When we last spoke, everything was going great. Well, welcome to the new world. As of today, March 21, 2020, they're predicting a significant contraction in economic activity, on the order of 15%-20% globally. And it wouldn't surprise us if it ended up being worse. Who knows, at this point? It's all just a best guess using models that weren't built for this.
And it doesn't matter anyway. As a business owner, you should have only one priority right now after making sure you, your family and your community are safe: the survival of your business.
Prior recessions, economic shocks, wars and depressions tell us exactly what you need to do right now: Ramp up your Sales and Marketing so you can grow your market share!
That is, assuming you have any resources to work with, everything you do today needs to be focused on building mind share, acquiring new customers, taking business away from your competitors, and then servicing the hell out of your new customers so that, when the economy comes back you're in a position to dominate your market and reap the rewards.
Economic theory tells us that profitability is directly related to market share. The higher your market share, the more profitable your business will be. Use this model to see the numbers for your business.
At the same time, Psychology 101 tells us that most people (including most business owners) will overreact to the threat. They will act out of fear - cutting back on Marketing to save money, for example. Or they will act out of sentimentality - paying workers who have nothing to do (due to reduced demand) because they're understandably attached.
While there are some defensive moves you might need to make (and we can talk about them), and protecting your employees can be part of the plan if it's do-able, the one thing you MUST do is double, or triple, or quadruple, if necessary, your marketing efforts.
The reason is that this is the time to "buy market share" - just like this is the time to buy stocks. Assuming you have cash, buying market share has never been cheaper - just like buying stocks has never been cheaper. Invest in growth NOW! The cost of acquiring market share will eventually go up; and if you don't do it now, you will miss the boat.
At LeadGen.com, we've been through this before: In 1974, 1980, 1982, 1990, 2001 and 2008. We've also studied past economic contractions such as the Great Depression, 1937, 1957 and others. And while this one will be different, we know that what enables businesses to survive is an overinvestment in marketing and sales. And we know that those businesses that failed invariably sat on their hands.
Now the bad news: The situation that every business faces is different, and so is the solution. So if we're going to help you, we need to look carefully at your situation, and develop a unique solution just for you. And that's going to cost money. We can't do it for free.
Now the worse news: In some cases, there is no solution. That is, after we look at it, and potentially after we develop and implement a plan, it may turn out that there was simply no way to survive. But that's the nature of capitalism: creative destruction - where businesses, and entire industries, go through a life cycle. And some of them are going to die, especially in a recession.
But we can help. We have the tools, the experience, and the expertise. All you have to do is call us (at 856-638-0399) or set up a time to talk through Calendly (in an informed discussion or an uninformed discussion) if you're interested.
As a business owner, right now you may still have a choice. Do you want to go down fighting? Or do you want to be a victim, not of the recession, but of your competitor who's reading this right now and who decides that the market share that he wants to take is yours?
And, of course, that's the worst news: Someone is going to survive. And if you don't fight back, it's not going to be you.