How to build a more resilient business during economic uncertainty
Tariffs, trade wars, inflation, recession risks - there’s a lot of uncertainty in the air right now. Even though these headlines might feel far removed from your day-to-day, they can have a knock-on effect on confidence, client budgets, and long-term planning.
While we can’t control global events, we can control how prepared we are for them.
Here’s what you can do right now to build more resilience into your business - financially, strategically, and mentally.
Review your revenue risk
Now’s a good time to step back and take a look at where your revenue is coming from. Are you reliant on any particular sector, market, or geography? For example, if you have clients in the US, could there be a risk of delays or budget cuts? Or - are your clients potentially at risk (which will then impact their stability as a source of revenue for you)?
Look at how evenly spread your client base is - and build some contingency into your plans. That doesn’t mean you need to panic. It just means making sure you’ve got enough visibility, flexibility, and margin built in to absorb any bumps in the road.
You could even look to other markets - countries outside of the US are likely now more open than ever to working with different suppliers.
Strengthen your cash position
A strong cash position is one of the best indicators of resilience. If you're not already forecasting your cash flow regularly, now’s the time to start. Can you spot any gaps ahead of time? Are there steps you can take now to improve your cash runway?
Here are a few quick wins:
- Invoice faster and chase consistently - and use automation to make this easier
- Review spending and challenge anything that’s not delivering some form of ROI
- Build up a buffer (aim for 3-6 months' operating costs if you can)
A longer cash runway means you can make smarter decisions and avoid knee-jerk reactions if things change suddenly.
Build a resilient mindset
Running a business in uncertain times can be emotionally draining. It’s easy to get caught in a cycle of worst-case thinking or feel pressure to act fast.
Instead, resilience comes from pausing, getting clear on your numbers, and making steady, confident decisions. It’s about playing the long game.
To help get a clear head and prepare you for different outcomes, it's smart to have a contingency plan. You should think about scenario planning - how will your forecast look if your biggest client falls away, for example? Work on an optimistic, a realistic and a pessimistic 12-month forecast.
If you're feeling anxious about the future, also take some time to reflect on:
- How far you’ve come
- What’s within your control
- Where you could simplify or strengthen your business
And don’t underestimate the power of connection. You’re not in this alone - whether it’s through a community, a trusted adviser, or another business owner similar to you, talking things through can make a huge difference.
Revisit your investment strategy
Markets are wobbling again - and that can feel unsettling. But this is normal during times of uncertainty. What matters is how you respond.
Here are some simple principles to keep in mind:
- Make sure that you hold sufficient capital in cash as an emergency fund (between 3 and 6 months of cash) to meet unexpected costs. This should ensure that you do not need to draw from your investments during a period when they may have fallen in value.
- If you have concerns about the impact on your business or your future earnings, then now may be a good time to review your expenditure and consider where you could reduce your outgoings.
- Investing in stocks and shares should be considered a medium to long-term investment activity. Only invest money that you are unlikely to need to access for at least 3-5 years or more.
- If you are concerned about the level of change in the value of your pensions or investments, then it may be appropriate to review the amount of investment risk that you are taking to ensure that moving forward - i.e. revisit your attitude to risk when it comes to investment.
- If you have cash available to invest, then an opportune time to do this may be when markets are lower.
If you have concerns about your pensions or investments, then seek independent financial advice. Talk to us.
Guiding principles
In previous recessions and the pandemic, at Wow, we decided on some guiding principles. Even though we had no idea what was going to happen, we knew we could control how we were going to deal with it. We agreed upon three guiding principles that would help us navigate whatever was coming. They were:
- Be calm
- Be positive
- Be decisive
These principles guided us through the ups and downs of the coming months and helped us make decisions along the way. They were incredibly helpful. So, as we embark on another period of economic uncertainty, I invite you to think about how you’d like to lead your business through what’s coming next. What will your guiding principles be?
Resources to help you build resilience
We’ve pulled together some practical resources that can help you put some of these ideas into action:
Agency Profit Guide: A practical guide to boosting agency profit, from pricing to processes and client retention.
Community support: We partner with Consultancy Growth Network and The Agency Collective to help provide support for businesses like yours.
Cash Flow Resources: Small tweaks that can have a big impact on your cash position.
Tips for Increasing Profitability: Rory shares five actionable ways to improve your agency’s profitability in under 15 minutes.
Friend in Need: If things feel tough right now, this initiative offers free support to help you through (available for Wow clients only). You don’t have to go it alone.
