Recessions have a way of testing everything—your systems, your strategy, and especially your cash flow. But history tells us that some businesses don’t just survive downturns—they thrive. The difference isn’t luck or sheer size. It often comes down to preparation, funding, and the ability to adapt quickly when the market throws a curveball. If you want to be the business that makes it, let’s walk through five key ways businesses are weathering the current economic climate.
How Businesses are Handling the Strain of Inflation and Increased Rent
There’s no sugarcoating it—one of the biggest challenges facing small businesses this year has been the pressure from inflation and increased rent. Prices are up, lease renewals are steeper, and fixed costs are eating into margins that were already tight. According to some reports, many business owners are cutting back on hiring, delaying expansion plans, or renegotiating leases just to keep their heads above water.
When your overhead costs are rising faster than your sales, the temptation is to shrink everything: inventory, staff, ambitions. But playing defense alone isn’t enough. The data shows that the businesses making it through these conditions are the ones actively reworking their models. They’re moving online, renegotiating supply contracts, subleasing underused space, or sharing warehousing with other brands.
When Businesses Access Fast Capital Like a Revenue Advance
Cash is king during a downturn, but that doesn’t mean hoarding it is always the best move. Businesses that use funding wisely often put themselves in a stronger position than those that freeze up. The key is speed and flexibility. Getting a revenue advance helps businesses get through slow times without needing to cut back on too much. This gives them more flexibility to scale, even in a recession.
A revenue advance is structured for businesses that need capital now but want repayment terms that align with their cash flow. Instead of making fixed monthly payments, businesses repay a percentage of their future sales. That means if sales slow down, payments slow down too—a critical feature in uncertain times.
What the data shows is that businesses that secured this kind of funding were using the capital to stay competitive—doubling down on marketing, investing in tech upgrades, or even acquiring inventory at a discount. When others pulled back, they leaned in—and as a result, some gained significant market share.
Marketing During a Recession
It’s tempting to slash marketing when cash is tight. But businesses that keep showing up, even when others go quiet, tend to come out stronger. The key is optimizing—not eliminating—marketing spend. Data from past downturns shows that brands maintaining a visible presence often capture more attention because they’re not competing in a crowded field.
This doesn’t mean blowing your entire budget on ads. It means doubling down on what works. If email marketing delivers ROI, lean into segmentation and automation. If social media drives traffic, focus on content that converts. If you’ve been considering influencer campaigns, now might be the perfect time—rates are often lower, and audiences are still highly engaged.
Successful Businesses Manage Supply Chain Surprises
One thing that hasn’t gone back to “normal” post-pandemic is the supply chain. Delays, shortages, and cost spikes continue to disrupt inventory planning. For small businesses especially, these challenges can throw off cash flow and erode customer trust. But the data tells us that businesses with flexible sourcing, clear communication strategies, and a bit of extra capital on hand tend to navigate disruptions better.
That might mean carrying less inventory and using just-in-time ordering systems. It might mean shifting to domestic suppliers or building relationships with backup vendors. It also means communicating clearly with customers about shipping times and stock levels. Consumers are surprisingly forgiving—as long as you don’t leave them in the dark.
People Strategy Matters More Than Ever
In a recession year, your people become either your strength or your struggle. Businesses that prioritize employee engagement, transparent leadership, and cross-training are proving more adaptable than those that treat staff like line items.
What the data consistently shows is that teams who feel secure, valued, and involved tend to innovate. They offer ideas, spot inefficiencies, and rally during tough stretches. On the flip side, environments filled with fear, layoffs, and confusion tend to erode productivity and morale—just when you need them most.
Some businesses are also using this time to upskill their teams. Rather than cutting hours, they’re investing in training, which not only boosts morale but also prepares the team for future growth. Others are leaning into flexible work policies, which reduce burnout and increase loyalty—especially valuable when hiring slows and retention becomes crucial. Culture isn’t a luxury during economic stress. It’s your safety net.