By: James Sayer

Consultant at ERA Group, with experience in business consulting, sales, and technology analysis

 It seems that if it's not a widespread pandemic, it's a strike. Economic downturns are common in the long run, and failing to prepare for multiple scenarios leaves a company vulnerable and at a competitive disadvantage. In times like these, it would be beneficial to have a "You Are Here" sign, like the ones seen in shopping malls and busy cities. This map could show how close (or far) the milestones are and how long it will take to reach them. As economists worry that the slowdown will turn into a recession by 2025, businesses expect to experience a decline in demand.

 Fortunately, the dockworkers' strike announced on October 1 ended quickly and shouldn't exacerbate the demand shortage. While cost-cutting methods like reducing overtime pay or laying off staff may seem like viable options, they have been shown to negatively impact morale and diminish quality and effort over time. Your current "You are here" position is likely moving you further away from your goals rather than closer to them. Instead, a more practical and affordable business choice is to analyze budgets for obsolete, redundant, or trivial transactions.

 When reviewing a quarterly or annual budget, it is common for a busy executive to overlook a seemingly inconsequential purchase.

 The value of reinvesting

 An exciting aspect of competitive innovation is examining the newly discovered potential. As you look at your "You Are Here" map, these are the monumental steps taken to reach milestones and increase return on investment (ROI). After analyzing fiscal budgets, reducing daily expenses makes it easier to invest in the company and focus on customer satisfaction. With customer satisfaction at its lowest point in two decades, more companies are tracking their customers' journeys, using surveys, and correcting course where they fall short to increase efficiency and company value.

 New technologies and artificial intelligence, ordering additional materials, marketing efforts, and streamlined processes are opportunities to build resilience in the face of an economic recession. For example, during the Great Recession of 2007–2009, Lego struggled like many other companies in the U.S. market.

 To navigate this downturn, Lego also began marketing to European and Asian markets. This shift gave Lego global recognition and record profits in the midst of a recession.

Regardless of supply chain delays, rising material prices, or falling demand, a company that remains consistent during a recession builds customer loyalty, with 55% of customers sharing that they would pay more for an experience they are confident will be positive.

With many companies only reacting when a crisis arises, a company prepared for emergencies is more likely to survive a recession and increase its profits as well.

Building a business resilient to economic downturns impacts short-term performance and, more importantly, long-term sustainability. With a plan in place, this business can move quickly, creating a competitive advantage and building customer trust. As benchmarks appear and milestones are achieved, continually ask yourself, "Where am I now?" And through evaluation, you'll know the answer .