Economic instability isn’t a matter of if—it’s a matter of when. And the “when” is now. So far, all politics aside, the year 2025 has been characterized by major economic uncertainty that is impacting companies both large and small. The question is, how will your leadership team respond?
In times of like these, the most valuable asset you and your team can possess is preparedness. Eschew panicking and gather around the table for some serious planning sessions.
Start with a Clear-eyed View of the Business
The first step is understanding where your company stands today. What are your key metrics? What is your breakeven point? How does your revenue fluctuate seasonally? What parts of your cost structure are fixed vs. flexible?
From there, establish scenario-based planning. If revenue drops 20%, what’s the plan? What if it drops 30% or 40%? Great leadership teams think through these contingencies before they are in crisis. They define decision points and map out pre-agreed-upon actions—such as freezing new initiatives, tightening expenses, and reducing headcount if absolutely necessary—so they are not reacting emotionally later.
Plan for the Long Haul, Not Just the Next Quarter
Uncertainty doesn’t follow a timeline. The economy could even out swiftly or there could be months of instability. That’s why leadership teams need to think beyond short-term fixes and plan for the long haul.
This means carefully assessing and safeguarding your resources. Do you have the cash reserves or line of credit needed to sustain operations during an extended downturn? Have you prioritized which expenses are essential and which can be paused? Can you identify non-core initiatives that can be put on hold or phased out temporarily?
Essentially, this is about cultivating a business continuity mindset. You're not just protecting profitability: you are protecting your people, your reputation, and your long-term viability.
Communicate with Clarity and Honesty
Instability breeds anxiety, especially among your employees. People start to worry about their jobs, the future of the business, and what leadership might not be telling them. The worst thing you can do in these moments is stay silent or pretend nothing is wrong.
You don’t need to have all the answers—but you do need to communicate your plans with clarity and transparency. This will help your people steady themselves in the storm. Even if the
