We’re currently hearing nearly every day about some company or other downsizing its workforce, cutting back on services or attempting to lower costs in some way or other. Everyone knows that belt tightening is the only way to go in a recession.

Or is it? Here are seven reasons why it can be advisable to expand, not contract, in a recession.

1. Because you’re the best at something – You ARE the best at something, aren’t you? Every company has a unique selling point, a reason why people use them and not another firm. Fact is, that companies who are second or third-best at what they do suffer in recessions. But when you know what you’re best at, you have more staying power in that area than anyone else. So locating and playing on your strengths is vital. There’s no point expanding in an area where you are outperformed – the extra clients will cost you dear and acquiring them may push you under.  But expanind where you’re strong is a great move.
2. Because there are probably areas of your business that appeal to people in a recession – There are many businesses that do well, of course, in recessionary times – pawn shops, discount retailers – but maybe you too have product lines or services that actually become more appealing to your customers at times like these. Having an audit of your current offerings and asking “how can we market this (product or service) in a recession?” may bring about surprising opportunities.
3. Because customers will remember you when things improve – Smart companies know that if they can stand the cost, marketing in a recession is money well spent. If you are spending money getting your message out there, even if customers are not in a position to buy (which let’s face it, many aren’t) they are getting your message – even more so if everyone else has stopped or reduced their marketing. And many products have a long lead-in from initial interest to purchase anyway, so to NOT spend in a recession could mean that when the good times return, you find yourself with what may on the surface seem to be inexplicably empty order books. The reason is that you didn’t hold firm. So if you can stand it, it’s always good to build your market share in these times and reap the rewards later.
4. Because your market may not even be in recession – Is your market actually IN recession at all? The fact is that for many markets, recession means a slowing of growth, not a reversal of it. Are you so busy listening to doom, gloom, the media and water-cooler talk that you haven’t realised that your sector is not dipping how you though it would/was? If so, slower expansion DEFINITELY makes more sense than no expansion or contraction.
5. Because nowadays, marketing is measurable – It’s an oft-quoted line that says “I know half of my marketing budget is wasted, I just don’t know which half”. For a hundred years, marketers have placed newspaper, magazine and (later) radio and TV ads, not knowing which were and weren’t working for them. Fact is though, nowadays that’s all bunkum. In the “new media”, everything is measurable. With pay-per-click advertising, search engine optimisation, online PR, affiliate marketing, email campaigns and social network advertising, you can track the source of every single customer and every single change to your advertising strategy. So of COURSE it is imperative to watch your spend in a recession – but to expand means marketing. Marketing is a utility, not a cost. So do it. Expand your business. Go and find the new customers. Just undertake it more wisely than ever.
6. Because it’s a chance to up your game – if you’re busy playing damage limitation, your company will almost certainly be suffering at a product or services level. Are you improving your offerings? Your message? Your selling points? You’re doing nothing of the sort, because you’re going backwards.  By deliberately putting the considerable effort in to expand, you will be sharpening your message, and obtaining a competitive edge. Your company will be more alert, more future focused, and ultimately more stable.
7. Because the competition will be thinking the same – It is vital to adopt a proactive tone in your marketing and in your business, since you can expect the competition to be thinking alike. Not losing more than the market drop overall becomes extremely important. Or, maybe your competitors have not got the same insight into recession marketing, and this costly mistake of theirs can open up a trail for you.

Overall then, the message as we see it is: Don’t stop spending, don’t stop expanding, and don’t stop improving – just do it more wisely than ever.