6 Ways to Grow your Business During a Recession

Last Updated:
August 3, 2022
Author:
Mike

6 Ways to Grow your Business During a Recession

In tough economic times, consumers will continue to rely on you to provide them with the goods and services they need. Although circumstances may be difficult, there are opportunities to grow your business during a recession. Continue reading to hear about how you can continue to prosper, even during a recession.

1. Enhance your online presence

With consumers spending countless hours online, it’s important to make sure your company is visible on different online platforms and channels. As you likely know, having a substantial online presence will attract qualified leads. Paid advertising, social media marketing, email marketing, etc. create endless opportunities for companies to connect with both current and new customers online. This is valuable for both eCommerce and service-based businesses. Research has shown that a significant amount of people use google search to find local service businesses and to begin the process down the sales funnel.

2. Build your brand recognition and reputation

Producing an excellent product or service will only take your business so far. To retain your customer base, you have to build your brand into a unit that inspires consumer confidence and brings them back for more. To build brand recognition, stick to a consistent marketing campaign that builds trust. Consumers tend to choose businesses that they know and have confidence in. A consistent marketing theme will continue to reinforce the values of your product or organization that you want consumers to remember. With intense competition throughout many industries, your brand’s reputation is what will make the difference.

3. Cut the bottom 15% of your worst-performing customer base

I know what you’re thinking, this seems counterintuitive. However, this is what major organizations do to ensure stability and growth. In every business, there are customers who are slow to pay, difficult to satisfy, and who require a disproportionate amount of your staff’s attention in relation to the revenue they generate. By cutting these customers, you give yourself access to additional resources and the capabilities of your existing labor force. Through this, you won’t need to add new employees to your payroll.

4. Increase your advertising and marketing budgets

During a recession, the majority of businesses will reduce their marketing budgets. Successful businesses stay afloat during recessions by using advertising and marketing to deliver more business. Utilizing an aggressive marketing strategy during a recession keeps your brand on the mind of consumers when other businesses are choosing to scale back their marketing efforts. Market research has shown that businesses that increase their marketing budgets are able to bounce back more quickly from the effects of a recession.

5. Improve operating processes

Successful corporations find a way to serve more customers with either the same or even fewer resources than they had previously allocated before the recession. By changing and enhancing your operating processes, you will have the resources needed to serve the customers you have gained from previous steps such as enhancing your online presence, increasing your marketing budget, and building brand recognition.

6. Stay consistent

In the midst of a recession, there is no such thing as “normal”. Things can change dramatically on a day-to-day or week-to-week basis. This makes communication with your team very valuable. It would help if you kept them updated on where the company stands, future plans, your strategy, etc. This is also a great opportunity to upskill your team. Emphasize to your team that brand consistency is crucial and that they play a valuable role in keeping the business running smoothly.

Final Thoughts

While it isn’t ideal, rather than looking at it negatively, remember there is an opportunity to grow your business during a recession. Recessions aren’t new, and they will continue to happen. It’s best to be knowledgeable and have a strategy in place so you can adapt when difficult circumstances arise.

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