minimal resources. This means they require additional help from third parties that can seamlessly integrate into their workflows to meet current and future business needs. External consulting and advisory services are also helpful during economic downturns when SMBs face even more uncertainties but want to remain competitive. 

Anupam Satyasheel, CEO and founder of Occams Advisory, shares that “companies need to look beyond a short uptake and partner with companies through economic cycles. We call that a regenerative economy.” During a downturn, companies can partner with organizations that can help them see the opportunities and help prepare them for when the economy will recover, either by looking at additional partnerships, merger and acquisition targets, or looking within to learn how to best utilize their internal resources. 

By bringing in experts, SMBs can successfully navigate difficult times and maintain a lean team without making major sacrifices. 

Successful companies use their slow periods to assess their infrastructure and make tech updates during times with the lowest impact on clients. 

Regpack CEO Asaf Darash recommends using the economic downturn to prepare for the ‘up season.’ Darash says, “You should look at improving company processes, testing new technology, facilitating employee training, and perfecting internal functions. Smart leaders understand that downturns are happening no matter what you do, and use this time to get ready for the upturn.”

This holds true for many industries, especially the service industry, when companies can avoid significant disruptions and audit their tech stack to search for gaps and replace legacy infrastructure. For example, upgrading or improving payment and onboarding processes during slow seasons will result in less friction than in busy periods, which might impact workflow and customer satisfaction.

This is also the ideal opportunity to test new technologies. With less website traffic, damages and mistakes are minimized. Fewer people on a site also makes it easier to implement new tech.

Unfortunately, cyber threats don’t disappear during an economic downturn. In fact, they can be exacerbated with fewer personnel available to address and prevent security issues. But how do you prioritize cybersecurity when your business is short on time, money, and resources? 

Combining the benefits of SP, MSP, and MSSP services, everything-as-a-Service (XaaS) is a utilitarian approach to cybersecurity ideal for businesses with small or non-existing IT teams. XaaS is also beneficial for dedicated cybersecurity support, which is necessary 24/7, not just during business hours. 

Faisal Bhutto, SVP of Cloud & Cybersecurity at Calian IT & Cyber Solutions, says, “One of our favorite customer quotes is, ‘Cyber attacks don’t happen from 8 to 5. They actually happen from 5 to 8 and on holidays.’ The truth is, cyber attacks can happen at any time, so it’s always beneficial to maintain cybersecurity.”

With XasS, business operations are transformed. Traditionally, companies seek multiple vendors to handle various needs, such as cybersecurity, networks, access control, productivity, and more. XaaS streamlines this process, delivering the same solutions with just one vendor. 

Capable of speeding up business processes, shifting IT resources to higher-value projects, and improving expense models, XaaS provides business continuity during economic downturns. 

As organizations learn the delicate balance between working with the tech and skills they have and outsourcing help when necessary, they will find that they are better positioned to weather the storms of economic fluctuations. This is also true of enhancing tech stacks to improve business function, streamlining processes, and enhancing productivity where possible. As a result, business leaders who understand the best ways to distribute their time and resources during economic downturns will emerge primed for an upturn.