Is your business recession proof?

Strengthen Financial Resilience

• Cash is king: Maintain a strong cash position to weather payment delays.

• Line of credit: Secure access before it's needed; banks tighten during downturns.

• Cost control: Monitor overhead and reduce non-essential spending.

Diversify Revenue Streams

• Market segments: Explore recession-resistant sectors (e.g., healthcare, infrastructure, public works).

• Geographic reach: Consider expanding into stable regions or states with active capital budgets.

Sharpen Project Selection

• Prioritize profitable, low-risk projects.

• Use pre-construction analysis and historical data to vet owners and partners for financial strength and payment reliability.

Maximize Efficiency with Technology

• Leverage tools like Procore, Sage 300CRE, and project forecasting dashboards to identify issues early and optimize resource allocation.

• Automate reporting to spot budget variances fast.

Focus on People & Culture

• Retain top talent with transparent communication, cross-training, and flexible roles.

• Promote a culture of accountability and agility to help teams adapt to changing workloads and scopes.

Evaluate and Tighten Contract Terms

• Ensure clauses cover price escalation, payment timelines, and force majeure.

• Lock in unit pricing where possible and track scope creep.

Build Strong Backlogs

• Focus on quality backlogs (profitable, funded projects) rather than volume.

• Stay engaged with repeat clients and nurture relationships with public sector entities.

Scenario Planning & KPIs

• Run "what if" financial models for 10%, 20%, or 30% revenue drops.

• Monitor key indicators: days sales outstanding (DSO), backlog-to-overhead ratio, and working capital trends.