Asaf Darash is the founder and CEO of Regpack, an online payment management platform. He holds a Ph.D. in New Media.
U.S. gross domestic product shrank by 0.3% in the first quarter of 2025, the first contraction since the beginning of 2022, according to The Guardian. That might sound small, but the implications are loud. Economists’ forecasts for a U.S. recession have fluctuated in recent months, and at the time of this writing, the odds of a recession are “still higher than usual,” Forbes reported.
In my view, the businesses that thrive in times like this aren’t the biggest or the flashiest. They’re the ones with an infrastructure that’s efficient and flexible. I believe that when revenue tightens and uncertainty grows, your company’s ability to adapt doesn’t come down to how many people you have but to how your systems work.
Currently, companies appear to fall into one of three categories: First, there are those with fragile infrastructure; they have legacy systems, clunky processes and manual workarounds that buckle when pressure hits. Then there are those with decent infrastructure—some automation, some streamlined operations—but still reliant on headcount to get through the day. Finally, there’s the ultra-optimized organization—the one that looks bulletproof from the outside but is often so lean that it lacks the flexibility to pivot quickly or absorb change without breaking something critical.
The truth is simple: In difficult economic times, your infrastructure is a critical component of your survival.
Weak infrastructure can force desperate decisions.
For companies with underdeveloped systems, market disruptions aren’t just stressful; they can be devastating. With no streamlined workflows or integrated processes to rely on, these businesses may face an immediate and painful reality: cut fast or collapse. The first and often only lever available is headcount. That’s not because they want to make those cuts but because they have no other way to lower costs.
Manual work can compound the problem. Without automation, the tasks that keep a business moving forward require more people, more time and a higher risk of error. And when the team gets smaller, what used to be manageable risks becoming chaotic. Projects could slow and quality could drop, which can cause customer trust to erode.
This is a failure of infrastructure. You can’t right-size a team when the systems behind them aren’t built to flex.
An OK infrastructure can buy time but might not go far.
Some businesses are in better shape. They’ve upgraded parts of their workflow. They might use a customer relationship management system, project management tool or basic marketing automation system. In difficult times, their core services may stay intact and clients get what they need, but things might start to strain underneath.
What can happen next is slow erosion. Without a robust infrastructure in place, if an employee departs, companies will experience more drag. Deadlines stretch. Innovation gets pushed. The team moves from proactive to reactive. These companies aren’t failing, but they aren’t moving forward either. Stagnation is just a slower path to decline.
Even optimized systems can break under pressure.
Advanced, optimized companies often appear well-insulated against downturns. They have top-tier tools, advanced process documentation and optimized workflows. However, many of them lack flexibility.
Hyper-optimization can become rigidity. Many organizations operate with no slack, no redundancy and little tolerance for change. They’ve already trimmed the fat—and some muscle, too. But if the economy takes a turn, these companies may not have people to lay off or budgets to reduce. When systems are deeply integrated, it takes longer to implement change across teams. What looks like operational excellence in a growth economy can become a liability when speed is required. Optimization only works when it doesn’t come at the cost of adaptability.
The right tech stack can support flexibility.
Organizations can use technology to help do some of the heavy lifting when conditions aren’t ideal. This can allow teams to stay lean without getting overwhelmed. One area businesses can explore is cloud-based Software-as-a-Service. This can provide companies with flexibility and scalability in the face of economic shifts. You can scale these systems up when business is booming or pull back without sacrificing service when things slow down.
With the right SaaS stack, businesses could eliminate repetitive tasks, centralize data and improve team collaboration. Businesses can implement tools that take on the operational grunt work that drains time and energy without generating value. This can free up your team to focus on what only humans can do: strategy, empathy, creativity and leadership.
Don’t overhaul everything. Just fix what’s broken.
You don’t need a full-scale digital transformation to start. Begin with the friction points—the areas your team constantly says are “a mess,” “slow” or “manual.” These are your most significant opportunities for impact.
Then, look for SaaS platforms that address those specific operational gaps, such as project management, communication, financial reporting, customer experience and documentation. The proper infrastructure should remove blockers, not add more layers.
When selecting a SaaS software to work with, it is important to take note of the data structures in use. This might sound very technical, but this will determine if it will be simple to move away from the solution in case it is insufficient or costly. The tool’s data structure will define reporting possibilities. If a company needs a certain type of data structure, such as parent-child, it would be detrimental to their operations if the tool can’t support it. It might be possible to work with the software, but then moving to a different solution in the future will likely be complicated.
Remember that tech isn’t a silver bullet.
Of course, it’s also important to note that simply using SaaS tools is not a silver bullet. While it can be a good place to start, organizations may need to take different or more extreme measures to navigate uncertain or recessionary times, such as negotiating supplier deals, cutting out unnecessary expenses, approaching employees with the ability to take a salary cut for a set period of time or possibly layoffs.
Recessions are brutal—but they’re also revealing. They expose what your business is made of and whether your operations are designed to bend or break under pressure. And I believe companies built on flexible, scalable infrastructure are in a better position to adapt.
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