For every business that thrives under the pressure of a recession, there are hundreds that fail — but yours doesn’t have to be one of them. Periods of economic downturn provide challenging circumstances for the fledgling company, but could also give opportunities for innovation and strategic scaling. In fact, 2008’s recession put many of the household names we recognize today on the path to global domination — from Netflix to The Lego Company.

As a recession looms, digitization has been touted as the lifeline that will get businesses through. Cloud-based Software as a Service (SaaS) solutions allow companies to streamline operations, automate time-consuming processes and open new avenues for revenue growth. So, what could SaaS do for your business during a recession? Let’s unpack three of the top benefits.

1. Serves as a cost-saving agent

The SaaS industry is booming — expected to reach nearly $900 billion in value by 2029, according to Fortune Business Insights. Part of the reason that SaaS products have been so successful is that they can be a great cost-saving asset for businesses of all sizes. 

Because SaaS enables application use on a subscription basis, digital tools are no longer reserved just for the larger enterprises that can afford to host them on-premises. Nowadays, small and medium-sized businesses have access to toolsets tailored toward a range of business functions.

So what can SaaS improve? The potential is wide-reaching, as software purchasing platform Vertice explains, “cloud-powered software tools are capable of boosting productivity and streamlining vital business functions, revolutionizing every process from project collaboration to customer relationship management.” 

These tools save time, manpower, and money during difficult times for businesses — making them a high return on investment venture that can significantly reduce overheads during a recession.

2. Facilitates communication and collaboration

With remote working more common than ever before, it can be easy to slip into habits of poor communication and workflow fragmentation. To avoid this, your business needs systems in place to counter the effects of reduced face-to-face time. 

This is especially pertinent during a recession, as a slip in productivity could quickly translate into a downward spiral for your business, with less profit and a higher chance of redundancies. Cloud-powered tools are a lifeline for streamlined project management, allowing employees to collaborate virtually and stay in contact no matter how far apart they are.

And there’s every chance that if you’re not yet remote working, a recession could force your hand. Some commentators have called the physical office the “latest layoff victim” of the recession, with many CEOs likely to turn their back on brick-and-mortar workplaces once and for all to trim operational costs. As a result, SaaS tools could become even more essential, to help your business to navigate the troublesome roadblocks of remote working.

3. Helps you keep track of spending

With the right tools and the vision to implement a digital-first business, SaaS can help you to increase productivity and reduce costs. But will this be enough? 

In periods of recession, consumer demand for certain products and services tends to decrease as individuals have less disposable income. Depending on your industry, this could mean less incoming business — and so your newfound savings might leave your account as quickly as they arrive. To stay afloat, you’ll need to track your spending more rigorously than before and cut back where appropriate.

Thankfully, SaaS tools can support this too. Financial planning SaaS helps businesses to budget more effectively during economic downtown. Corporate Finance Institute explains that this is known as financial planning and analysis (FP&A) software. These tools help businesses to achieve more stringent budgeting by collecting, automating and organizing their financial data — as well as even providing AI-powered recommendations for trimming costs.

Ultimately, SaaS products are booming in popularity for a reason — and there are more in the market than ever before. But to get the most bang for your buck, you’ll need to research and implement those that are best suited for your company. By investing wisely in SaaS solutions, you can ensure that your business fortifies during a recession and comes out not only unscathed, but every bit stronger for it.