With all of the current mainstream media discussion of housing market bubbles, lower housing and stock market values, and possible recession in the economy, it's always a good idea to be prepared. Should there be an economic downturn, the prudent course of action is to see an opportunity where everyone else sees a crisis. One of those expansion opportunities is through increased market share.
While other business owners and managers enter into a contraction and retrenchment mode during a recession, the contrarian business person thinks in terms of expansion. When other businesses cut back on marketing and advertising, they are surrendering potential market share. There is no better opportunity to pick up new customers and increase your company's profile in the marketplace. When other organizations are cutting back, it's time to claim their abandoned market share.
The first place to consider expanding during an economic downturn is your marketing efforts. If your marketing plan is comprehensive, it should already have a scenario in place for marketing when the economy weakens. The plan should include spending more money on marketing, but there is room for expansion of low and no cost marketing as well. In fact, if money is tight for your own business, as a result of lower economic activity, the expansion of your marketing program may be predicated upon free techniques. You may have little choice in the matter, and free marketing may be the only available solution.
The danger of having lower revenues, for the moment, may be the urge to cut back could be overwhelming. Creditors require payment regardless of the economy and demands for shrinking funds may cloud your thinking. It is no wonder that most business people cut back when the economy slows down. It's important to keep your eye on the prize, even when others are urging you to back away from the goal. Because money is tight, you also have a number of advantages. Demands for funding of non-revenue producing projects can be placed on hold for the duration. That money can then be redirected to the marketing and advertising campaigns.
Paid advertising can often be purchased at a much lower price during a recession. Media are feeling the pinch as well. Very often, they will cut you a great deal on space. Opportunities will also open up for barter transactions. Someone short of cash will want to make a trade. You can conserve precious cash flow by sharing in the barter arrangement. Very often, you can get more premium placement advertising during an economic downturn than at any other time.
Free marketing efforts should be the hallmark of your expanded marketing program. A business blog is the obvious first step. If the the blog is already established, its readership is already partially established. The blog can be expanded easily to include more frequent posting to add even more readers and develop more conversations. The blog will inform current and potential customers and clients that not only are you staying in business, but you are also planning to serve them even better in the future.
Free publicity through press releases, special event marketing, and community involvement are powerful market expansion techniques. Be sure to network with potential clients at industry and non-industry events. If you are forced to remove your booth from a trade show, attend anyway. Your presence there can still add to your client base, through active lead generation. Make yourself available for media interviews and establish yourself as an expert in your field. After all, the competition in your industry has been reduced temporarily.
While I am not predicting an economic downturn, the prudent business owner should always be ready for such an event. When a recession strikes, an entrepreneur must be prepared to seize the opportunity for expanded market share.
When other businesses are pulling back, it's time for your company to move in and fill the void.
