Recession? Awesome!

It’s all over the news – our country is either headed for or is now into an economic recession. What does this mean for business? Less corporate spending, clients becoming more wary of pricing, and fewer transactions being done?

Perhaps so, but we happen to believe that a recession can be good – even great – for a business that knows how to handle it.

While it’s true that it could be more difficult to source clients and land projects, there are also silver linings to look for. Here are a few things to think about as you prepare to position your company for slower times:

1.) Renewed Focus.

During times of economic success, it becomes very easy to set the company on cruise control, letting the clients simply fall into your lap. You didn’t have to have a sharp, clear corporate focus in order to succeed. As things slow down, you’ll have to go out and find your clients – and sharpen your message. Now is the time to do the business planning you’ve been putting off, because it will make it easier to target new clients, and set your business up for success in the long runs.

2.) Less Competition.

During the first phase of an economic slowdown, your competition will also be scrambling for clients. You may find the marketplace getting more crowded, not less. But the longer a recession lasts, the more likely it is your competitors will not be able to make it, and one by one doors will begin to close. Not you – you’re doing your planning and research, sharpening your message, and exploiting new marketing opportunities (see #3). The barriers to entry for new competition will also be higher. It will be easier than ever to push ahead of your competitors and take command of the marketplace.

3.) New Marketing Opportunities.

You’re not the only one feeling the pain of a recession – your clients are as well. The more you can feel their pain, the more likely you are to win their business. Take advantage of a budget-sensitive market to position your product or service to answer their business problems. Can your company increase their bottom line? Don’t be shy, promote it! Focus on their needs, not yours. The more you help your clients through a recession, the stronger you’ll emerge.

4.) Dedicated Workforce.

Your employees need economic stability as well, and no doubt they’ll be looking to you for a solid job. During a recession, companies are laying off, not hiring, so your employees will be less likely to find more attractive positions outside your firm. Take advantage of this by taking care of your employees now more than ever. The resulting workforce loyalty can help your profitability tremendously. Clients can also detect a motivated, energetic workforce, and will be more likely to give business to a company that seems to be thriving, not dying.