How to Ensure Your Business Is Ready for When Times Get Hard
No one wants to think about their business facing tough times, but if the last few years have taught us anything, it’s that the unexpected can happen fast. Economic shifts, industry changes, supply chain issues, rising costs…All of these can hit even the most established businesses. The best way to protect what you’ve built? Prepare for it before it happens.
Whether you’re looking to ensure your business is ready for when times get hard, or are seeking support that requires the expertise of an accountant, Joanna Bookkeeping offers a comprehensive range of accounting services to businesses of all shapes and sizes ranging from compliance services to advisory services.. We support clients across the UK and our Oxford-based accounting team is always here to offer help and support.
Let’s get into the key areas to focus on so your business isn’t just surviving when things get hard, but staying strong, agile, and ready to adapt.
What Is Business Resilience?
Business resilience is your ability to withstand disruption and bounce back when things go wrong. It’s not about avoiding every bump in the road, it’s more about making sure your business can keep running when things don’t go to plan. Business resilience is what keeps you grounded during uncertainty and gives you the flexibility to pivot when needed.
Whether it’s a drop in revenue, a sudden supplier issue, or a shift in client demand, a resilient business can weather the storm and come out stronger on the other side.
Identify Potential Risks
Start by getting clear on what could go wrong. This might sound a bit pessimistic, but it’s actually a powerful planning tool and an important part of building business resilience. Think about different areas of your business:
✅ What would happen if your biggest client left?
✅ What if your supplier increased prices or shut down?
✅ What if sales slowed down for several months?
Map out potential risks and create a few “what if” scenarios so you can prepare backup plans in advance. Being proactive means you won’t be scrambling if things shift suddenly, you’ll already know your next step.
Build a Cash Reserve
One of the simplest and most effective ways to strengthen your business is by building a cash buffer. A cash reserve gives you breathing room when sales dip, expenses spike, or unexpected costs pop up.
How much should you have saved? That depends on your business type, but a good starting point is to aim for at least three to six months’ worth of essential expenses. Set aside a bit each month and keep it in a high-interest savings account where it’s easily accessible when needed.
Diversify Your Revenue Streams
Relying on one source of income is risky. If that one stream dries up, your whole business could be in trouble. By diversifying, you reduce your exposure to risk and give yourself more stability so it’s a crucial part of building business resilience.
This could mean:
✅ Offering new services or products
✅ Exploring different customer types
✅ Selling via different platforms (e.g. digital, in-person, wholesale)
✅ Introducing a retainer model or subscription service
The more ways you can bring money into your business, the better protected you’ll be.
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Manage Cash Flow Regularly
Cash flow is the lifeblood of your business. If you’re not keeping an eye on it regularly, you could be walking into trouble without realising it.
Monitor your incomings and outgoings weekly or monthly, not just when your bank balance looks a bit low. Use accounting software or work with an accountant who can give you clear reports so you can plan ahead, spot potential gaps, and adjust your spending or invoicing accordingly.
Enhance Efficiencies
When times are tough, trimming costs isn’t about cutting corners, practice being smart with your time, tools, and resources.
Look at your operations:
➡️ Are you spending money on subscriptions or services you don’t use?
➡️ Can certain tasks be automated or streamlined?
➡️ Is your team spending time on things that could be simplified?
Enhancing efficiencies doesn’t just cut costs, it frees up time and energy to focus on growth. Your accountant can help you with this, ask them what advisory services they can offer.
Focus on Customer Retention
While gaining new clients is important, keeping your current ones is even more valuable, especially during uncertain times. Existing customers already trust you, and retaining them usually costs far less than finding new ones.
➡️ Keep in touch regularly
➡️ Offer value-added services
➡️ Ask for feedback and take it seriously
➡️ Make sure your customer service is top-notch
Loyal customers are more likely to stick with you during hard times, and they can be your biggest advocates when things turn around.
Stay Up to Date with Industry Trends
The business world doesn’t stand still, and neither should you. What worked five years ago might not be enough now. As part of your business resilience plan you should stay informed about your industry, market shifts, and technology changes. This can help you spot opportunities early and avoid falling behind.
Read industry news, attend webinars, listen to podcasts, follow leaders in your space, whatever keeps you learning. Flexibility and awareness are key parts of resilience.
Ensure Employee Cross-Training
If one key member of your team is off sick or suddenly unavailable, can someone else step in? Cross-training your team ensures that your business can keep going, even if someone is out of action. Encourage your staff to learn different parts of the business and share knowledge. This not only builds business resilience but also boosts team morale and reduces bottlenecks.
Business resilience isn’t built overnight, but taking a few small steps now can make a huge difference later. From building a cash reserve to improving efficiencies and planning for the “what ifs,” you’re setting your business up to survive hard times and come out even stronger.
At Joanna Bookkeeping, we work with small businesses across the UK to help them build resilience through smart financial planning, cash flow management, and practical support. If you’re not sure where to start, our accountants are here to guide you.
Want help making your business more resilient? Let’s have a chat. Book a free call with our accountant and we’ll help you put the right financial systems in place to weather any storm.
Not based in Oxford or Wantage? No problem! We work with business owners all over the UK.
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