Inflation is at near historic levels, and policymakers show no sign of stopping the activity that led to it. Consumer confidence has plummeted to pretty much rock bottom, individual debt is skyrocketing, and the credit markets are tightening. Every key indicator says we’re going to be facing a brutal recession in the very near future.

It’s not all doom and gloom, though.

Some of the biggest opportunities come from challenging times like we’re about to face.

Think of it like a reshuffling of the game board. We’ve been riding on easy street for a while now, with ridiculously low interest rates, easy credit, and a steady stream of buyers lining up to jump headfirst into bidding wars. It was easy for people to make a lot of money over the last few years because of this. But that’s already changing, and in the coming months and years. the changes are going to get bigger and come faster.

This means opportunities are going to arise as people who don’t know how to run a business during economic uncertainty and difficult times start to go under. And as the market evolves, entirely new products, services, and even business models will be created, leading to even more opportunities.

But you need to be financially literate, strategic, and able to adapt to a rapidly changing environment.

So as someone who has weathered several economic downturns and has the scars to remind me of the critical lessons learned, I’m going to share a battle plan you can use to thrive through economic uncertainty — whether you're an individual trying to keep your career and finances on track, or a business owner.

Position your company as a high-value brand

When times are tough, most peoples’ reaction is to slash prices in hopes of making up losses through volume.

They believe that price is the driving factor in consumers’ buying decisions, and that if they can just get the price low enough, they’ll be insulated from the market challenges.

The problem with that mindset is multifaceted.

First, it leads to increased work and decreased revenue—a disastrous situation and the exact opposite direction you need to go.

Next, it leads to a race to the bottom, with companies undercutting each other to get the business. Any wins here tend to be short-lived because your customers will leave you just as soon as another company is willing to offer them a lower price.

And finally, this will cause your brand to be perceived as a commodity, which can hurt your company for years to come.

Instead, you need to find ways to add more value and target a more sophisticated demographic.

Identify the type of customers who are more concerned with an exceptional product or service, rather than those who are just looking for the cheapest price so they can check a box.

Then you need to figure out their needs, what truly matters to them, and why they need what you provide.

From here, you can package your offering in a way that over delivers on a massive scale, and charge a premium for it. This will attract the right prospects while repelling the wrong ones, which means happier, more satisfied customers and less work and higher profit margins for you.

This gives you a tremendous advantage over your competitors competing on price.

Prune everything unnecessary from your business

Everyone cuts costs during an economic downturn, but it’s important to be both bold and surgical here.

Rather than simply cutting every expense you can, you need to determine its impact. Sure, you might cut perks like footing the bill for coffee and snacks, but it would probably be a bad idea to cut a piece of software that doesn’t cost much but saves your team hours of work.

Every cut should be strategic—it’s not just a numbers game.

It’s also worth noting that it might, depending on your circumstances, be smart to cut your own salary. That demonstrates a level of commitment that few employers have today, and sends a clear message to your team that you truly care about them and their jobs.

And it’s not just financial costs you’re cutting here. You should also cut underperforming products or services. If few people are buying one or more of your offerings, or those offerings are low-margin profit centers, you should probably get rid of them and focus on higher-volume, higher-margin offerings.

Prepare for the future of your industry

During a recession, many companies struggle or go out of business because they failed to adapt.

While change can be scary and difficult, it’s often easier when you’re already in the middle of other changes. That’s why an economic downturn can be the perfect time to make major changes to your business.

This might include smaller changes like adding or eliminating products or services, bigger changes like transforming the way your business operates, or massive changes like complexly changing course.

Case in point—today, we know LG as a brand that manufactures TVs and appliances, but that wasn’t always the case. In 1958, the company made a leap from health and beauty products like plastic combs and toothpaste, and entered the world of electronics. In doing so, the brand became a powerhouse competing on a global scale.

A recession is the perfect time for moves like this because so many things are in flux.

As companies go out of business, consumer needs change, and industries transform, new, and often massive opportunities tend to pop up frequently. And the companies that stand ready to adapt to these changes can go from tiny and obscure to industry titans virtually overnight.

So it’s critical to pay attention to what’s going on in the trenches on a day-to-day basis, but it’s equally important to look at trends and try to predict where the industry is going.

As the NHL hockey legend, Wayne Gretzky, was famous for saying, “I skate to where the puck is going to be, not where it has been.”

If you have any doubts as to how important this concept is, ask yourself this—when was the last time you saw a Blockbuster video store?
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Lori Greymont is a seasoned real estate investor, creator of the hit TV show, Funding Faceoff, and founder of a private mastermind community with the mission to help 5,000 real estate entrepreneurs get their real estate deals done and create true financial freedom.