Preparing for uncertainty: a checklist for business leaders

Whether it was through financial safety nets, digital infrastructures or clear communication, those companies were better positioned to adapt. For leaders today, they understand that another global crisis is going to happen again. The question is: will your business be ready? 

While the specifics of the next big disruption are impossible to nail down, you can still prepare. We’ve created a checklist designed to help your organisation stay resilient and poised for growth, no matter what challenges arise.

Build a financial safety net

One of the most critical factors in surviving economic uncertainty is financial preparedness. It’s never about just keeping the doors open; it’s more a case of ensuring you can make calculated, strategic decisions in challenging times.

We recommend maintaining at least three months of operating costs in a high-interest savings account (currently yielding around 4%). A financial buffer allows you to continue operations and maintain your workforce without resorting to drastic measures like layoffs or cutting essential services.

Think about how your business would function if revenues were cut in half or temporarily halted. A solid contingency fund provides the flexibility to handle these disruptions while allowing you to make decisions from a position of strength rather than survival.

Make sure your SOPs are kept up to date, and schedule regular training to familiarize your team around where to find key resources. In doing so, you can reduce unnecessary reliance on leadership for day-to-day operations so the team can keep moving forward, even when managers or senior staff are unavailable.

Opt for short-term contracts

Flexibility in vendor relationships, particularly with office leases and other fixed costs, can make or break a business in times of uncertainty. Businesses locked into long-term leases or restrictive agreements during the pandemic found themselves at a huge disadvantage when trying to adapt to the rapidly changing environment.

Remember back in 2020 and the panic surrounding long-term office space?

To avoid this scenario, consider short-term contractual agreements wherever possible, particularly for high-overhead commitments like office space or services. This approach gives you the ability to downsize or pivot operations if needed, without being tethered to long-term obligations. 

Flexibility in cost management allows you to react quickly to any market changes and reduce the financial strain during unforeseen events.

Secure recurring revenue streams

One of the most reliable ways to create stability during turbulent times is to develop recurring revenue streams. Whether through subscription services, retainers, or maintenance contracts, having predictable, recurring income provides financial visibility and reduces dependency on volatile revenue sources.

Recurring revenue also gives you more control over your cash flow and helps you forecast with greater accuracy, even in uncertain market conditions. Think more strategic planning and decision-making while maintaining a level of consistency that one-time sales can’t offer.

Businesses that provide continuous value through recurring services typically foster deeper customer loyalty, making it more likely that clients will stick with you even through a downturn.

Final thoughts

Preparing for uncertainty goes beyond survival. It’s really about setting your business up to succeed in any environment. By taking strategic steps, you can put your organization in a great position to defend against whatever challenges lie ahead. What better time than now to assess your current practices and make the necessary adjustments.