Financial Runways and Multiple Revenue Streams: Your Safety Net in a Recession

By Jenny Holly Hansen | WBN News | May 4, 2025

Whenever I think about preparing for a recession — or surviving one — two words immediately come to mind: runway and diversification.

Having a financial runway and multiple revenue streams isn’t just a nice-to-have during good times. It’s essential when the economy tightens. If there’s one thing every downturn has taught me, it’s this: those who prepare early, survive longer — and often come out stronger.

What Is a Financial Runway?

In simple terms, a financial runway is how long your business (or your personal finances) can keep operating if income drops dramatically.

For businesses, it’s calculated by looking at your current cash and liquid assets, divided by your monthly expenses. If you have $200,000 in the bank and you spend $50,000 a month, you have a four-month runway.

For individuals, it’s the same concept: savings divided by your essential monthly living costs.

During a recession, runway becomes your buffer against uncertainty. It gives you breathing room to adapt, pivot, negotiate, or even ride out the storm without making decisions out of pure panic.

Why a Runway Matters in a Recession

• It buys you time to make thoughtful decisions rather than knee-jerk reactions.
• It protects your reputation — you’re less likely to break contracts, miss payments, or let down customers and employees.
• It allows you to seize opportunities — such as acquiring struggling competitors, investing in discounted assets, or hiring top talent laid off elsewhere.
• It reduces personal stress — giving you the emotional clarity needed to lead through uncertainty.

When the economy gets rocky, the businesses and individuals with the longest runway often have the clearest path forward.

The Power of Multiple Revenue Streams

Cash flow from one source is risky — especially in a recession.

Having multiple revenue streams spreads risk across different markets, customer bases, and economic trends. I’ve seen businesses that diversified even slightly before a recession — by adding a service line, targeting a new customer group, or selling complementary products — survive downturns far better than those that relied entirely on one offering.

Multiple revenue streams mean:

• If one market slows, others can help stabilize income.
• You can pivot more easily toward stronger segments.
• You create more cross-selling and upselling opportunities.

For individuals, the same applies. A side hustle, investments, consulting work — any additional income source provides extra security and flexibility when job markets tighten.

How I Approach Building a Financial Runway and Diversification

• I prioritize saving during growth periods.
  When business is good, it’s tempting to invest every dollar back into growth. I deliberately set aside cash reserves when times are flush to extend my future runway.
• I build conservative expense models.
  I plan my spending based on modest revenue forecasts, not best-case scenarios. That way, surprises don’t derail everything.
• I look for natural extensions to diversify.
  Instead of starting something entirely unrelated, I ask: What other products, services, or markets make sense given what we already do well?
• I monitor cash flow constantly.
  Especially in a recession, I don't wait for a quarterly review. Weekly or even daily check-ins keep me grounded in reality.

Final Thoughts

Economic downturns remind us that nothing is guaranteed — not market demand, not customer loyalty, not even our own jobs or industries. Having a solid financial runway and multiple revenue streams isn’t about fear. It’s about freedom — the freedom to adapt, to breathe, to move intelligently when others are frozen by panic.

When I build my runway and plant seeds for diversified income, I'm not just preparing for the next recession. I’m building a stronger, more resilient future — no matter what comes.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance.

She is also a business development consultant with Impresario Partners, helping Canadian Business expand overseas.

She can be reached at 604-317-6755 or jholly-hansen@wbnn.news. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

Let’s Meet Up:

Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

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