How does a recession affect your service-based online business? This question can be tough to answer. If you get anxiety over the word “recession,” you’re not alone. While recessions have a varying economic impact, the concern does not mean you should go into panic mode and upheave your entire business.
The fact of the matter is not every recession is going to be of the same caliber as 2008 was. Recessions are threatening, but it’s more important to be prepared and plan for the financial impacts instead of worrying about how bad it could be. So how can you plan, adapt, and overcome a recession? The simplest way is to take advantage of downward trending prices and a slower economy to grow your business and offerings.
One of the most critical parts of owning a business during a recession is to ensure you’re doing what you can to keep it thriving. Luckily, there are a few ways you can take advantage of this economic downturn and drive new traffic to your business to ensure it stays relevant and profitable. Hiring a social media manager and engagement strategist can keep your social media thriving, your content fresh, and your business succeeding during a recession.
Is a Recession Coming?
There are a lot of varying opinions from economists, financial experts, and other professionals in the field. Some analysts predict an imminent economic downturn, while others aren’t so sure a recession will happen this year. Some economic factors like the yield curve inversion earlier this year, rising inflation, a falling consumer confidence index, and worldwide political events are major influences on when professionals think a recession is likely.
Most economists agree that the upcoming recession will take a “pasta bowl” shape, meaning consumers should expect the recession to last longer, but it won’t be as economically deep cutting. You could consider this good news. Don’t worry too much about saving up or dipping into your emergency account. However, anticipate average prices to be higher in the future. Dating a recession is difficult because of all the moving parts, but evidence of one is enough to get you prepared and planning.
How You Can Use a Recession to Grow Your Business
Business owners can protect themselves during expected recessions through insurance, cost-saving measures, downsizing their workforce, et cetera. This approach is not one-size-fits-all, and some firms actually thrive during times of economic recession. Several businesses use recessions as an opportunity to improve their business. Improvement could look like diversifying services offered, taking up a new skill, or learning more about how to make your business more efficient.
Hiring a social media manager and engagement strategist is another great way to improve your business during a recession. For some business owners, hiring help can sound scary or counterintuitive. Cutting costs isn’t always the answer to economic downturns.
As a business owner, you need to take the perspective that your business can still grow during a recession. Taking up opportunities to grow and expand your business when you can afford it is something every business owner would do, regardless of recession or not.
Hiring someone to take on your social media tasks can help your business stay relevant in the online sphere while increasing your productivity. If you do everything yourself, it likely won’t be the highest quality. You can’t be good at everything, after all! Delegating tasks to a specialist makes it possible for you to service more clients and deliver your best work.
Most online-based businesses depend on social media to survive and spread awareness about their brand. Consistently engaging and releasing new content can be a challenge for a lot of business owners. A strategist navigates social media and creates a plan aligned with your business goals. While you worry about improving your brand, a strategist will take the guesswork out of social media for you.
Benefits of Hiring During a Recession
1. Keep the Market Moving Forward
One of the most important things a consumer can do during a recession is to stimulate the economy by spending money. Businesses need to keep operating to ensure people are spending money and generating income. Your business plays a role in this, too. Frequently posting on social media is a way for clients to find you, so your business can continue operating.
People need a job to generate income. Working with a strategist gives them another job and helps the market move. Hiring someone as a strategist will keep them in business so they can continue serving others and keep the market moving forward. Additionally, several social media strategists work remotely and usually work off employment contracts, so employing a remote strategist could be a less expensive option for your business.
2. Focus on the Bigger Picture
The big picture during a recession is keeping your business going. You can take advantage of economic downturns by investing in improvements for your business (and possibly yourself). Part of enhancing your business is getting outside help. This person can tell you what other aspects of your business needs refinement and can offer their knowledge in patching those areas up.
A strategist will loan their expertise to improve your social media. They can advertise your business, manage online relationships, and amplify your online brand awareness. A social media strategist will ensure your business stays relevant during a recession when it might be harder to find clients.
3. Freezing Marketing Will Kill Your Business
If you have to do anything to keep your business running, offer sales to appeal to more clients, but do not freeze your marketing! No marketing equals no new clients, which equals no revenue. Shutting parts of your business down during a recession is a huge mistake. You still have clients to serve and people in the market searching for your services.
If you’re struggling to book clients, a social media strategist is well-equipped to find the people searching for your services and advertising your business. Leaving the marketing to them will result in more success than if you shut down marketing altogether.
4. Social Media Will Still be Used During a Recession
People will continue to use social media, even for personal use. You can still reach potential customers through social media, unlike other channels. A strategist can effectively launch campaigns that appeal to your target customer and potentially generate new sales.
If nothing else, a strategist can keep your business relevant and top-of-mind through engagement strategies and consistent content. They will build consumer contacts and useful B2B relationships during this time. If business revenue isn’t possible, business relevance is.
Hiring a social media strategist during a recession is beneficial for your business’s long-term performance. Your business will continue to be relevant (and may even become more credible) and it gives you the ability to delegate tasks and focus on the critical parts of your business. While economic uncertainty may affect your online service-based business, you’ll have the opportunity to improve your business and further your business prospects.
Are you curious to know what a social media strategist can do for your business? Contact me today for a discovery call to find out what we can improve on your social media.
About Wildly Creative Studio
We work with 6-7 figure coaches just like you to…Find, nurture and sell your $10k programs in the DMs. Look, we get it. You’re a busy online business owner that is looking to expand their business but needs some extra support when it comes to your sales funnel. My team and I are your behind the scenes magicians that help you bring a lead from cold to sold all through a social media sales funnel. Book a discovery call with me to get started.