Entrepreneurs and business leaders are typically an optimistic bunch, but even so, the last few years have likely tested even the most idealistic among them. In 2022, as funding dried up and stock prices tumbled in response to the economic downturn, companies across the tech sector reportedly cut more than 150,000 jobs. With this economic uncertainty continuing into the new year—and the threat of a potential recession—leaders will be forced to deal with the impact on both their bottom line and employee morale well into 2023.

Fast Company asked a number of founders and CEOs to share how they’re steering through this moment, and what advice they have for other leaders:

ARIANNA HUFFINGTON, FOUNDER AND CEO OF THRIVE GLOBAL

“The pandemic made it clear that employee well-being isn’t a soft, nice-to-have perk, but an essential strategy for success. Most companies responded to the challenges being faced by their employees by expanding well-being initiatives. But now, in a tough economic climate, there’s a risk of leaders rolling back the progress we’ve made on well-being and mental health. So my advice to leaders is to remember the direct connection between employee well-being and key metrics of business success—recruitment, retention, engagement and productivity—and reaffirm their commitment to employee well-being even in the midst of uncertainty.”

AARON LEVIE, COFOUNDER AND CEO OF BOX

“You’ve got to do your best to control your destiny [and] create enough room to be able to adapt and respond to these environments in an agile way. These are definitely times that organizations need to double down in the places that are working, serving their customers better [and] driving more innovation in spaces where investments can pay off in the near term. It’s an environment where companies are still going to be focused on innovation and transformation but in a highly focused and targeted way.”

NAOMI ALLEN, COFOUNDER AND CEO OF BRIGHTLINE

“The instinct for leaders facing economic uncertainty is often to hunker down with their board and a few key executives to make sure strategic plans and operations are buttoned up. But I think recessions and hardship can be times to foster increased transparency and accountability with teams. This past quarter, we leaned on more transparent and explicit conversations about our must-do financial goals, targets, and challenges across the company.”

LAUREN MAKLER, COFOUNDER AND CEO OF COFERTILITY

“Just because you’ve raised money doesn’t mean you should spend it right away. I’m lucky enough to have some successful CEOs as angel investors—such as Trina Spear from FIGS and Sarah Harden from Hello Sunshine—who let me in on that early on. Thanks to them, the mantra of “sweat every dollar” has now been deeply ingrained in me and [is] something my team and I keep top of mind. Every time we spend, I think about the impact of the cost and decide whether or not we can do without.”

MARIEL REED, COFOUNDER AND CEO OF COPROCURE

“A friend once shared, ‘The role of a leader is to reduce the anxiety in the organization.’ I’ve been thinking about this a lot, because now, especially, it feels like everyone is panicking. Your team and your customers are looking to you for guidance, and need you to set the tone. You can communicate urgency without passing along a panic mindset. Take some extra time to respond in a way that is calm, direct, and empathetic.”

MAX MAYBLUM, FOUNDER AND CEO OF GIVERS

“Keep perspective. Oftentimes when things get difficult people shrink their thoughts and actions. When the future is uncertain, my recommendation is to set yourself up to thrive by clarifying your priorities and controllables. Having a north star heading into dynamic environments enables leaders to be steady in their intentions, flexible in their execution, and undeterred by external changes.”

LAURA MODI, COFOUNDER AND CEO OF BOBBIE

“Remember that your customers are also bracing for a recession. Don’t forget to put yourself in their shoes. It’s very easy to focus on cost-cutting internally when what really needs to happen is adjusting your business model or product mix. At Bobbie we are asking ourselves: ‘What can we do to help parents during this tough economic time?’”

KELSEY MELLARD, FOUNDER AND CEO OF SITKA

“As a leader, it’s hard to confront challenging situations like economic uncertainty with your team, but I’ve learned that increasing transparency is one of the most valuable things you can do. Being honest and open with your team proactively squashes any fears, rumors, or misunderstandings that might be circulating and builds trust. I make a point to show up on Zoom, ask about our employees’ life outside of work, and tell them about my own. At the end of the day we’re all human and want to be seen as a whole person, not just an employee.”

IMMAD AKHUND, COFOUNDER AND CEO OF MERCURY

“Business leaders and entrepreneurs can often be optimistic; you have to be when trying to start something new. But when it comes to running your company, the key is to hope for the best but prepare for the worst. Preparing for the worst for 2023 means: Assume fundraising will be hard or impossible, especially if you are unprofitable or growing slowly, [and] that the recession will have a series of unintended consequences hurting both your customer acquisition costs and your net revenue retention.

If you start with that mindset you need to then maximize your chances of succeeding. How can you get profitable and not rely on investors? How can you grow faster with a smaller team? There are a difficult set of tradeoffs ahead, but great business leaders will rise to the challenge and come out with a stronger company.”

ARI BLOOM, COFOUNDER AND CEO OF A-FRAME BRANDS

“Recession is a pretty generic term that we like to use to signify an economic slowdown. But to me, what it really means is that the market is changing. Each industry and geography has the potential to change in its own unique ways. For some it will be pricing pressures; for others, new shopping patterns and behaviors. Some will see increased demand. When things are changing, the best advice I have for business leaders is to listen, and try to stay ahead of the changes the best you can.”

SARAHJANE SACCHETTI, CEO OF CLEO

“Being a leader these days is a dynamic and oftentimes overwhelming responsibility. Leaders have been called in to respond to an unrelenting set of externalities from the pandemic’s massive impact on how we work and live, to our evolving and disruptive social and political reality, to today’s economic downturn and state. What’s become certain is we’re in a continued state of uncertainty. With this mix of factors, my first piece of advice is to recognize what you can and can’t do as a leader of teams today, and to start with an honest and focused assessment of what is and isn’t in your control before diving into solving the challenges your team and company face. The truth is, we often don’t know the answers to the larger questions around us and our businesses.”

ADRIANNE NICKERSON, COFOUNDER AND CEO OF OULA

“My advice is to continue to invest in opportunities to bring your teams together. Whether that is team lunches, offsites or holiday parties, it is so critical to find moments of joy and connection in the face of uncertainty. The companies that are going to perform the best through the recession are those where employees are engaged and invested in each other’s collective success.”

SARA MAUSKOPF, COFOUNDER AND CEO OF WINNIE

“During a recession, most leaders will take the necessary steps to reduce expenses. That’s a given. However, it’s also important to continue to invest in the business for the long term. Markets are cyclical and eventually recessions end. Make sure you’re setting your business up to not just survive but to come out of the recession in a much stronger position.”

ELLEN DASILVA, COFOUNDER AND CEO OF SUMMER HEALTH

“​​Trust your instincts and don’t let the noise affect your bold ambition. Do be cognizant of headwinds that will face your business, and ensure that you have enough capital to remain solvent through the tough times—but don’t be discouraged by the macro climate. I am constantly reminded that the best companies can survive and thrive during a down market because fewer competitors are funded, and the cream rises to the top. Call me an optimist, but I’ve never felt more enthusiastic about running a business.”