Seven Tips To Grow Your Business During a Recession
Many economists have stated that a recession will hit in 2023, while others say economic indicators show it’s already here.
Set the worrying aside and develop your plan NOW for success in the coming months.
A brief look at past recessions shows that companies tend to reduce marketing budgets and launch fewer new products during a recession. Additionally, consumers have proven to evaluate spending and purchase habits, cutting back on spending. We’ve included a few tips to help combat these challenges and gain a competitive edge during an economic downturn.
1. Be Strategic
While your competition is slashing their marketing budget, stand out by maintaining or increasing your marketing spending. Historically, studies show that 75% of recessions last only one year, while an additional 30% last two years. Take this short-term opportunity to gain market share and increase sales. Also, consider partnering with a marketing and research firm that has experience working through prior recessions. Discuss your strategy with them and take steps to make a plan together.
2. Stand Out
With fewer product launches and less marketing by the competition, your company has an opportunity to stand out and grow! Now might be the right time to act if you have been thinking about culling or adjusting your product portfolios. If you have done the research, this could be the time to launch a new product. It will undoubtedly have a better chance of standing out at retail.
3. Understand Purchase Behaviors
Consumer purchase behaviors will change in a recession. Now is the time to do the groundwork and take advantage of the change by doing research that can guide you through the recession. Conducting and understanding consumer research is key to understanding shoppers’ behaviors and buying habits.
4. Avoid Big Branding Changes
Avoid making changes to your branding during the recession – keep your core messaging concise.
5. Maintain Customer Base
Strive to maintain your current customer base. The lack of competitive marketing will work to help gain new customers.
6. Stay Consistent
Don’t cut your key messaging opportunities. If you send out an email blast weekly, do not cut back to monthly or quarterly deliveries.
7. Keep Advertising
If you advertised to consumers or trade before the recession – don’t stop now. Brands that continue to advertise do better (during and after the recession) than brands that do not.
Doing these seven things will:
Demonstrate the stability of your company to the consumer and your trade partners
Ensure your company stands out from the competition
Help gain market share and sales
Place your company in a prime position post-recession
Recessions don’t last forever. Research and case studies have shown that companies that maintain marketing during a downturn become stronger afterward. Companies that reduce or stop marketing have a more challenging time during the economic recovery. Prepare now to gain market share during the recession. You will strengthen your brand and company and will experience long-term sales growth.
Looking to set up your company for success during a recession? Call or email us TODAY to discuss how you can get started!