8 Ways Your Business Can Thrive in a Recession

Recessions are very stressful for businesses. A downturn in the economy leads to a decline in sales and profits. Consequently, many companies face bankruptcies due to liabilities and cash flow problems.

Small businesses are more vulnerable in a recession because they often lack the scale, capital assets, and tools to buffer the shock of an economic downturn.

Typical reactions to recession include cost-saving measures such as laying off employees and reducing capital expenditure and investment. If this is not properly handled, attempts to solve recession problems may hurt your business.  

In this article, we will explore various ways outsourcing and technology investment can help your business survive and thrive in a recession.

1.  Reduce Operational Costs

Operational costs and overheads can make the difference between your business sinking or thriving in a recession.  If your organization can reduce its overhead cost better than competitors, it will enjoy more stability and growth during a recession.

Outsourcing parts of your business to third-party providers is a sure way to save operational costs. Tasks that don’t require full-time employees and those that are not part of your business’s core functions can be outsourced to managed service providers (MSPs). 

In addition, jobs that require specialized technical skills are good candidates for outsourcing as it may be too costly for small businesses to maintain an in-house team. 

2. Improve Business Efficiency

The typical reaction of companies to a recession is to scale back investment. This can cause a massive dip in the company’s productivity and make it a less competitive player if mishandled.

With regards to personnel layoffs, more work is shifted to the remaining employees who are better off focusing on their core jobs. This approach leads to valuable time being wasted on tangential tasks. Employees’ productivity may reduce because retained staff lack the necessary skills or the knowledge of current best practices to execute reassigned jobs.

Outsourcing certain activities to managed service providers is an effective way to improve efficiency and boost productivity. 

3. Boost Sales With Technology

The desire to reduce expenditure in a recession may negatively impact essential departments such as sales and marketing. This can cause a reduction in sales and revenue and resultant financial woes.

With the aid of technology, your organization can maintain a functional sales and marketing system while reducing the overall cost of getting more clients.

Investment in new sales technologies and Enterprise Resource Planning software can help your business understand the sales cycle and its challenges. Technology also makes developing a better marketing strategy that works in a recession.

4. Reduce Liabilities

In a recession, the lower your company’s liabilities, the higher its chances of survival. 

Hiring third-party technical experts to handle the non-core aspects of your business is a powerful way to reduce liabilities. You will not only eliminate benefits and remuneration to maintain an in-house team but also reduce the risk of violating industry regulations or missing deadlines due to oversight from stressed-out staff.

5. Reduce Costs with Automation

When looking for ways to cut costs in a recession, automation solutions are an obvious choice.

Many organizations spend a large part of their budget and time on human resource management and other administrative functions. According to recent research, managers spend about 8 hours a week on business tasks that could be easily automated.

Automation allows businesses to tighten budgets without sacrificing critical business operations. Creating automated routines for handling various business tasks will help your company during a recession and position it for stronger growth post-recession.

6. Improve Customer Relationship

Customer relationships are a big factor in improving your company’s sales.  It is much easier and cheaper to keep an existing customer than to prospect for new ones. 

Clients may also refer more business to your company because of excellent customer service.

The stressful period of a recession may cause a weakly planned customer retention and acquisition system to collapse. Mismanaged customer relationships are one of the factors that can push your clients into the arms of competitors or make prospects lose interest in your company. 

With the right technology, your business can maintain its customer base, gain insight into clients’ behavior, adopt methods to keep existing clients, and also generate new quality leads.

7. Save Office Space

One result of outsourcing some parts of your business operations is the reduction in office space needs. Also, adopting new technologies with advanced collaborative features makes remote working more convenient for employees. 

Businesses with fewer office space requirements can save money on rental costs during a recession. The savings may be invested to boost your business’ chances of surviving a recession.

8. Prevent Business Disruption

A business disruption that could be successfully managed in a booming and stable economy could prove fatal in a recession. This is because companies have fewer resources to mitigate its effects. Hence organizations must deploy solid strategies for disruption prevention and disaster recovery .

Outsourcing parts of your business operations such as cybersecurity and disaster management can reduce the risk of business disruptions by putting skilled experts in charge of critical infrastructure.

In summary, restricting your business activities until a recession blows over is a bad strategy. A better approach is to maintain your business momentum through smart investment and outsourcing.

A recession can create wide gaps in performance and revenue between companies within the same market. 

To thrive in an unstable economy and be on the winning side post-recession, invest in technology and outsource your IT tasks to experienced and skilled managed service providers such as SDTEK.

Ready to make your business recession-proof?  Get in touch with SDTEK today to discuss your options. 

8 Ways Your Business Can Thrive in a Recession

June 17, 2025
Meeting IT security compliance standards is crucial for businesses that handle sensitive data, particularly in industries such as healthcare, finance, defense, and e-commerce. Regulatory frameworks such as HIPAA, CMMC, PCI-DSS, and GDPR exist to help ensure businesses protect customer information and maintain robust cybersecurity practices. Unfortunately, many organizations fall short of these requirements, often due to common, avoidable mistakes. These gaps can result in costly fines, data breaches, and reputational damage, which can significantly impact the business's bottom line and customer trust. 1. Failing to Conduct Regular Risk Assessments The Pitfall: Many businesses overlook the importance of conducting routine risk assessments. Without these, it’s challenging to identify vulnerabilities or evaluate whether your current cybersecurity controls meet compliance standards. How to Avoid It: Implement a regular risk assessment schedule. Work with a qualified IT provider to evaluate your systems, identify weaknesses, and document remediation plans. These assessments should be performed at least annually, or whenever significant changes to the system occur. 2. Inadequate Employee Training The Pitfall: Your employees are your first line of defense—and often your most significant vulnerability. A common compliance issue arises when businesses fail to train staff on cybersecurity best practices or on handling sensitive data appropriately. How to Avoid It: Invest in ongoing cybersecurity awareness training. Ensure employees understand how to recognize phishing emails, create strong passwords, and report any suspicious activity. Training should be updated regularly to reflect current threats and compliance requirements. 3. Improper Data Handling and Storage The Pitfall: Storing sensitive data in unsecured locations, failing to encrypt information, or retaining data longer than necessary are significant compliance risks. These practices are often flagged during audits. How to Avoid It: Adopt data classification policies that define how different types of data should be handled; encrypt sensitive data both at rest and in transit. Establish clear data retention policies and ensure that obsolete data is disposed of securely. 4. Lack of Incident Response Planning The Pitfall: When a security incident occurs, time is of the essence. Many businesses lack a documented incident response plan, or their existing plan hasn’t been thoroughly tested. This can lead to delayed responses, increased damage, and regulatory penalties. How to Avoid It: Develop a formal incident response plan that includes roles, responsibilities, communication protocols, and steps for containment and recovery. Run simulated breach scenarios with your IT team to ensure everyone knows how to respond effectively. 5. Using Outdated Software or Systems The Pitfall: Running outdated operating systems, software, or firmware is a common issue that can lead to compliance failures. Unsupported technologies are more vulnerable to exploitation. How to Avoid It: Keep all systems and applications up to date with the latest patches. Use automated tools to track software versions and receive alerts about end-of-life technologies. Schedule regular maintenance windows to apply updates and upgrades. 6. Insufficient Access Controls The Pitfall: Allowing too many employees access to sensitive data—or failing to revoke access when it’s no longer needed—can lead to data breaches and non-compliance. How to Avoid It: Implement role-based access controls and follow the principle of least privilege. This principle means that each user should have the minimum level of access necessary to perform their job. Regularly audit user accounts and permissions to ensure access is current and appropriate. Use multi-factor authentication (MFA) to add an additional layer of protection. 7. Neglecting Third-Party Vendor Risks The Pitfall: Businesses often overlook the fact that their compliance responsibilities extend to third-party vendors. If a vendor mishandles your data, you could still be held accountable. How to Avoid It: Vet third-party vendors carefully. Ensure they meet the same compliance standards as your business and include security requirements in your contracts. Conduct periodic audits or request compliance certifications from your vendors. 8. Failing to Document Policies and Procedures The Pitfall: Even if your security practices are strong, failing to document your compliance policies can result in audit failures. Regulators want to see evidence that you have formal processes in place. How to Avoid It: Create and maintain clear documentation for all compliance-related policies, including data protection, access control, incident response, and employee training. Make these documents easily accessible for audits and regularly review them to ensure updates are current. Conclusion Compliance with IT security standards is not a one-time project—it requires ongoing attention, regular updates, and a proactive approach to maintain effectiveness. By understanding and addressing these common pitfalls, your business can stay ahead of regulatory requirements, strengthen its security posture, and reduce the risk of costly incidents. This ongoing attention is crucial to maintaining your business's security and audit readiness. If you’re unsure whether your business is meeting current IT compliance standards, professional support can help. Contact SDTEK today to schedule a compliance assessment and learn how our IT services can keep your business secure and audit-ready. With our support, you can navigate the complex landscape of IT security compliance with confidence.
April 9, 2025
In today’s digital-first world, cybersecurity isn’t just a luxury—it’s a necessity. Whether you run a small startup or a growing enterprise in Fort Wayne , protecting your business’s data, systems, and clients is essential for long-term success. From ransomware attacks to phishing scams, cyber threats are evolving every day, and the best way to stay ahead of them is by partnering with a reliable IT services provider that understands the unique needs of local businesses. Here’s why investing in professional business IT support is one of the smartest decisions Fort Wayne businesses can make—and how working with SDTEK helps protect your operations, your data, and your reputation.