The economy is shifting rapidly. As a small business owner, you’ve got two choices — pick up your ball and head to the sidelines OR pick up the ball and run it straight down the field, over and over again.
Which one will you choose?
When an economic downturn hits, most people respond with fear. They make decisions from a place of extreme panic. They pull their money out of the market, let half their staff go, cut back on advertising, and withdraw from the game.
It doesn’t have to be like that for your small business.
The downturn is standing on our front porch, suitcases in hand, ready to stay for a while.
So how do you capitalize on its arrival and propel the growth of your business?
Instead of viewing this period with dread, I’d like to encourage entrepreneurs and small business owners to see this as a time of great opportunity.
Think about it this way: the greatest transfers in wealth took place during a recession.
I get excited when these big changes and shifts happen because history has taught us that the biggest breakthroughs in any industry came about as a result of the need for innovation.
With that in mind, here’s what you need to think about as an entrepreneur in order to come out of this recession with a thriving business:
- You need to decide if you’re going to play offense or defense. We can’t stop the economic downturn from happening — but we do know that the opportunities and money will NOT disappear and that not everyone will lose.
By having a positive mindset that’s directed towards finding the opportunities in this climate, you can set yourself up to thrive.
Most people’s immediate reaction in an economic downturn is to pull back: cut spending, let staff go, and stop driving the market forward. Instead, I want you to elevate your thinking and realize that when everyone else is leaning back, you have the chance to be unstoppable — just by leaning forward.
There will be more opportunity, less competition, and it will be less expensive to capitalize on opportunities.
- Make decisions strategically, not emotionally. Remember: everyone else is panicking and making decisions as if the downturn will last forever — which we know is not true.
History tells us that a downturn is ALWAYS followed by an upturn.
Most people are too afraid to take action with all of the uncertainties that come with a downturn, so by taking action now you can become a peerless leader in your industry.
- Have an executable plan to ensure you pivot correctly for profits. Your pivot will look different depending on the space you’re in, so make sure your plan works for YOU.
Look at your investment strategy and utilize your critical thinking skills to figure out how you can position yourself for ultimate success in the upcoming downturn. The competition is going to start thinning out, so take advantage of this by scooping up advertising at a low cost or hiring that top tier talent that is now suddenly available.
Reinvest in coaching and strategic advisory to ensure you have an outside look at what you’re doing. Spend more on teaching, training, and coaching your team to align their roles with your new strategy, so you have a sustainable company that will be able to lead through the downturn.
In the last economic downturn, I led the most profitable team in my company, all without downsizing — because I pivoted.
- Recession-proof your business by catering to people who will spend more to capitalize on the recession and people who are so insulated that the recession will hardly affect them at all.
Put yourself in a category where you’re not the lowest price point — you don’t want to be selling to people who can barely afford their basic needs, no less your service or offer. Unless you make toilet paper. Then – keep it affordable, please! If you’re the lowest-priced offering at the start of the recession, you leave yourself at risk. When your competitors inevitably drop their prices if yours are already low, it could put you right out of business.
I won’t lie to you and say this is going to be an easy season for your business, but it can be a profitable one. I am dedicated to giving you the tools you need to catapult the growth of your business online — so if you’re looking for more support and guidance during the upcoming economic downturn, I’d love to help.
My team and I are hosting our Live Launch workshop on March 23rd. While we will be teaching the Live Launch method, we will be including important training on how to pivot your business for profits during a recession. Even if launching isn’t your thing, you are going to want to sign up!
You can register for the workshop here: https://kellyroachcoaching.lpages.co/march-2020-live-launch-registration/