Staying the Course
Securing Future Growth During Economic Downswing
As a small business owner, you often find yourself grappling with concerns such as staffing challenges, rising expenses, and, most importantly, the need to boost your revenue. These worries can become particularly pronounced when consumer spending declines compared to the previous year, and there are talks of a looming recession in the news. We want to reassure you that your concerns are entirely valid, and we acknowledge that you may need to exercise fiscal restraint. We are here to give you some guidance on avoiding a knee jerk reaction by halting your spend on marketing. In fact, by staying committed to your marketing efforts during these uncertain times, you may not only gain market share but also position your business for significant growth in the years ahead.
Let’s start with a hypothetical client who owns a business called Abe’s Awnings. Our business owner, Abe, experienced exciting growth of 5% last year, and he currently holds a market share of 10% in his local town. He’s nearing the end of the quarter and is starting to get nervous that his business isn’t achieving its revenue goals, and he fears he may not be getting a decent return on his marketing investments. The truth is that his competition is also experiencing a similar decline in interest in custom canopies and feeling the same pressure to cut the budget and try to recover some of the spending. Abe is worried but knows that economic downturns can provide ample opportunities. Therefore, he decides to stay the course with his planned marketing budget. As a result of local competition pulling back from advertising, bid costs start to drop, and Abe’s Awnings is getting more exposure than before for the same ad spend. When the local economy starts to stabilize, customers and competitors re-enter the market. Abe’s Awnings’ spending has been consistent, and it is the first name his audience thinks of as they enter the buyer’s journey. Abe’s faith in his marketing paid off, and his business has seen a significant increase in recognition and sales in the following year.
At Childress Agency, we deeply empathize with our clients and have stood by their side through the ups and downs of uncertain times. It’s worth noting that in a post-pandemic world, marketing budgets are on the rise, with Gartner reporting that “average marketing spending has increased from 6.4% to 9.5% of company revenue across almost all industries.” We’ve faced economic booms and downturns head-on and want to empower both our potential and existing clients with the belief that marketing is a valuable investment. We have faith in your business, just as we hope you will have faith in us.