Times are hard right now, and no one knows that better than small business owners. Between the Iranian oil crisis, the political uncertainty around the world, and the economy’s slow recovery from covid, people are understandably anxious about spending money.
It might sound counterintuitive when I say that now is a good time to spend more on getting your business out there through networking and marketing, but having weathered various recessions and crises with my own businesses over the last two decades, I can honestly say it’s the best way to make sure you’re maintaining your slice of the pie.
What do I mean? Well, in a recession or an economic downturn, people are spending less on the whole. If you think of your industry as a pie, this means that the pie is smaller, but the pie is still there. You need to make sure your slice of pie (that’s your segment of industry profits) stays the same size, while others get smaller or disappear altogether to adjust for the decreased demand.
Upping your marketing budget is the best way to ensure that, when money is scarce, people still spend theirs with you. Here’s why:
Brand recognition is key
You’ve probably heard marketing people waffling on about brand recognition a lot – it’s what happens when you see those two golden arches at the side of the motorway and start thinking about Big Macs. If you run a smaller, more local business, you might think that brand recognition isn’t important, but it really is, because you’re competing with those bigger national and international corporations for your slice of the pie too.
This doesn’t mean you need to throw tonnes of money into expensive branding right off the bat, but it does mean you need to make sure that your potential customers remember who you are and what you do, and that you’re at the forefront of their minds when they’re looking for someone who offers your products or services. If you’re an accountant, everyone you work with probably knows of 3 or 4 accountants, minimum. You want to be the first person they think of when they’re panicking about their tax return.
One way to make sure you’re at the top of your potential clients’ lists is to get to know them personally, and joining a networking group is one of the best ways to make authentic personal connections with other business owners. Having a network of people who can recommend your work is a brilliant way to ensure people know who you are and what you do, and research has shown that referrals have a higher conversion rate than the majority of other marking methods.
What could networking do for you?
Building trust
People might be reluctant to spend right now, but that doesn’t mean they’ve stopped needing or wanting your goods and services. However, when people are trying to save, they’re less likely than ever to throw money away on people and businesses they don’t trust.
If you’re looking to build trust with a community of business owners, networking is an amazing way to get yourself out there and get to know an audience of potential clients. It’s easier to place your trust (and your money) in a business when you know the people behind it and have a genuine relationship with them. When you network with people, you’re constantly demonstrating your business values and expertise, which makes them more likely to choose you.
Visit a ScreenPop group in your area
Investing in the future
Once we’ve weathered the storm, people will begin to bounce back and spend again, and as the pie grows, your business should grow with it. You can think about an economic slump as an opportunity to take hold while the market is less saturated, rather than being the business that everyone has forgotten about when they’re looking to up their budgets. Marketing often takes time to convert, but investing now is the best way to make sales in the future.
Often, members of my networking groups tell me they’ve made a sale to another member after months of attending meetings with them – it really does take time to build an authentic connection, but that doesn’t mean you should give up altogether.
If you’re looking for help to get through this challenging time in business, get in touch – I’d love to see what ScreenPop could do for you.
