Five Essential Strategies for Growing During a Recession
When it comes to how to grow a business in a recession, it’s all about strategy.
Here are five key moves that can help you not just survive but thrive during an economic downturn:
Cash Flow is King
This is rule number one: your business will only last long with solid cash flow. You’ve got to have a clear plan for the next 12 to 18 months, no matter what happens. It’s not about hoping things will get better—it’s about planning for multiple scenarios.
Businesses fail because they run out of cash, not because the market is tough. So, take a hard look at your cash flow and ensure you have enough to keep things running smoothly.
Focus on Core Business Areas
Now’s the time to cut out the fluff. Every business has those areas that aren’t contributing to profits—ditch them. You’ve got to double down on what makes money.
What’s the core part of your business driving profit? That’s where you need to focus your energy. If you’re serious about increasing market share, this is how you start. It’s not about trying to do everything; it’s about getting laser-focused on what works and making sure your efforts go towards that.
Improve Conversion Rates
Most businesses spend all their time chasing new leads, but let’s be honest—how many of those leads are you converting? It’s usually not as many as you’d like. So, instead of spending more time and money on generating new leads, work on converting the ones you already have. By improving your conversion rate, you’ll see a more significant impact on your bottom line, and that’s key when you’re navigating an economic downturn. This is one of the smartest growth strategies in business because you’re maximizing what’s already in front of you.
Assess Key Roles in the Business
Your team is critical, especially in tough times. When the market shifts, you’ve got to be ready to shift your team with it. That means taking a good look at your current roles and figuring out if the people you’ve got are suited for the business’s current needs. Don’t be afraid to make changes—sometimes, that’s what it takes to stay competitive. It’s about ensuring you have the right skills and resources to take advantage of the opportunities.
Invest in Marketing and Capture Market Share
This one’s huge. Every time there’s a recession, businesses make a big mistake and slash their marketing budget. When everyone else pulls back, that’s your moment to step up. How to market in a downturn isn’t about spending less; it’s about being smarter with your investment. By keeping your business visible and investing in marketing, you can grab that increasing market share while your competitors fade into the background. Don’t wait for the economy to pick up to start marketing again—get ahead of the curve now and set yourself up for a stronger position when the market rebounds.
The Power of a Confident Mindset
Growing your business in a recession isn’t just about strategy—it’s about mindset. You can have all the right growth strategies in business, but if you’re stuck in a negative, reactive mindset, you’ll miss out. As the saying goes, “What will be, will be.” You can’t control it, so why waste time worrying about it?
This is where confidence comes in. You need to focus on what you can control—your business, your team, your strategy. It all starts with the leadership mindset. Whether you’re a founder, a board member, or part of the leadership team, having the right outlook is critical. This is about being proactive, not just sitting back and waiting to improve.
During tough times, businesses that can stay confident, focused, and driven seize the most opportunities. That mindset shift will put you ahead of the competition in a recession and help you secure increasing market share.
Case Study Example – Seizing Opportunities During the GFC
If you still need convincing that a recession can be a good time for growth, Adrian offers a real-world example. During the Global Financial Crisis (GFC), Adrian was part of a fitness chain that expanded from 30 outlets to 288 across five countries. This growth wasn’t due to a booming market—it was because they identified opportunities that others overlooked.
Rather than waiting for the economy to recover, Adrian and the team pursued growth during the recession, implementing the same strategies he discusses now. They captured market share as competitors pulled back, hired top talent when the talent pool was strongest, and secured advantageous deals in a buyer’s market. Although the GFC was a challenging time, it provided ideal conditions for expansion.
As New Zealand enters another economic cycle, Adrian believes there’s no reason others can’t follow suit. The opportunities are there—you just need to shift your mindset and take action.
