Reassessing Recessions

We’ve danced around the “R” word for about a year, but after two consecutive quarters of declining GDP, one has to ask, “Are we in a Recession?”

It depends on what source you cite and what news media you follow, but economists generally agree things are not looking good. If we are not in a recession now, we will be soon. So, what should we do? Here’s another “R” word for you; RISE.

At the now ripe, old age of 55, I have learned a few things. Recessions come around every 10 years or so, which means we’re overdue. But a recession isn’t the end of the world. It’s actually a great opportunity. Hear me out. If you RISE to the occasion.

1. A Recession is a great time to START a business. Statistics show that there’s an increase in start-ups during economic slowdowns. In fact, some of the biggest and best brands out there were born in a recession, such as HP, Hyatt, Uber, Slack, Venmo, and Microsoft. Start-ups will RISE up.

Part of the reason is there’s nowhere to go but up.

1. A recession is a great time to GROW a business. Many companies see the oncoming recession and will cut costs before it hits. Layoffs, budget freezes, expense reduction, etc. A large number of companies will then do the worst thing possible – deeply cut or eliminate marketing expenses. That’s like running a car on empty because you’re approaching a traffic jam. History is full of stories of brands that seized the day and upped their marketing spend and permanently relegated their competition to number two. Kellogg’s outspent C.W. Post during The Great Depression, and the rest was history. Coca-Cola has consistently outspent and out maneuvered Pepsi in the Cola Wars for over 100 years – through 10 recessions – and remained the number one Cola brand in the world.

I started Madison+Main before The Great Recession, and I followed my own advice (and so have most of our clients – not all).  #BoldBrandsWin