For more than a decade, the global economy has been steadily growing. However, many economists predict it could slow down in 2023.
While we cannot be sure about the future, an overwhelming majority (83%) of businesses are concerned about a recession in 2023. With inflation, rising unemployment, and constrained global supplies, companies must implement a long-term strategy to build resilience and thrive during the economic downturn.
A recession can be an opportunity for businesses to grow. Some consider a recession a “healthy clean-up” of overall business strategy.
Preparing for a downturn is prudent as we reach that time when business leaders are thinking about budgets and strategy frameworks for next year. Around 50% of organizations plan to take precautionary measures to prepare for an economic slowdown in 2023, and 85% of CEOs intend to increase investment in digital capabilities in 2023.
The best way to protect your company against a recession is to plan. Here are six strategies to help your company prepare for a possible recession next year.
Strategy # 1: Focus on Digital Strategy
Digital deployment enables organizations to reduce business costs while meeting current and future customer and employee needs. It’s also an opportunity to experiment with disruptive innovations and technologies, ensuring that they receive adequate funding and that the appropriate risk appetite is established.
Strategy #2: Update Existing Technology
When the global economy is uncertain, it is critical to maintain and optimize the tools and systems you already have in place. Get the most out of your work applications by ensuring they have the most recent updates.
Strategy #3: Secure Talent
As the rate of layoffs in the tech sector rises, digital talent remains scarce and expensive. It is critical to distinguish and prioritize digital skills and talent needs to hire the right high-potential talent profiles and ensure the continuous renewal of workforce capabilities that support changing digital business needs.
Strategy #4: Invest in The Cloud
Cloud computing allows your business to be more agile, take advantage of opportunities and reduce losses by scaling up and down as needed. Companies can design flexible usage-based pricing plans and pay for services based on usage without making a significant capital investment.
Strategy #5: Improve Cybersecurity Protection
As the number of remote and hybrid workers grows, so will the use of personal devices to access company systems and data; therefore, cybersecurity must remain a top priority to protect your organization and avoid breaches that result in significant fines and lost revenue.
Strategy #6: Find Cost-efficiencies
A majority (70%) of CFOs expect to release more funding to digital technology while hoping to reduce costs if inflation persists. While the spending priorities will be talent and digital, the key to saving costs is to avoid common cost-cutting mistakes that restrict the organization’s financial health and growth. Concentrate on sustainable digital innovations that optimize current resources and add value to the business.
To prepare for the looming recession, it’s essential to develop a long-term digital strategy and invest in the right digital initiatives that are adaptive, cost-effective, and right-sized.
Turn strategy into action and learn how Invoice Processing Automation and Cloud Printing Management can help your business prepare for uncertainty.