By: Edwin Dearborn
This Is Your Business Survival Guide
To Help You Prosper During Economic Crises
During a recession, your primitive lizard brain reacts, commanding the erroneous knee-jerk reaction to hunker down and wait out the storm.
Do you know what people do when they panic? They end up saying dumb shit and overreacting. They sabotage what they’re trying to resolve.
Do you know what handles most panic? Being extremely prepared!
Question: Are you prepared for the mother of all recessions? This business survival guide can help, if you apply what I teach within it.
On the other side of the coin are those few entrepreneurial contrarians who view these dark times as golden opportunities for grabbing additional market share.
They prepare rather than panic. They respond rather than react.
Warren Buffett once said, “Be fearful when others are greedy, and greedy when others are fearful.”
Recessions are unlikely opportunities for massive growth. But only for the prepared ones who respond, not panic.
Once you change your mindset about recessions, refusing to be sucked into the upsetting news and panic of the media pundits, you can rise above with a written strategy and thus take effective actions to survive, and yes, even thrive.
Live to serve others with high-quality services and products, while also standing tall as a brand that communicates positivity, empathy, and hope during challenging times, and you can win while others panic.
“Some entrepreneurs think how can I make a lot of money? But the better way is to think how can I make people’s lives a lot better? If you get it right, the money will come.” – Sir Richard Branson
Take Away: Prepare and respond by writing out your business & marketing plan around, “How can I make many more people’s lives a lot better?” Do this before the economic storm peaks.
History Teaches Us
In the 1920s, Post Cereals was the leader in their market. But when the Great Depression hit, the company reduced its marketing considerably.
Meanwhile, its biggest rival, Kellogg’s, doubled their advertising expenditure and quickly saw its profits boom by 30%!
In fact, after overtaking the top position in the 1920s, Kellogg’s is still the category leader one century later.
Harvard graduate and Professor of Business & Marketing, Roland S. Vaile (1889-1970), tracked 200 companies through the recession of 1923.
Roland reported that companies who continued to advertise during the crisis were 20% ahead of what they were before the recession. On the other hand, the companies that had reduced their marketing were still in the recession and were 7% behind where they were in 1920.
Companies that continued to advertise during the 1923 recession ended up 20% ahead of where they were before the recession.
During the 1990-1991 recession, McDonald’s decided to reduce its marketing spending and promotion budget. Contrarily, Pizza Hut and Taco Bell took advantage of their reduced presence and focused their efforts to retain their own respective marketing activities.
As a result, both the companies experienced higher sales, with Pizza Hut seeing a 61% increase, and Taco Bell a 40% raise. McDonald’s saw its sales decline by 28%.
Take Away: Recessions are unlikely opportunities for massive growth.
7 Actions To Build Your Recession Proof Strategy
Surviving tough times, such as a recession, is not as complex as we may believe.
Survival concerns itself by repeating a few, core activities with laser focus and consistency.
Being brilliant or naturally talented is not required. These are obvious advantages if you possess them, but they are not required to survive.
It’s simply a question of, “Am I willing to execute the fundamentals with bull-headed determination, day in and day out?”
Grit and focus are underrated superpowers.
These seven actions listed (with a bonus added) will steer you out of economic stress if you execute them with consistency.
“Energy and persistence conquer all things.” – Benjamin Franklin
Taking the time to be intentional with these vital activities is crucial, with attention to your professional manner will only add to your success.
Take Away: Massive action, coupled with intelligent planning, wins!
One: Strengthen Relations With Clients, Partners & Your Team
A loyal customer base is one of your best assets during a recession.
Increase service, benefits, and value to them as your primary business activity. This has several benefits:
- You are more likely to retain them as long-term clients.
- You encourage more referrals from them because of better service.
I would deploy an omnipresence approach to my existing clients and partners to ensure that they knew I was in business and was continuing to offer superior value, service, and assistance. Such methods would include:
- Weekly emails with helpful tips, insights, FAQs, success stories, etc.
- Routine phone calls with interest in their well-being.
- Direct mail is sent once a month. Handwritten envelopes work best.
- Retargeting ads on Facebook, Instagram, and YouTube. (This is where a good CRM helps, covered in point 6 in this guide)
- Webinars and masterminds.
- Rapid, attentive service to their needs and questions.
Another important strategy to add more value as a brand is to continue to train, educate, and care for your own team members.
Investing in further training, better training, and personal care will increase the value and impact of the services that you offer. When your team members are valued by you, they pass on this positive culture to your clients.
By ensuring that the competence level of your team grows, you become an indispensable asset to them, as well as to your clients and partners.
Take Away: Brands who actively engage their clients, while delivering high-quality service from competent, well cared for teams, win!
Two: Increase Lead Flow With Prospecting
While advertising can be expensive and even cost-prohibitive during a recession, one can always engage in prospecting.
For every minute you are not servicing or selling someone, you should be prospecting. It is a proactive, effective means of filling up your appointment schedule and your sales funnel.
Here’s my own definition of prospecting:
“Prospecting is the proactive search for potential clients and referrals. It is purely outbound and can be initiated at will. Prospecting is the process of identifying for yourself who your ideal clients are, actively searching for them, and then creating a base of leads. The goal of prospecting is to further communicate with these leads, in person, and via technology, and to eventually convert them into paying clients.”
Prospecting can be done very inexpensively, but this vital activity does require significant time, energy, and persistence. Such actions include:
- Sending out dozens of daily invite requests to targeted audiences on LinkedIn. (Connect with me on LinkedIn)
- Call everyone you know and see how you can help them.
- Use your CRM to email and call your leads.
- Post frequently on social media with helpful and/or inspiring content. Check out Branded Shareables.
- Going to local events, business meetups, etc. Become an effective networker.
- Volunteering in your community is a great way to meet fellow professionals.
- Go door-to-door in business complexes, introducing yourself.
- Co-create content with leaders and online influencers.
- Join and participate in Masterminds.
- Be active in your local Chamber or business networking groups.
- Send cold emails. Check out Alex Berman on YouTube.
- Optimize your website for local search.
Take Away: The number of contacts = the number of contracts. Make prospecting your brand’s Superpower.
Three: Encourage & Empower
Reassuring messages that reinforce an emotional connection with your brand is vital during uncertain times. Showing compassion and empathy by conveying a sense of “We’re going to get through this together” is effective.
Your messaging should encourage and empower your audience, which will help to build a strong emotional bond.
If you’ve been around the marketing block, you know that a basic fundamental principle of marketing is to get people to know, like, and trust you. Do this well, and you’ll convert online visitors and prospective leads into clients
People believe they are buying from logic, but they are justifying their purchases, choices, and decisions from the deepest part of their hearts.
Mark Vincent Hansen, co-author of Chicken Soup For The Soul said it so clearly: “People don’t buy with their head but with their heart. The heart is closer to the wallet than the head”.
Take Away: Positivity and empathy win!
Four: Focus on What Drives Growth
Know your numbers.
More than ever you need to know your numbers, know what they mean, and how to move your numbers towards positive achievements.
I highly recommend that you read and apply the book, The 4 Disciplines of Execution.
Success is achieved when you focus your efforts on what is working. Know what drives your KPIs up and then double down on the winners. Know what doesn’t work and drop these activities to free up your time for things that do increase your numbers.
Recessions require us to become hyper-focused, economizing our actions just as much as economizing financially.
From bookkeeping, generating leads, and driving sales, to ensuring high-quality delivery, know and use your numbers.
It’s important you manage your business and finances with accurate, real-time data rather than panic, misemotions, or hunches.
Take Away: Brands who know, understand, and leverage data win!
Five: Create Video Content – Consistently & Inexpensively!
Creating great video content does not require a big budget. It is the most effective and engaging content to create and share with your clients and target audiences.
Studies show that a whopping 78% of us watch videos online every week and 55% watch videos online every day.
Your mobile device can create and post effective video content. Posting videos on TikTok, Instagram, YouTube, and Facebook Live are all FREE!
Here are my top video content ideas:
- “How to”
- Answers to frequently asked questions
- Case studies/success stories
- Reports on industry trends
- Interviews with business leaders and influencers
- Product demonstrations
- Before and after examples
- Talk about local events
- Share your “top 10” list
Video content, filled with value, keeps you top of mind and builds trust with existing clients and potential prospects. It opens up the door to new prospects and opportunities across the globe.
Videos are easy to send in emails, as well as post routinely on social media platforms. You can even text them to your leads and clients.
Take Away: Video content is a brand builder because it provides credibility and transparency.
Six: Use A CRM
I am often asked, “What’s the best CRM?”
My answer: “The one you use.”
CRM (Customer Relationship Management) refers to the technology systems companies can engage to manage their external interactions with customers at all points during the customer lifecycle, from discovery to education, purchase, and post-purchase.
Additionally, a CRM can send you automated reminders regarding ideal times to follow up with leads and prospects, when a customer needs service, as well as other critical touchpoints.
Most importantly, since all of this customer data is centralized, everyone within your company who deals with customers can access up-to-date snapshots of each customer’s interactions with your business.
There are many CRMs to choose from and many are quite affordable.
During a recession, you cannot afford to lose out on one opportunity. A CRM keeps you organized and efficient with your sales and marketing endeavors.
Take Away: The money is in the list and the fortune is the follow-up. Use the technology of a CRM as an effective sales and marketing tool.
Seven: Scale Affordably
While others are pulling back in a recession, you need to scale.
Only by demanding and pushing for growth can you survive a recession. But how do you scale affordably?
Virtual Assistants!
Outsourcing your marketing tasks to a virtual assistant (VA) isn’t as complicated as you think. Business owners who have tried hiring a virtual assistant will also tell you how the benefits of outsourcing marketing tasks match, even outweigh, the costs.
Your business can grow faster with the expertise of skilled professionals who can work flexibly at rates that cost less than a full-time salary.
VA’s can perform all types of functions, such as:
- Posting on social media
- Calling and scheduling leads from your CRM for your sales team
- Doing SEO on your website
- Design branded content
- Schedule you on podcasts
- Edit your videos
- Automate your social media posts
- Reach out to podcasters to get you booked on their show
- Build websites and landing pages
- Run paid ads on Google and social media
My good friend, Barry Coziahr, helps small businesses scale their marketing endeavors with VAs. Check Barry out at TeamBuilders.
Take Away: VAs are a force multiplier for your growth (they are quite affordable).
Bonus Action: Retain Your Own Chief Marketing Officer (CMO)
Few CEOs and business owners have time to spare.
Branding and marketing are valuable skill-sets that require many years to learn and master. Adding a CMO to your executive team is critical to the evolution and growth of your business.
What can a CMO accomplish for your business?
My simple answer, “Drive growth.”
Specifically, to drive that growth a CMO deploys two overarching strategies:
- Increase your word-of-mouth and referrals with proven strategies.
- Incorporate any form of media, content, and/or available opportunity that makes sense within the budget and goals of your brand. This can include branding, advertising, remarketing, strategic alliances, SEO, video marketing, social media, webinars, online lead generation, and inbound as well as outbound campaigns.
Take Away: Adding the capabilities, experience, and accountability of a Virtual CMO to your team can represent a new era of growth and financial freedom for your brand.
About Edwin Dearborn
Edwin has been featured in Entrepreneur, Social Media Today, The Orange County Register, and other national media outlets. Edwin was formally educated in marketing and public relations in Hollywood, CA in the 1990s and has since coached thousands of CEOs and business leaders in the United States and Europe. Edwin is the author of, Power Branding Secrets and Three Degrees of Separation: Learn How to Build Powerful Connections In Business.
