Why Some Businesses Are Recession-Proof & Others Destined to Fail
When times are uncertain, anything is possible.
Unfortunately, when uncertainty like a recession appears on the horizon, most entrepreneurs panic and assume the worst will happen.
Even though anything, either good or bad, could happen, they assume that hard economic times will bring tough times for their business.
Most CEOs forget that uncertain economic conditions do not automatically equal business slowdowns. The 2008 financial crisis birthed many of the most dominant businesses in world history!
To help you make the absolute most out of challenging economic times like a recession, I’m sharing the difference between businesses that do and don’t survive recessions.
More importantly, I’m sharing how to make your businesses recession-proof to make the most of the economic times and grow more than ever!
Uncertainty is not bad until you make it such... Choose to use the uncertainty of a recession to your advantage.
Economic Downturns Create More Successful CEOs Than Any Other Time
The hard truth about recessionary periods is that nobody knows when and if one will ever happen.
Every financial guru has an opinion about when the next recession will hit, but the truth is that nobody can perfectly predict the future.
Yes, while you can look to measures like GDP, layoffs, or even pandemic-related numbers to make predictions, they’re ultimately just predictions.
That said, while nobody can predict the future perfectly, some entrepreneurs prepare themselves for when the next recession hits.
They prepare themselves because they know that, historically, recessions create more successful businesses than any other period.
Successful CEOs Find Solutions While the Other 99% Panic
During the Great Recession, Airbnb's founders started the company because they knew that a.) hotels were too expensive for most people and b.) homeowners were looking for additional ways to earn income.
While other businesses were panicking, they realized that there were suddenly more opportunities to help people than before!
Economic downturns create more successful businesses and CEOs than any other time because economic turndowns present new opportunities to help other businesses or consumers.
As you know, the more people or businesses you help, the more value you create and the greater your business becomes.
If you think you need to start a new business to help more people, you only need to (very slightly) pivot your existing business!
While everyone else is panicking, the CEOs who triumph use the problems recessions create as opportunities to start a new business or grow their existing one.
You Already Know That the Media Is Playing With Your Emotions
Isn't it amazing how so many people know that most news the media puts out is over-inflated hype, yet they allow the publicity to get the best of them?
For example, they read hyped-up headlines like, ‘The real estate storm is coming!’ or ‘The Fed going crazy with interest rates!’, or ‘Worst stock market tank in history coming, watch your cash flow!’ and feel their stomach begin to curl.
The funniest part is that most of the people who read these headlines and panic understand little to nothing about financial markets at all!
You know the media is trying to get a rise out of you, so why do you let them do that?
What good is knowing that the media thrives on virility if you allow everything they say to get to you?
So, Why Are You Tripping?
You already knew recessions created more successful businesses and CEOs than during any other economic period.
You also already knew that hype is the media's form of currency.
Therefore, why are you tripping so hard?
Why would you go into panic mode instead of preparing to help more people mode?
Given that you already know there is immense opportunity in recessions and the media tries to create a rise, the only way a recession can overcome you is if you allow it to!
Will You Let Emotions Dictate Your Outcomes?
CEOs who triumph during challenging economic times are masters of their emotions.
While everyone else is panicking and jumping out of the game, they are jumping into the game.
But Brian, what if my company goes under and I have to shut things down?
It’s possible your business will experience hard times during a recession. However, it’s also possible that the next time you fly in an airplane it crashes.
Instead of letting possibilities dictate your emotions, think in terms of probabilities!
Yes, you may experience challenges, but how probable is it that those challenges overcome you if you prepare yourself?
It is possible that you study thoroughly for a test and still fail, but how probable is it?
The moment you start letting possibilities instead of probabilities dictate your emotions is the moment you panic.
Don't set yourself up to panic by thinking about what is possible. Instead, think about what is probable and prepare yourself accordingly.
The #1 Difference Between Businesses That Do and Do Not Survive
The primary difference between businesses that thrive during recessions versus those that fail is perception.
On one hand, businesses that thrive have CEOs who perceive recessions as potential opportunities.
They see them as opportunities because people panic during recessions, and with more panicking, the more people or businesses that need solutions to alleviate the panicking.
On the other hand, businesses that fail during recessions are the ones that see recessions as the boogie man out to get them.
Instead of seeing more people or businesses who need help, they see more people or businesses closing themselves off.
Perception is the great divider between businesses that do and do not survive!
Preparing yourself to survive a recession starts with altering your perception.
Perception Leads to Action, Which Leads to Outcome
Perception is powerful because perception dictates action, and actions ultimately determine the outcome.
If you perceive recessions, and even depressions, as threatening, then you take fear-based actions.
However, you shouldn't run a business based on fear!
For example, if you perceive recessions as threatening, you're likely to cut back on sales staffing or trash your CRM to trim costs.
As a result, you have fewer resources to help your customers during the uncertain times.
Sadly, you successfully dug yourself into a hole before the recession hit!
On the flip side, if you perceive recessions as potential opportunities, you take action based on that perception.
For example, you see the recession is creating panic amongst your customer base, so you step up to alleviate that panic by selling them your solution. Your solution helps them feel more certain in the uncertain times.
If I told you I didn't fly because I'm afraid of airplane crashes, you would think I’m ridiculous because the odds of crashing are close to zero. You would tell me not to live my life based on fear.
Similarly, you can't run your business based on the fear that a recession will ruin you.
The Best Time to Grow Your Business Is During a Recession
The best time to grow your business is during a recession!
During economic stability, companies have less urgency to buy products or services because they don't believe they have many problems or much to worry about.
During a recession, business owners are on the edge of their seats.
Suddenly, they panic over problems the economy could create and are willing to listen to anybody who could potentially help alleviate their panic. They need somebody to help re-instill a sense of stability.
That said, the best time to grow your business is during a recession because potential customers have more urgency to solve their potential problems than ever! Urgency creates an easy point of entry for you to get your foot in the door.
If you step up and be that person who helps alleviate a customer’s panic by re-instilling a sense of stability, then you have a chance to make a new sale and grow your business.
How to Grow Your Business During a Recession
Growing your business is as simple as making more sales in less time.
Making more sales in less time is easier during or right before a recession than at any other time period because potential customers have a higher sense of urgency than ever!
Selling during a recession is about using your product or service as a means to help them overcome their panic so that they feel stable in an unstable economy.
It doesn’t matter if you're a large or small business owner or what type of business you run, recession-proofing your business comes down to putting sales strategy at the center of your business model.
Entrepreneurs who don’t just survive the recession but thrive are the ones who spend 90% of their time on sales and 10% on everything else.
Recession-Proof Businesses Are Sales-Driven Businesses
To be recession-proof, you don’t need to start a new business in a supposedly recession-proof industry, like grocery stores, baby products, or even consumer staples.
Also, you don’t need to go back to school to become a plumber and make home repairs to survive a recession.
Instead, all you need to do is shift between 90 to 99% of your focus to acquiring new customers!
Focusing more on sales than anything else increases your cash flow.
With more cash on hand, you’re not just growing, but also protecting your business from the potential impacts of economic instability.
Furthermore, pivot your focus to making more sales in less time.
Thankfully and contrary to popular belief, making more sales in less time is easier during a recessionary period than at any other time.
Your potential customer base feels uncertain of the times, is panicking, and has a high level of urgency regarding the unstable economic times.
As a result, potential customers will talk to anybody who can re-instil a sense of stability!
More specifically, they’ll talk to anyone who shows them how to make more money during economic downtimes!
Show Customers That You Can Help Them Make More Money!
Stability = more money in pocket.
The key to successful selling during a recessionary period is showing potential customers that you will help them make more money!
It doesn’t matter if you are a social media marketing freelancer or run an information technology company, your job is to show potential customers that whatever you’re selling will bring them more money than any other product or service they could buy!
Showing prospects that you’ll make them more money alleviates that panic they have over the unstable economic conditions.
Suddenly, that sense of urgency will turn into a sense of relief.
Bottom line: It doesn’t matter what you’re selling! What matters is that you frame your sales pitch in a way that shows customers you will bring them financial stability during economically unstable times.
Are You Ready to Pitch Like You’re In the Top 1%?
Unless you can make sales pitches like you’re in the 1% of top CEOs, then growing and even surviving during a recession will not be easy.
When I say making pitches like the 1%, I’m asking can you frame your sales pitches in a way that shows potential customers you will bring them more money and a greater sense of stability?
Can you make them feel less panicked in the unstable economic times?
Can you make them feel like you’ll bring them more money and opportunity than almost any other option on the market?
Recessionary periods are not the time to wait, they’re the time to take action. If you’re not ready to take action today, then the time to learn how to take action and make winning sales pitches is RIGHT NOW.
Deal Flow Accelerator cuts all the fluff out of teaching you how to sell so that you can begin making winning sales pitches like you’re in the 1% almost immediately.
Whatever you do, don’t wait until a recession hits to start preparing for it. Instead, get ahead of the curve by preparing yourself NOW.
While your competition is thinking about how to get out of the game, you’ve got to be ready to jump head-first into the game!
You know that there’s gold dust lingering during challenging economic times, so don’t let the dust go to waste!
Get your sales pitches down, use urgency to your advantage, and make recession your new partner in business growth.
Final Thoughts on Businesses That Do and Don’t Survive Recessions
Recession-proof businesses are businesses that don’t just survive a recession but thrive through it.
The way to thrive during a recession is by changing your perception of them as opportunities to help more people and then focusing on sales.
Thankfully, selling during a recession isn’t as hard as most people think it is. Rather, it’s easy because prospects have such a high sense of urgency to find stability in an uncertain economy.
Instead of succumbing to the panic of a recession, use it as an opportunity to grow more than ever!
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