People think that recessions cause businesses to fail.
And they do.
But most businesses fail for other reasons.
Here are some examples:
- Travel businesses when a pandemic hits
- AirBnB owners when their city clamps down on vacation rentals
- Niche website when Google does an algorithm update
- Property investors when interest rates climb to 7%
- Course businesses when AI arrives
- Regulated industries when the government changes legislation
- Print media when the internet arrives
- Big Twitter accounts when the algo gets throttled
You get the idea.
We never think it will happen to us…
But it’s smart to be thinking ahead.
In 12 years of building my business, StoryLearning, I’ve seen a lot of changes.
Businesses come and go.
And I’m grateful for this perspective, because it’s taught me not to get complacent.
To be thinking ahead.
And while recessions can certainly kill businesses…
Recessions have the advantage of being predictable!
You know one’s coming every 7 years…
So at least you can see it coming, and get your house in order!
But there’s something else I’ve noticed about recessions…
Recessions can be very good for business.
See…
When hard times hit, businesses need help fast, and typically care about two things:
- Cutting dead weight
- Getting the smartest people to help them
But it’s not just B2B.
When times are tough, people start looking after themselves in different ways:
- Meditation teachers in the pandemic
- Starbucks in a recession
- Nutrition coaches in lockdown
And when you need help, who do you turn to?
Experts.
And who’s the first expert you turn to?
The expert you know.
This is the power of a personal brand business that solves problems for people.
When times get tough – you’ll be the one people turn to.
But only if:
- You have a strong brand (So people know you)
- You have a clear value proposition (They know what you do)
- They believe you’re the best at that thing (You have expert positioning)
- You can properly charge for the value you provide (You have a strong business model)
That’s why I believe a good personal brand business is effectively recession-proof.
But only if you build it right.
So while I’m not hoping for a recession any time soon…
And I certainly don’t wish hardship upon anyone…
I know that my business personal brand will survive and thrive for the rest of my career.
Namaste,
Olly