Why Marketing Should Be a Top Priority for Small Businesses During a Recession

As a small business owner, you're probably feeling the financial squeeze of a recession right now. It's totally understandable to worry about your business's future, given all the economic uncertainty.

But here's the thing: effective marketing can make all the difference when it comes to surviving a recession. Rather than cutting your marketing budget, it's time to shift your focus to investing in a strategy that yields results. In this episode, I'll provide three compelling reasons why prioritizing marketing during tough economic times is crucial.

So, if you're a small business owner looking to survive and thrive during a recession, don't miss this episode! Let's work together to get your business through this recession!

Specifically, this episode highlights the following themes:

• How marketing can help small businesses thrive during a recession
• Three reasons why marketing is crucial in a recession
• Three ways to recession-proof your small business

Other Mentioned Links & Resources

Download the Three Ways To Recession-Proof Your Small Business Guide
https://www.treefrogmarketing.com/recessionproofyourbusiness
 
Learn more about Treefrog services:
https://www.treefrogmarketing.com

Learn how to write your Marketing Guiding Statements:
https://www.treefrogmarketing.com/marketingguidingstatements

Enjoy 35% off one year of HoneyBook
https://www.treefrogmarketing.com/honeybook-coupon-code

Join the Priority Pursuit Podcast Facebook Community: https://www.facebook.com/groups/179106264013426

Follow Treefrog on Instagram
https://www.instagram.com/treefroggers

Follow or DM Victoria on Instagram:
https://www.instagram.com/victorialrayburn

Transcript

Victoria Rayburn  0:00  
Running a small business during a recession can be challenging. It's important to remember that it's temporary and that businesses that continue to market themselves during a recession are better positioned when the economy recovers and are more likely to be successful after a recession. Either you're listening to the priority pursuit podcast, a podcast dedicated to helping small business owners to find, maintain, and pursue both their personal and business priorities so that they can build lives and businesses they love. I'm your host Victoria Rayburn. And today we're discussing something that all small business owners and leaders need to be thinking about and preparing for the upcoming recession and how to get ready for it so that your small business can both thrive and survive the next couple years of economic turmoil. Now, most economists agree that the United States will face a recession in 2023. That said, even if we aren't officially in recession, yet, as a marketing agency for small businesses, and as small business owners ourselves, Kelly and I already know that small businesses are already feeling and fearing the country's economic situation. Over the next several months or possibly yours, you and your team are likely going to need to find ways to reduce costs. As you look at your expenses. However, we want to caution you from making a common mistake small businesses tend to make during recessions, drastically cutting their marketing budgets. Now, to clarify, this podcast episode is not intended to be self serving. Yes, we at prefer marketing, or a marketing agency for small businesses. But we aren't trying to scare you. We are simply providing guidance based on data. Because we want your small business to thrive. We believe you work too hard to have anything less than a successful small business, even in the midst of a recession. So with this in mind, and this episode of priority pursuit, we want to break down at three reasons why marketing should be a top priority for your small business during a recession. Okay, so first of all, why are small businesses affected by recessions more than big businesses. Unfortunately, recessions do tend to affect small businesses more than big businesses. Yes, a decrease a decrease in consumer spending affects nearly all businesses. However, small businesses tend to be more vulnerable to economic downturns in large businesses, because most small businesses have less of a financial cushion, and fewer resources to weather a recession. On top of this, it can be a struggle for small businesses to access financing, or credit to fund their operations during difficult times. Furthermore, some small businesses may face increased competition from big businesses during reception, as larger companies with deeper pockets often lower their prices or increase their marketing spending, which can make it harder for small businesses to compete. Now, according to a study by the National Bureau of Economic Research, small businesses were hit harder than large businesses during the Great Recession, which was the United States's last recession from 2008 2009. The study found that small businesses experienced greater employment losses, and that between 2007 and 2010 27% of small businesses were forced forced to close their doors. Another study by the Kauffman Foundation found that from 2007 to 2010, small businesses with fewer than 50 employees accounted for nearly two thirds of job losses in the private sector. The study also found the small businesses were slower to recover from the recession than larger businesses. After the Great Recession, the US Census Bureau reported that 1.8 million American small businesses closed during or as a result of the Great Recession. While I don't tell you this to be all gloom and doom, the fact of the matter is that a recession is likely coming. And if you aren't ready, there is a good chance your small business isn't going to make it. So you need to take the time to prepare your small business for a recession. Now, we highly recommend talking to your financial advisor and accountant as we go into recession, as they'll be able to help you with the financial aspects of running a small business. However, like I said, we do want to discuss the marketing side of your business, specifically three reasons why marketing needs to be one of your top priorities during reception. So first of all Reason one, effective marketing is essential to your small businesses survival. When people ask us how to build a thriving small business, we always tell them that they need a solid product or service that meets their ideal customers needs a great customer experience and then an effective marketing strategy. Marketing is always an essential piece of having a successful small business. However, during a recession, effective marketing is critical to the survival of a small business. during a recession. Many businesses reduce their marketing budgets and efforts hoping to save money. However, when businesses stop marketing Get they will lose visibility, which results in lost business. During periods of economic downturn, consumers do less shopping and spend less money. As a result, if they don't know your business exists, and if they aren't familiar with the value you can give them they'll go elsewhere or they won't purchase from you. However, according to a study by McGraw Hill research, businesses that continue to invest in marketing during a recession experience higher sales growth compared to those that cut their marketing budgets. This study found that businesses that maintained or increased their marketing spending during the recession had a 256% higher chance of gaining marketing share. Now, just to clarify, I am not telling you to blindly throw your hard earned money at random marketing tactics. Instead, Kelly and I want to encourage you to invest in an effective marketing strategy that delivers results because data shows that small businesses that invest in marketing during a recession are better off than those who don't. Over the course of recession, you will likely have to make cuts. However, rather than drastically cutting your marketing budget, reallocate your budget toward a strategy that actually works. Basically, if you want your small business to survive this recession, so it can thrive later. Put your marketing dollars toward a strategy that drives results. 

Victoria Rayburn  6:25  
The Priority Pursuit podcast is brought to you by tree frog marketing a marketing agency for small businesses that takes the guesswork out of marketing. To learn more about our services, which include messaging and strategy development, website development, SEO management, content marketing, Google and social media advertising, social media management, sales, funnel development, consulting and more, visit tree frog marketing.com. Again, visit treefrog marketing.com. To learn more about our services and to schedule a free consultation. What would you do with an extra 45 minutes every workday that would save you 16 hours a month or roughly eight days a year and over the course of your career? We're talking about over one year of your life saved all that time back? Well, many independent business owners spend far more than 45 minutes a day on administrative tasks. And with honey book, you can get that time back and then some honey book lets you easily manage projects, contracts, invoices, scheduling, and client communication, saving you time and allowing you to better serve your clients. For a discount on your first year of honey book, visit honey book.com And subscribe with a code priority pursue 45 minutes a day adds up quickly use it to focus on what matters most.

Victoria Rayburn  7:50  
Now moving on to Reason number two, marketing will help your small business stand out. Again during a recession, many small businesses significantly cut back on their marketing efforts. However, those who continue to market their business as well and either maintain or increase their marketing spending create even more opportunities for their businesses, basically, because many if not most small businesses spend less time on Marketing during a recession. If you continue to market your business, you will have less competition, giving your small business opportunity to stand out. In fact, according to the American Marketing Association, companies that increase their marketing spending during the Great Recession experienced a two and a half times higher increase in sales compared to those that reduce the marketing budgets. Therefore, continuing to prioritize effective marketing increasing your marketing budget or even starting to move your business strategically for the first time will put you in a much better position many of your competitors to both survive and even thrive during a recession. And then Reason number three marketing during a recession sets you up for future success. Well, running a small business during a recession can be challenging. It's important to remember that it's temporary and that businesses that continue to market themselves during a recession are better positioned when the economy recovers and are more likely to be successful after a recession. In fact, a study by McGraw Hill research analyzed 600 companies during the recession of 1980 to 95 and found that companies that maintained or increased their advertising spending during the recession experienced an average growth of 275% in sales over the next five years. By continuing to build brand awareness and customer loyalty during a recession, you'll be in a much better position to capitalize on the recovery of the economy. When it eventually comes in guys it will come now, failing to prioritize marketing during a recession is a mistake your small business might not recover from so pretty much in conclusion, dry ethically, cutting your marketing budget during a recession may seem like a good way to save money. But this mistake will likely cost you more in the long run, and even force you to close your doors. By strategically and effectively marketing your business through tough times. You can stand out from the competition, build customer loyalty, set your business up for years of success and build a thriving small business. Now, you might be listening and thinking that's great, but I have no idea how to market my business or okay, but I don't want to waste my marketing dollars where it How should I be spending this money. And friend, we would love to share this information with you. If you're ready to set your business up for success even during times of economic turmoil, download our three ways to recession proof your small business guide. This guide walks you through three things you and your team if you have one can do to make sure your small business survives, and even thrives during this recession. And because we want your small business to succeed now and always, this guide even includes the exact four step marketing strategy we use to help our agency clients see growth of up to 880%. If you are ready to recession proof your business and make our proven marketing strategy your own. Visit treefrog marketing.com/recession proof your business again to download our three ways to recession proof your business guide and to learn a four step marketing strategy that will help your small business grow. Visit tree frog marketing.com/recession proof your business. Please know that Kelly the tree farm team and I are always rooting for your small business. But we are especially rooting for you now, because we know firsthand how much your session can affect small businesses. Thank you for tuning in to another episode of priority pursuit. For access to all links and resources mentioned in this episode. Check out the notes or go to priority pursuit.com to ask questions, share your wins and connect with other priority driven small business owners. Join the priority pursuit podcast community on Facebook. Or don't be afraid shoot us a DM on Instagram. You can find us at tree Froggers tree frog Kelly and Victoria l Rayburn. If you enjoy this episode, please take a moment to subscribe and leave a review. This will help other small business owners willing to be present in their personal lives, confident in their business choices and proud of the legacy they're building find priority pursuit. Thank you for tuning in. And I hope you'll join us next week for even more marketing boundary and priority driven tactics you can use to build a life and small business that you love.