The possibility of a recession can be daunting for any business owner, but entrepreneurs from marginalized communities often face additional challenges when navigating economic downturns. Whether due to barriers in accessing capital, workplace discrimination, or a lack of generational wealth, historically excluded business owners must take proactive steps to protect their finances and secure their futures. Here are some essential strategies to prepare for a potential recession and build long-term financial resilience.

1. Diversify Your Income Streams

Having multiple revenue streams can help cushion the blow of an economic downturn. If your business relies on a single product or service, consider expanding your offerings. This could mean launching digital products, offering consulting services, or tapping into passive income sources like affiliate marketing or online courses. The more ways you can generate income, the more insulated you’ll be from sudden economic shifts.

2. Strengthen Your Emergency Fund

A robust emergency fund is a financial safety net that can help you weather economic instability. Ideally, you should have at least three to six months’ worth of living and business expenses saved. If you don’t have an emergency fund yet, start small by setting aside a percentage of your earnings each month in a high-yield savings account.

3. Cut Unnecessary Expenses

Review your business and personal budgets to identify areas where you can trim costs without sacrificing quality. This might mean renegotiating contracts, cutting subscriptions you no longer use, or switching to more affordable vendors. Every dollar saved is a dollar that can help keep your business afloat during challenging times.

4. Improve Your Credit and Access to Capital

Access to capital is crucial in a recession. Strengthening your business and personal credit can increase your chances of securing a loan or line of credit when needed. If possible, establish relationships with financial institutions now so that you have options available before an economic downturn hits. LGBTQ+-owned businesses may also explore funding opportunities from organizations that prioritize diverse entrepreneurs.

5. Strengthen Your Network

A strong professional network can be invaluable during tough economic times. Build relationships with other LGBTQ+ entrepreneurs, industry leaders, and potential collaborators. Attend networking events, join LGBTQ+ business associations, and seek mentorship. The more connections you have, the more opportunities you can leverage when facing financial uncertainty.

6. Stay Adaptable and Innovative

Recessions often force businesses to pivot. Stay informed about market trends and be willing to adapt your business model if necessary. If certain aspects of your business become less profitable, explore new opportunities that align with your skills and industry experience. The businesses that survive recessions are often those that can evolve quickly.

7. Invest in Skills and Knowledge

Continuous learning can help you stay competitive. Consider taking courses, attending workshops, or gaining certifications that can enhance your expertise and make your business more valuable to clients. Knowledge is an asset that can help you navigate uncertainty and seize new opportunities.

8. Support the LGBTQ+ Business Community

Recessions can disproportionately impact marginalized communities, making it even more critical to support and uplift LGBTQ+-owned businesses. Collaborate with other queer entrepreneurs, share resources, and promote businesses within your network. Collective resilience can help ensure that the LGBTQ+ business community remains strong, even during economic downturns.


Preparing for a recession isn’t just about survival—it’s about positioning yourself for long-term success. By diversifying your income, strengthening financial safety nets, and staying adaptable, LGBTQ+ entrepreneurs can weather economic challenges and emerge even stronger. Economic downturns are inevitable, but with the right strategies, our community can continue to thrive, innovate, and build lasting financial security.