How To Come Out of The Recession On Top - Robert Craven
Digital Agencies
The recession (when it starts with consumer spending falling) will be tough on many digital agencies, with companies and clients cutting back on their digital marketing budgets. However, there are steps you can take to ensure your digital agency weathers the recession as well as possible.
Focusing on cost-cutting measures that don't hurt quality is the first step. Optimize operations for efficiency without sacrificing the quality of your services or products. Also, look for ways to increase value for your existing customers in order to retain them throughout the recession.
Ensure that you have a steady cash flow coming into the company by finding new customers who are not affected by the recession. Look for opportunities to capitalize on emerging industries or expanding sectors such as health care, sustainability, or technology.
Listen to Robert Craven to learn more about successfully coming out of a recession. Here is an introduction from his article in the Agency Growth Book that he starts by citing economic research from McKinsey.
"Studies from McKinsey (2019), Bain (2019) and Harvard Business Review (2018, 2019) demonstrate that companies far outperformed the competition if they used recessions to:
1. Strategically invest
2. Managetheirworkforceswithaneyetothefuture, and 3. Unlock their balance sheets.
On average, these companies had a 17% compound annual growth rate (CAGR) during the 2008-09 recession compared to 0% for those that took cost-cutting too far, shed key people, and with it, their knowledge hoarded cash and did not prudently invest for the future.
So, what does that mean for you? What should you do?
1. Understand your options... How can you respond?
2. Understand the consequences of those choices
3. Learn the lessons from the Covid-19 Pandemic
4. Understand the action required
5. Take the action required! "
