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Efficiency

Building a Resilient Business Model in an Uncertain Economy

  • Written By: John O'Hara
  • Blog Post Blurb: In an unpredictable world, rigidity breaks. Build resilient operations, a growth mindset, and strategic flexibility to not just survive, but thrive.
  • Blog Post Offer 1 Description: Start growing your business with the right technology.
  • Blog Post Offer 1 Button Text: Book a consult now
  • Blog Post Offer 1 Link: https://meetings.hubspot.com/andrea-hill/15-minute-consult-with-andrea

We hoped things would return to normal, or at least stabilize around a “new normal,” after the pandemic. What we got is anything but. Continued supply chain disruptions, war, tariffs, inflation, disruptive new technologies, and an unstable global order have marked the post-pandemic era. Who could have predicted some of the events of the past few years? Unpredictable events aren’t all bad, but even “good” unpredictability can disrupt your business all the same if you’re not ready for it. For example, what if one of your products takes off unexpectedly, but you don’t have the capacity to meet the demand? You never know what’s just around the corner. If you can’t predict the future, then you should do the next best thing: build resilience into your business so you can adapt to any change, no matter how unexpected.

Strategic Foundation

The success of any business begins with strategy. Your strategy lays out who you are, what you do, and what makes you unique, and translates that unique selling point into a plan to reach a particular set of customers through actionable, measurable goals.

A strategy of resilience includes a growth mindset baked in at the level of strategy. People and organizations with a growth mindset understand that we can learn new things, master new concepts, and constantly grow and develop throughout our lives. Those with a fixed mindset, on the other hand, believe that they know what they know, they are who they are, and they can never change or grow. A growth mindset is adaptable, curious, and confident. A fixed mindset holds you back by telling you, “I can’t do that. That’s not me. That’s not how I work. I can’t learn something new. I have to stick to what I already know.” When a growth mindset is a part of your strategy, you will be ready to shift gears at a moment’s notice knowing you can learn and do whatever you have to in order to overcome any challenge.

Operational Resilience

Operations encompasses the production process, product development, process documentation, customer service, and everything that keeps your business running on a day-to-day basis, along with the technology your operations run on.

Successful operations departments are built on consistent and repeatable processes so that no matter who is completing the task, it can be done the same way, to the same standard. Process documentation is not something you can do once and forget about. The rapid changes in technology, the economy, and the workforce mean that processes must be continually improved. There should be a process in place for improving processes, as well, in which employees can suggest and test changes and then implement the most successful ones.

It’s hard to achieve operational excellence without the support of the right technology. But what do you do when that technology fails? This is where system redundancy and diversity have to be built into your operations. Do you have backups of your website? If your cloud storage service (Google Drive, Microsoft OneDrive, Dropbox) experiences an outage, how will you access your files? How will you process payments if PayPal goes down?

While these things don’t happen often, they do happen. In 2024, a bugged update to cybersecurity software CrowdStrike crashed over 8 million business and government computers running Windows, resulting in $10 billion in losses. 2025, meanwhile, saw web infrastructure provider Cloudflare suffer three major outages in a row in September, November, and December, outages that brought down services as diverse as LinkedIn, the graphic design platform Canva, and the multiplayer online video game Fortnite.

It's not just tech that needs redundancies. What will you do if a key piece of equipment breaks down or a key employee leaves? What if supply chain disruptions or changes to tariffs mean you no longer have access to a key supplier or manufacturer? Developing risk assessment and mitigation strategies lays the groundwork for a resilient business that is ready for these kinds of emergencies.

A growth mindset is key in operations. Sometimes, the only valid response to an unprecedented crisis is an unprecedented solution. A business built on a fixed mindset will say, “We can’t do that. It’s never been done before. I guess it’s over for us.” A business with a growth mindset will do what seems impossible while constantly monitoring and improving their processes as they sail uncharted waters.

Supportive Culture

Building a growth mindset into your strategy involves encouraging and providing opportunities for growth and learning in your employees. Just as you are constantly reviewing and improving your processes, your employees should be empowered to constantly improve their skills, becoming more knowledgeable, more confident, and more resilient along the way.

Culture goes beyond the office or shop floor. It encompasses all of your stakeholders and networks, from suppliers to customers. If you’ve built solid, mutually beneficial relationships with all of them, you’ll be able to help each other through times of stress and come out stronger on the other end.

Resilience is Foundational

In areas prone to earthquakes, old buildings have to undergo seismic retrofitting to make them more earthquake-resistant. One technique for making these buildings stronger is called “selective weakening,” a process that involves finding the most rigid parts of the building and making the building “weaker” by removing them. It seems counterintuitive, but when you’re facing something that can shake you to your foundations, rigidity and inflexibility is a weakness. To withstand earth-shaking economic and social changes, standing firm and fixed in place will only result in collapse. Being able to shift and wobble without toppling as the ground moves under you is how you not only survive but grow in an uncertain economy. 

 
 
 
 
 

Phase Out Legacy Systems and Modernize Your Business

Recently, Forbes reported that hackers discovered an exploit in the code of Windows 10 and 11 as well as older versions of Windows Server that allows them to force a machine to open a URL with the less-secure Internet Explorer browser, which Microsoft has retired in favor of the safer Edge browser. The URL then gives the hackers control of the computer. As a result, the US government has warned Windows users to update their computers or stop using them. Vulnerabilities like this one are exposed and then patched by developers almost every day. Most users will remain safe if they update their software regularly.

If you’re using a legacy system, however, the developer may no longer be releasing updates, and your computers—and your business—will remain at risk. This kind of security exploit is just one of the many dangers of relying on legacy systems.

Sometimes, outdated software or hardware is so deeply entwined with your workflow that you can’t imagine working without it. Game of Thrones writer George R. R. Martin, for instance, still writes on WordStar, an MS-DOS word processing program first released in 1978. But when it comes to business applications, especially those that are cloud-based or connected to the internet, hanging onto a 40-year-old legacy system would do little more than keep an organization from reaching its potential. Stepping into the unknown comes with some risks, but with a clear strategy guiding the process, you can make your business more secure, efficient, and scalable.

What Is a Legacy System?

The term “legacy” denotes something with a long and storied history that has lost a bit of relevance. Legacy systems are those software applications or other technologies that have become obsolete, whether because the company has outgrown the tech’s usefulness or because newer tech can do what a legacy system does more efficiently. Legacy systems include outdated programs like Windows 7 or that Quickbooks program you’ve refused to update since 2014, the inventory management system you so proudly wrote in Filemaker Pro in 2011, websites still running on the long-since-abandoned Adobe Flash, and mainframe systems that nobody under the age of 73 knows how to support any longer.

The Dangers of Relying on Legacy Systems

Replacing legacy systems isn’t just about being on the cutting edge for the sake of it. Relying on outdated technology can pose a real threat to your business. First of all, old systems may no longer be supported by their developers, who prefer to put their resources into supporting their latest applications. If a piece of software is no longer supported, that means the developers are not releasing new updates to fix bugs or security workarounds known to hackers. This means that if you have a problem with the tech, you might not be able to get help for it. More importantly, company data and private customer information could be at risk.

Compatibility with newer technology is another issue you face with outdated programs. When you update to the newest version of your operating system, for example, you might find that the program designed for a twenty-year-old operating system no longer works correctly, if at all. If an unsupported program is the centerpiece of your tech stack, you might find that it does not support the ecommerce integrations or marketing automations so vital to the modern business.

Finally, old systems could simply be slowing you down. They might take forever to boot up, they might have unintuitive interfaces that take minutes rather than seconds to navigate, or they might be prone to crashing. All of these minor inconveniences add up over the course of months.

When Is It Time to Modernize?

If the above dangers seem all too familiar to you, it might be time to modernize your tech stack. It’s possible that you haven’t run into any issues relying on an ancient program, but with tech that is no longer supported, it’s less a question of “if” than “when” you will run into security or compliance issues.

An old system that you’ve been using for ages and know well is fine if you’re a one-person operation with just a handful of customers. But if you have any desire to grow, it’s better to start modernizing now. No matter the application, there is tech out there that can grow with you, especially today in this era of software as a service, where developers offer various tiers of service with features designed for businesses of different sizes.

Planning Your Modernization Strategy

Adopting a new technology is a major change for a business. Getting it right often requires working closely with vendors and experienced consultants who know what can go wrong and how to prevent it. Every company’s modernization strategy will look different, based as it is in each company’s industry, size, and growth goals, but there are a few broad steps most businesses will take when upgrading legacy systems.

If you want to know more about choosing the right technology solutions for your business, check out this article

Analyze Your Tech Stack

The first step is to evaluate your current systems according to the guidance above. Are you facing any of the dangers associated with legacy systems? If so, then it’s time to look for an upgrade.

When evaluating any new software, analyze it in terms of your current tech stack and your overall business strategy. You’ll want a system that can scale with you, that is affordable, and is within the capabilities of your staff. There are also regulatory and compliance issues to consider, depending on your industry. You can find a more in-depth guide to choosing the right technology here.

Evaluate Your Approach

You might find that you need to rebuild your tech stack from the ground up, or it may be the case that just a single part of it is outdated. However many systems need to be replaced, consider how the new tech will integrate with what you’ve decided to keep. If you are replacing several systems, there may be a single piece of software that can do what used to require multiple, separate applications.

Make an Implementation Plan

With your IT team, determine if it would be better to slowly phase out a legacy system piece by piece or all at once. Whether your plan is to modernize gradually or swiftly, you’ll need a data migration plan that will move your data securely and cleanly (that is, without errors) from the old system to the new one.

Provide Ongoing Training and Support

Your new system might not be running perfectly from day one. People need time to learn the software and acclimate to new workflows. Make this transitional period as smooth as possible by working with developers who provide all the documentation and support you’ll need.

Get the Right Help

Updating legacy systems is time-consuming but necessary for both keeping your systems secure and your business running efficiently. Avoid the common pitfalls and the often overwhelming decision-making process by working with people who have experience in implementation and expert knowledge in all manner of business software. ProsperWerx is here to help you get a handle on the tech that supports your business so you can get back to doing the work you love.