Corporate Resiliency Revisited: Ensure Financial Health Ahead of an Economic Downturn

Given these issues, which do not appear to have a quick solution, now is a critical time for companies to reassess their business and finances if they have not already, so that they can be prepared for the future. Proper planning is key to ensuring a company's financial health when facing an economic downturn. Although companies will come into such planning with different levels of financial health, the same considerations can be helpful in determining the best path forward.

A good starting point is the budget and plan you have for this year. Consider: How have revenues changed since the beginning of the pandemic to now? Although many pandemic-related restrictions and mandates have ended and business have opened back up, customers may not have the same spending habits as they once did, particularly if your prices increase to account for supply and/or inflation issues. Are there ways that the business can transition to take into account the "new normal" and changing customer preferences? Many customers got used to restaurants' take-out and delivery services and retailers' curbside pick-up alternatives. Are these services that those companies can continue to offer going forward? Be creative with the solutions, but also be careful of solutions that have associated costs and expenses that may not be justified.