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Recession-Proof Revenue: The Antifragile Advantage
CARTER REPORTS
Greetings - It’s David here.
Carter Reports is formatted as a One Must-Read newsletter. Each week I send you one story and explain why it's worth your time. My choices include key issues for growing companies; different points of view, and hidden gems. These are the stories I know will give you a competitive edge.
While everyone's talking about the economic storm clouds gathering for late 2025, I've been thinking about something different. What if the businesses that thrive during tough times aren't just lucky—what if they're built differently? Today I want to share what I've learned about creating revenue streams that actually get stronger when the economy gets weaker.
I appreciate your trust and readership. Best. David
One Must-Read Article
Recession-Proof Revenue: The Antifragile Advantage
Economic forecasters are sounding alarms about recession risks heading into late 2025. Higher tariffs, restrictive immigration policies, and inflation aftershocks are creating perfect storm conditions. But here’s what the headlines miss: recessions don’t impact all businesses equally. They reveal which ones were truly built to last.
While your competitors are battening down the hatches, smart leaders are asking a different question: “How do I build a business that gets stronger when the economy gets weaker?” The answer isn’t just survival—it’s antifragility.
The Antifragile Advantage
Antifragile is a concept introduced by Nassim Nicholas Taleb, author of The Black Swan and Antifragile, which describes systems that not only resist but actively benefit from stress, volatility, and disorder. Examples include the human muscular system, which grows stronger from weightlifting, or a business that adapts and thrives after a market disruption.
Antifragile businesses don’t just survive economic stress; they use it as fuel for growth. Think about companies that thrived during 2008: Airbnb launched during the recession because people needed extra income and cheaper travel options. Dollar stores expanded rapidly because consumers sought value.
The pattern? These businesses solved problems that economic stress made more urgent, not less. Your business can do the same—if you build the right revenue structure.
Counter-Cyclical Revenue
Most businesses chase the same customers with the same timing. Antifragile businesses identify opportunities that grow when spending contracts. Examples in action:
A marketing consultant pivots 40% of services to “efficiency optimization” and “cost reduction strategies”
A restaurant adds meal prep services for budget-conscious families
A fitness studio launches “home workout equipment rental” when gym memberships get cut
Your move: Identify your customers’ recession behaviors. What do they need more of when money gets tight? Build that offering now, before the pressure hits.
Diversified Revenue
Here is a typical fragile business formula: One major client, one revenue model, one market segment. When that client cuts spending by 30%, your business suffers.
The antifragile approach: No single customer represents more than 15% of revenue. Multiple product lines serve different economic sensitivity levels. Geographic or demographic diversification spreads risk.
Real-world example: Restaurants that launched take-out orders and outdoor dining, bricks-and-mortar stores that began online selling—were the ones that survived the 2020 crisis. The businesses that diversified their delivery methods and revenue streams before the crisis hit were positioned to pivot quickly when their primary channels were disrupted.
Your move: Map your revenue concentration. If you’re over-dependent on any single source, start diversifying immediately. Economic stress always finds your weakest link.
Recurring Revenue
One-time sales are economic roller coasters. Look at all the personal injury attorneys constantly advertising. Why? Because they almost never get recurring revenue from the same customer!
Recurring revenue is your shock absorber. But not all recurring revenue is recession-proof. Netflix subscriptions get cut. Luxury gym memberships get canceled. Essential recurring services get prioritized.
The recession-proof recurring revenue test:
Is it cheaper than the alternative?
Does it solve a problem that gets worse during economic stress?
Would customers feel pain within 30 days of canceling?
Examples that pass the test:
Cybersecurity monitoring
Accounting and bookkeeping
Equipment maintenance contracts
Essential software tools
Your move: Convert one-time customers to recurring relationships. Even if it means lower upfront revenue, the predictability and retention during downturns more than compensates.

Here’s My Take
Many business owners see recessions as external threats to endure. Antifragile entrepreneurs see them as competitive advantages to exploit.
While your competitors are cutting prices and reducing service, you’re solving the new problems that economic stress creates. While they’re losing customers they can’t afford to lose, you’re building relationships that strengthen under pressure.
The businesses that emerge stronger from the next recession aren’t the ones with the most cash reserves—they’re the ones with the most recession-resistant revenue structure.
Before you close this email, answer this question: If your three biggest revenue sources got cut by 50% tomorrow, would you have a plan to not just survive, but grow?
If the answer is no, you’re building a fragile business in an increasingly antifragile world. Start building your recession-proof revenue streams now. Not when the economic stress hits, but while you still have the resources and clear thinking to design them properly.
What revenue streams are you building for economic resilience? Hit reply and let me know—I read every response.
That’s A Wrap
Successful companies aren't necessarily the smartest or the most well-funded—they're the ones who've learned to work with uncertainty instead of against it. It's not about having all the answers—it's about staying nimble enough to find them as you go.
Reminder: I'd love to hear what you're dealing with. Hit reply and let me know if you have suggested topics for future newsletters
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All the best-
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© 2025 David Paul Carter. Photo Credit: Mark Sibson | iStock
Thanks to Claude Sonnet4 for helping me streamline and sharpen my ideas in this article.
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