Entrepreneurs have a lot of reasons for angst.

Economists are predicting a recession. Inflation is eroding customer budgets. Competitors are often responding in a knee-jerk fashion. It begs the question - what can entrepreneurs do to properly plan for this turbulent macro-environment.

We would suggest taking a practical approach. Focus on the short-term until we emerge from the recession. Here's how you can do that.

Focus on your existing customers.

Contact them more often than usual. Meet with them in person. Provide them with actionable ideas on how to manage in this economy. Take it easy on price increases to the extent possible and let them know that you're doing it intentionally because you value their business and want them to succeed. Shift your email marketing emphasis away from client acquisition and towards client retention and churn minimization. A fractional CFO can help you ensure that your revenue plan for 2023 uses accurate unit economics, clarifies your break-even point and captures enough margin to earn a return for your various stakeholders.

Lead your employees with rigour, confidence and steady-handedness.

Your team may be feeling nervous due to the widespread layoffs that occur in advance of recessions. Ensure your stars know that they're safe and sound. Keep them focused on existing customers. Ensure that your talent review processes identify low potential and low performance employees so that they can be managed up or out. Recessions may force you to tighten your belt and parting ways with employees that haven't been measuring up for a few years may make sense. Don't be cruel about it though. Your team will be keen to observe how you handle those that are struggling and may have their livelihoods impacted during the recession. Your contract CFO should have executive leadership skills to partner with you and help you lead your talent management function.

Cut unnecessary expenses.

You may have added a lot of technology solutions to your stack during the economic expansion. Undertake a technology and vendor review to determine if you're getting value from all of those solutions. If not, cut them immediately so that funds can be redeployed towards caring for existing customers and retaining your star employees. Determine if other vendors have let their fees drift unnecessarily high as well. Insurers and professionals may be willing to work with you to cut fees if they became a bit engorged during the expansion. A part-time CFO is a great investment to help you ensure you're not wasting hard-earned money.

Work harder on budgeting and cost control.

A 13 week cash flow model is the standard for businesses that need to control short-term cash flow, expense and profitability during an economic downturn. Your fractional CFO can help you build a cash flow model and update it throughout the year.

Communicate your critical priorities.

Having a communication plan is essential to guiding your team through a challenging environment. Be authentic and candid about expectations, challenges and performance on key priorities. Weave in a well-curated storytelling plan to ensure that your company culture is flexible enough to navigate the economic storm.