Should you spend money on branding during a recession?

Small Business.

Today we have a lot of uncertainty in our economy. Consumer confidence is waning and everyone seems broke. So, is now a good time to spend money branding or should you hunker down and spend nothing, just wait for this to pass?

There are two schools of thought when it comes to a recession and branding your business. The first is to continue to invest in your brand and spend the money. The second is, cut down or cut off the spending for branding, advertising and your marketing till the storm passes.

To speak frankly, now is not the time to quit and get rid of your lead source. Have the specials and let consumers know you are here and ready to do business. Sure, you need to be lean and mean during this time and there are plenty of ways to reduces costs and overhead in the business, but stopping your brand campaigns may not be them. Why say "may not"? Well, sure you may be wasting your money if you don't have the right methodology. But let's assume you do, now is the time to capitalize on the market condition and gain a competitive advantage. Here's how.

Now is the time for deals. You must remember, besides morticians, cops and doctors, almost all businesses are feeling the impact of slow business, and that includes media companies. Now is the time to negotiate advertising deals. Chances are, your competition is spending less and now is your chance to get better advertising rates on media than you normally would. And businesses advertise for one reason, they want more people to buy more of their products and services more often.

Second, now is the time to take over market share while the weaker competition dies off. Yes, businesses are run by people and they feel the pinch. They may give up on their product or service or give up all together. Appropriate branding gets your customers to remember you and feel comfortable and familiar. When it comes time to choose, they will remember your brand.

Be smart, do your homework and research and take the time to develop your methodology. Also, consider hiring an advertising agency. They can often help you save money and give you some invaluable advise at the same time.