Recession Proof Your Business

Growth Driven

Recession Proof Your Business
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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 sh*t 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.
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.