Supergoop survived the 2008 recession. Today its founder and CEO share how to build a recession-proof business.

• Supergoop's values helped it stay focused throughout its history, including the 2008 recession.
• Amid fears of an imminent downturn, Supergoop's founder and CEO look at how others can prepare.

"We're teachers and students" is one of the 10 values painted on the walls of Supergoop's New York City office. The list serves as a reminder of the company's greater goals, Holly Thaggard, who founded the company in 2007, said.

Remembering its core values has helped the company through its 15-year history, which includes the 2008 recession, Thaggard and Supergoop CEO Amanda Baldwin told Insider. Those same beliefs are guiding their team as it prepares for and reacts to today's volatile economy.

Supergoop, which sells skincare products with built-in sunscreen, has grown its direct-to-consumer sales by 40 times in the past five years, the brand told Insider. While it declined to share revenue figures, Inc. magazine reported it booked $40 million in revenue in 2018.

Thaggard and Baldwin shared their advice for founders on building a recession-proof business.

Determine your values early on and don't waver

When Thaggard started expanding her Supergoop team, they came together to determine the list of 10 core values, Thaggard said. The principles were created during successful times to be leaned on during difficulties, she added.

"That's been a really good exercise to go through as a brand founder," she said, adding that other business owners could learn from the practice. "Articulate and put them on paper, put them on the wall, make sure everybody holds hands, and all the leaders in the company come up with them together," she said.

Having clarity on the brand's greater vision and mission informs how to move forward, no matter the specific challenge at hand, Thaggard and Baldwin agreed. For example, the value of being both teachers and students grounds Supergoop in its knowledge of sunscreen, which is where the business started, while adapting to changing consumer and marketing behaviors along the way.

"When times are tough and things are going sideways in the world, being able to go back to those 10 things that we all believe as a group" is helpful, Thaggard said.

Be flexible and grow through challenges

While experts warn of a recession in 2023, Baldwin feels the company is prepared to face any challenges that may lie ahead.

"Through the last couple of years leading this organization, the one thing that we've gotten used to is that the only constant is change," Baldwin said. "When you build that into the muscle memory of an organization, that's really important."

But it hasn't been easy to constantly pivot, she added. With each new trend, consumer behavior, or marketing tool like TikTok or Instagram, the team asks questions like, "Does that make sense for us?" and, "Do we think there's real scalability about it?"

Additionally, they make sure to stay consistent on what the brand is trying to accomplish, while experimenting on how they accomplish it, Baldwin said. That flexibility is especially important when preparing for difficult business or financial situations, she added.

Don't move too fast when building the business

Looking at business and life from a broader perspective allows leaders to see a balanced version of both the good and the bad, Baldwin said.

That vision helped her and Thaggard avoid overshooting in times of success.

"Sometimes people overdo it, and that's what leads to the pullback," Baldwin said. "That does not mean we're not trying to accomplish a lot of things, but it prepares you to be able to weather the storm because you're not too far out over your skis."

As eternal optimists, the leaders and their team hope for the best but prepare for the worst, Baldwin and Thaggard agreed. Leaders should not overlook the importance of having transparent conversations and focusing on the things they can control.