Recession-Proof Your Small Business with These 5 Investments
Recession-Proof Your Small Business: 5 Investments To Make When Times Are Scary
There’s a whole lot of uncertainty out there right now, and many businesses – of all sizes – are struggling to stay afloat. In times like these, it's natural to feel anxious and reflexively pause your spending.
I get it. Even as an experienced entrepreneur in the process of starting a second business, this Austin Studio Space & Community, (and, if I’m being honest, spending out my ASS to do it), I’ve found myself experiencing moments of financial anxiety and fear.
What if the money dries up? What if the leads stop coming in? What if the price of eggs goes up even higher?
But here’s what I’ve learned: Putting off your brand needs and investments now can put you at risk of being behind when the upswing comes.
In this article, we'll explore the top investments to make when times are scary. Whether you're a solopreneur or a small business owner, these tips will help you weather the storm and come out on top. Let's dive in.
Investing In Your Business During Tough Economic Times Isn’t Just A Good Idea – It’s Necessary. Here’s Why:
Here’s the truth: a whole lot of us are carrying around a lot of shit from our childhoods, and sometimes that includes childhood-ingrained issues with money.
Spending money to make money feels weird and wrong – especially if you were taught to save and be careful with your money.
But in a weird Catch-22 way, sometimes NOT spending can actually make your pockets hurt worse than spending. If you’re putting off your brand needs now, you’re putting your brand at risk for when the upswing happens.
Because when it does, you may find yourself left behind.
Investing in your business is necessary in times like these.
The secret lies in knowing where to invest your money – especially as things are slowing down.
Life in the lull means it's the time to build a buzz.
Even if your ideal client can't book your services now, they're still thinking of who they might want to spend their money with later. By investing in things that will help your business stay on their radar, you ensure you emerge stronger than ever when we come out the other side.
Investment #1: Your Skills
One area to invest in is your skills. Investing in your skills as a business owner can help you make better decisions and navigate tough economic times.
By improving your skills, you may also identify new opportunities that can help you grow your business. You may also find that you build a network of contacts and mentors who can offer guidance and support. This can be particularly invaluable during tough times or difficult decisions.
4 Ways To Invest In Your Skills
attend industry webinars or in-person workshops
enroll in online courses that help hone your skills
read books or articles for your niche
hire a business coach to guide your decision-making
join an entrepreneurial community, such as Alight Collaborative
Investment #2: Efficiency
We’ve all heard the saying, “time is money” but few of us act like this is true. At the beginning of my business, I nickel and dimed everything.
I know now that that was hurting me more than it was helping me. If I had been willing to pay for some subscription services sooner, my life would have been greatly improved and I'd probably be even further along than I am right now.
I would have had a lot more time to navigate new opportunities and learn the ins and outs of my business.
Investing in Efficiency Is Often Done In One Of These Two Ways:
1. Technology
Efficiency-improving tech can include automation for repetitive tasks or software that streamlines your processes. For example, you can use a bookkeeping system to manage your finances or project management software to track your workflow.
2. Talent
Another way to improve efficiency is by outsourcing non-core functions. That might mean hiring a virtual assistant to handle administrative tasks or outsourcing your marketing to a freelancer. By outsourcing non-core functions, you’re better able to focus on the parts of your business that you’re great at and make the most of your time.
Investment #3: Customer Experience
Attracting and retaining customers is crucial during tough economic times. Investing in your customer service is the best way to do it.
By focusing on the customer experience, you can ensure customer loyalty, and it doesn’t even have to be a giant change. Providing better customer support can be as easy as crafting a more professional Out Of Office reply to emails or as intensive as investing in chatbots to provide 24/7 support. It could be improving your products or providing a more streamlined experience.
In the end, better customer support means greater customer loyalty. And it’s customer loyalty that will ensure your revenue streams keep flowing – or even increase – when times are tough.
Investment #4: Your Brand’s Online Presence
Investing in your online presence typically means reaching a wider audience and driving more sales, but it can also mean simply stay top-of-mind with your current customers.
4 Ways To Invest In Your Brand’s Online Presence
1. Brand Identity
By creating a unique brand identity, you can differentiate yourself from the competition and attract more customers to your business.
Pro option: invest in a branding agency
DIY option: leverage online tools such as Canva.
2. Website
By investing in your website design, you can create more trust with your target audience, improve your ability to show up in Google results, and increase your conversion rates with ideal clients and customers. And, in my experience, hiring a reputable web designer is likely to get you a return on your investment that is well worth the initial price tag.
Pro option: hire a professional website designer
DIY option: design your website via website builders such as Wix or Squarespace
3. Social Media
Keeping your customers engaged and informed about your products and services will ensure you stay top of mind. Find out which channels are most relevant to your audience and then begin regularly posting there.
Pro option: invest in social media advertising
DIY option: commit to posting regularly on social media
4. Email Marketing
Email is far from dead. Due to inconsistent algorithms, it frequently outperforms social media marketing. And it only makes sense. Sending out regular (not spammy) email newsletters keeps your customers engaged and informed about your products and services.
Pro option: invest in a copywriter to craft your emails for you
DIY option: write your own emails, but use a program like Flodesk to make them professional and attractive
Investment #5: Your Brand Image
Finally, during a recession, it's more important than ever to have a strong brand image.
By investing in your brand, you can come across as more professional, differentiate yourself from the competition, and build trust with your target audience. Additionally, a strong brand can help you command higher prices for your products and services.
Several of my new and recent Austin Brand Photography clients have found themselves struggling with leads/bookings during this time, so they're investing in brand photography to help them recover. This is the right move for many people -- but as a brand photographer, I have to remind you: you have to put your brand photos to work in your marketing.
You can’t just sit on them and expect the money to come in. But when you put them to work, you’ll reap the results.
Everything We’re Trying To Say…
Making strategic investments in your business during tough economic times can help you emerge stronger on the other side of the downturn.
To get started, prioritize the areas that will have the biggest impact on your business (your skills, your time, the experience your customers receive, and your branding) and focus on those first. For example, if you're struggling to attract customers, it may be more important to invest in branding than in your skills.
Next, create a budget for each investment and allocate your resources accordingly. That might mean setting aside a certain amount of money each month for training programs. Or it might mean allocating a portion of your budget to outsourced talent. Track your results and adjust your investments as needed.
By taking action now, you can recession-proof your business and thrive in any economic climate.