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5 Strategies for Building Business Resilience in Changing Times

By Diane Amato

Published September 23, 2025 • 7 Min Read

TLDR

  • The Bank of Canada’s Q2 2025 Business Outlook Survey reveals a cautious but resilient Canadian business landscape, underscoring the need for adaptive planning

  • Proactively diversifying your revenue streams can help your business defend against uncertainty

  • Strong cash flow management and flexible financing options can help businesses weather economic headwinds

  • Connecting with customers, investing in employee engagement and leaning into digital opportunities can drive efficiency and stability

RBC Economics1 recently revised its outlook for Canada’s economy, projecting modest growth of 1.6% in 2025 (up from earlier estimates of 1%) before slowing to 1.3% in 2026 — signaling a softer but resilient landscape for Canadian businesses.

What’s more, recent data from the Bank of Canada’s Q2 2025 Business Outlook Survey indicates that only about one-third of companies now expect higher tariff-related costs — down significantly from around two-thirds last quarter. As the overall business outlook indicator has eased, falling to -2.42, roughly 28% of companies now anticipate a possible recession, slightly lower than in previous quarters.

What does this mean for business owners?

Despite ongoing uncertainty around inflation, international trade and consumer confidence, the outlook has become somewhat clearer than earlier this year. Many businesses, however, are taking steps to build resilience — tightening cash flow, reducing discretionary spending and improving customer retention. They’re also tapping into financial tools for key support — such as lines of credit, cash flow calculators, and payment solutions — to better navigate potential headwinds.

There are other ways to build resilience, too. If you’re looking to steer your business through the near future with confidence, here are five steps to consider:

1. Build your resilience with diversification and planning

Canadian entrepreneurs have repeatedly shown resilience in uncertain times. A key strategy is diversifying revenue streams, so that no single product, service, or market holds all the risk. Expanding into new geographies, launching additional services or reaching new customers can help reduce exposure to sudden shifts in the economy, demand or supply.

Scenario planning is equally important. By mapping potential risks and outlining best-case, expected and worst-case scenarios, you create a playbook to respond quickly to disruption. This helps you identify potential pitfalls, cash shortfalls or weaknesses in your business model before they become critical.

Try this free RBC cash flow calculator to create a variety of realistic cash flow projections.

2. Optimize efficiency with less

Running a lean business doesn’t mean cutting corners — it means sharpening your operations so that it’s running as its most productive. Here are some areas to focus on:

  • Streamline processes. Look for ways to simplify day-to-day workflows, allowing your team to focus more on what really drives results. Automate repetitive tasks like invoicing, reminders and reporting to save time and reduce errors. Standardizing communications — such as client emails, social media posts and order fulfillment — can keep projects moving and customers engaged.

  • Optimize your budget. Review office space needs, consider gently used vehicles, computers or equipment, negotiate with suppliers and review your monthly expenses to see if you can trim costs on utilities, internet or cell phone services. It’s also a smart move to conduct an inventory analysis, so you can direct your time and money toward what is selling instead of holding onto unsold items.

  • Popular Read: 5 Tips to Help Find Hidden Savings and Offset Rising Business Costs

  • Invest in technology. While it may feel counterintuitive to invest in technology when money is tight, it may, in fact, be the best time to do so. The right tools can automate routine tasks, improve productivity and provide insights that help you make better decisions.

Tips to consider:

Learn more: 5 Ways to Digitize Your Business in a Virtual Economy

3. Build a cash reserve and manage debt

A healthy cash reserve and a manageable level of debt may give your business the flexibility it needs to handle surprises. Consider whether there are additional ways to bring in funds. For example:

  • Raising capital from either investors or relatives.

  • Negotiating strategic payment terms with customers, like offering small discounts for up-front payments, can help improve your cash flow, even if the payment amount is slightly lower.

  • Tapping into money from government grants, business relief programs, or financing solutions such as the RBC Business Accelerator Loan.

When it comes to debt, the key is to keep your balances manageable — when managed wisely, debt can be a tool to fuel growth. By regularly reviewing your obligations and avoiding unnecessary borrowing, you can free up cash flow, bolster your financial position and create the flexibility to act on opportunities.

Learn more: Should You Borrow to Help Grow your Business? 6 Questions to Ask — My Money Matters

4. Invest in customer acquisition and retention

With Canada’s economy expected to experience modest growth and uncertainty, your customer relationships will be critical to sustaining performance.

Focusing on both acquisition and retention can help ensure your business remains resilient. After all, loyal customers may provide stability while new ones fuel growth. As customer needs shift in response to rising costs or evolving priorities, staying connected allows you to anticipate challenges, deliver meaningful support and nurture loyalty. Simple actions like communicating proactively, providing personalized service or offering extra flexibility on things like payment terms or returns can help make your business stand out when budgets are tight.

5. Develop an agile and resilient workforce

Your people are the backbone of your business — so it stands to reason that building resilience starts with them. Investing in training and development will equip your employees with skills they need to adapt and innovate, all while creating a culture that celebrates curiosity and growth.

At the same time, supporting your team helps maintain continuity and operational efficiency — especially in times of change. At a time when retaining talent is as important as attracting it, prioritizing your employees’ growth is a strategic way to boost productivity and sharpen your competitive edge.

Bottom Line:

Canada’s changing economy is creating new challenges, and business owners are feeling the pressure of uncertainty. Strengthening your operations — whether by diversifying revenue, managing cash flow, or investing in the right technology — can help you stay prepared for whatever comes next.

Today’s economic landscape has been anything but predictable. Keeping up with what’s happening, and how it affects your business, is a constant job.

These resources can help you and your business remain adaptable for whatever the future will bring:

Read more: Tariffs FAQ: Top Questions Asked by Canadian Businesses – My Money Matters

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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