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Seven Steps To Recession-Proof Your News Business

By Tracie Powell

December 8, 2022

Illustration of man holding a shield with a header "Recession Proof: 7 Ways to Beat Hard Times"

This week I attended a webinar hosted by Bank of America at the Russell Innovation Center for Entrepreneurs (of which I am a stakeholder), where bankers delivered advice on how small businesses and nonprofits can prepare for an economic downturn. Their conversation echoed an earlier discussion The Pivot Fund hosted last month with news leaders about actions they are taking ahead of a likely recession. I’ve boiled down their advice into seven easy steps any news outlet can follow.

  1. Create an adequate cash flow plan. Have enough incoming and outgoing cash to meet expenses. Have a budget and stick to it.
  2. Hold onto money, don’t spend it. Be careful of expensive purchases, especially when there’s no pressing business need. If it is iffy that the acquisition will promote business growth, then reconsider making it.
  3. Secure capital before you need it and store it. Businesses should have six months of reserves in the event of an emergency. That buffer gives owners the confidence to operate seamlessly and make better, value-enhancing decisions. 
  4. For startups, cash-on-hand is more important than net income or profitability. The cash provides flexibility if things get too tight. Cash is king!
  5. Assess your workforce. Be sure to have the number of people with the right skill set to effectively run the business.
  6. Be patient. How have legacy news outlets weathered the storms from one generation to the next? They understand the importance of sitting still and not panicking in times of uncertainty.
  7. If you make cuts in personnel or content, ensure it’s not visible to readers, viewers, or listeners. Whatever you do, continue to invest in your customer. Without them, there is no business.

In case you missed The Pivot Fund’s session on How to Recession-Proof Your News Business, you can watch it here: 

The Pivot Fund provides grants and wrap-around services, including mentoring assistance, training, small and large group workshops, peer-to-peer discussion groups, and online learning to help BIPOC community-led-and-serving news outlets build organizational resiliency and increased sustainability.