Tips for Maintaining Resiliency in this Economic Downturn

Tips for Maintaining Resiliency in this Economic Downturn

Inflation, supply chain disruptions, rising interest rates—oh my! The economy is going through a lot right now. In these uncertain times, businesses can work to overcome economic volatility with confidence by staying proactive with these tips to bolster your business’ resiliency. 

Focus on core assets

Protect the areas of your business that produce the most revenue. Customer retention is crucial, especially in this economic downturn. Ensure that your organization is delivering on your customers’ expectations. Employees are your greatest asset—remind them as such and keep the lines of communication flowing.

Zero in on your cash flow strategy

Think of your business’ cash flow as a bucket of income and leakage. Leakage refers to your excess expenditure that is draining your bucket of income. Now is the time for businesses to reduce leakage by plugging holes in the cash flow bucket.

Renegotiate with suppliers, if possible

Keep an eye on price increases and don’t be afraid to ask for a payment plan or financing for more expensive items, but look closely at the terms. Diversifying your vendor pool can help decrease your overall risk while increasing your negotiating power.

Optimize your insurance portfolio

As your business changes and evolves, so will your insurance portfolio. Ensure that your insurance policies align with your organization’s operations. Combat the tide of rising premiums by optimizing your coverage.

Invest in loss control strategies

Prevention is always less expensive than damage control. Stay proactive in your business’ loss control by investing in employee safety training, continuing education, and the use of telematics to halt issues before they arise.

Understand the high interest environment

Interest rates will likely continue to climb until inflation is under control, presenting a myriad of challenges for businesses. Always consult with your financial leaders, insurance advisors, and attorneys before agreeing to take on new debt.

Partner with the right broker

The right broker can help protect organizations from the increased risks that come with an unstable economy. Aligning your business goals with a partner who creates insurance solutions tailored to your needs is a vital reinforcement in any economic climate.

Choose an area to implement change

Compartmentalize your risk management strategy into three areas: how the market views your business, what losses you experience, and who you choose to walk you through this marketplace. Evaluate each area to identify which needs the most immediate improvement.

Though unexpected situations seem to loom around every corner, there are steps to proactively position your organization for success in the eye of the storm. Partnering with a team of advisors experienced in navigating all market states provides you with the comfort and support needed to fortify your business for whatever comes next.


This material has been prepared for informational purposes only. BRP Group, Inc. and its affiliates, do not provide tax, legal or accounting advice. Please consult with your own tax, legal or accounting professionals before engaging in any transaction.

Comments are closed.

Table of Contents

Recents Post
June Pulse
June 2024 The Pulse Newsletter
Golf cc hospitality state of the market
Hospitality, Golf, and Country Club Market Update
Heat Related webpage
Heat Illness and Workers' Safety Precautions

This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. Baldwin Risk Partners, LLC (“BRP”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. BRP does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, BRP does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.

Baldwin Risk Partners, LLC offers insurance services through one or more of its insurance licensed entities. Each of the entities may be known by one or more of the logos displayed; all insurance commerce is only conducted through BRP insurance licensed entities. This material is not an offer to sell insurance.

Get in contact with an advisor today to see how BKS can support you.