The #1 mistake businesses make during an economic downturn

I've watched too many smart business owners make the same mistake during a sluggish economy: they panic and slash their marketing budgets across the board. It feels safe. It feels responsible. And it's often dead wrong

The #1 mistake businesses make during an economic downturn

Here’s what I’ve learned after nearly three decades working with franchisors and business brokers: economic uncertainty isn’t a signal to pause your lead generation efforts; it’s a reminder to approach them with greater strategy and precision. Tougher conditions simply demand smarter, more intentional action, and businesses that adapt their approach now are the ones that stay ahead. Those who fail to adjust will inevitably get left behind.

Don’t let fear kill your business

During turbulent times, the temptation is to cut your marketing budget and hope for the best. But this approach creates real problems. Your leads dry up just when you need it most. Your brand goes quiet while competitors stay visible. Buyers may be fewer during tough cycles, but they never disappear, there are always customers in every economy.

The other trap? Chasing quantity over quality. You can flood your CRM with 500 new names, but if only three are qualified buyers, you’ve just burned money and demoralized your sales team. For franchise systems and recurring-revenue businesses especially, this volume-over-value approach inflates acquisition costs and tanks conversion rates.

What actually works

The companies that emerge stronger don’t freeze: they focus. Instead of cutting everything, they cut what’s not working and double down on what is. They become strategic, fast-moving ninjas, sharpening what works and eliminating what doesn’t.

Hire the experts and get results faster

Top-performing companies don’t go it alone, they rely on proven experts. By partnering with a company that knows lead generation you avoid costly mistakes, accelerate results, and ensure your marketing reaches the right audience at the right time.

Measure what matters

Track customer acquisition cost, lifetime value, and conversion rates. A channel bringing 100 leads at £50 each that doesn’t convert is worse than one bringing 10 leads at £200 each with a 30% close rate.

Squeeze more from owned content

That case study you published six months ago? Turn it into a LinkedIn series, an email campaign, and a webinar. Repurposing costs almost nothing but keeps you visible when prospects are researching.

Nurture, don’t just capture

Not everyone who downloads your franchise brochure is ready to buy next week. Build lead scoring and nurturing sequences. When the economy’s uncertain, buyers move slower, but they still move if you stay in touch.

What this means for your brand

Economic uncertainty separates the strategic from the reactive. The companies that thrive aren’t the ones who freeze their budgets out of fear. They’re the ones who get surgical: cutting waste, focusing on quality over quantity, and measuring ruthlessly.

So before you make that across-the-board budget cut, ask yourself: am I making a strategic decision, or am I just scared? Because one of those positions you for growth, and the other guarantees you’ll be behind the 8-ball when things improve.

ABOUT THE AUTHOR
Pamela Labelle
Pamela Labelle
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