Thinking of starting a business? Or investing more into your existing small business? Tough call. In the current economic climate, starting or investing in a small business can be a scary prospect. The rising cost of inputs are substantial - think food, fuel, etc..
Some businesses are more recession proof than others. Any professional service can remain relatively immune to economic downturn because these businesses tend to have low overhead costs and shorter value chains (resulting in more profits). Another type of business that remains succesful would be trades based operations like plumbers, electrician and contractors. People will continue to need specialized work to keep their homes operational despite economic decline.
So what's the point? Well, when costs rise and recessionary factors are in play - entrepreneurs and businesses alike begin cost cutting measures as the first method of protection. The first thing to go - immediate 'expense' items like marketing. Big mistake.
With economic uncertainty comes opportunity. Marketing should not be viewed as an expense but rather a sound investment to bolster sales in the future. Focus on low cost, highly effective marketing vehicles (think online, social media, word of mouth, PR) to create opportunities. While competition cuts back or eliminates its marketing spend - think of ways to increase yours. It will help you win in the long run.