Large companies understand that business cycles never last forever.
Have you ever wondered why, during times of plenty, companies seem to get stingy? Airlines devalue their frequent flier miles and benefits, credit cards offer tougher terms and fewer rewards, hotels stop passing out free upgrades and complimentary fruit baskets. It’s because economic theory suggests that in good times customer acquisition is easier. Moreover, when the economy is doing well, buyers will pay more to receive less, because the psychology of plenty makes them less concerned with price.
Is your voiceover business doing well at the moment? Good for you! It’s tempting to celebrate that success with big purchases, artery-clogging amounts of lobster, and maybe doubling down on your marketing expenditures. You might even feel so flush that you’re more likely to cut a client a deal than you might have been when money was tight.
Fight those instincts!
If you are having a great year, or great five years, don’t assume your business is immune to shifts in the greater economy. Recessions happen. Even Great Recessions happen….and in a world more volatile than ever before, the next downturn could start tomorrow. If your business is booming, now is the time to cut costs, and charge as much as you can for every project. Reduce extraneous marketing spend, even, (can you believe I’m about to say this?,) watch your coaching & demo budget a bit more closely. Save and invest your money, don’t spend it. Be responsible.
When the economy turns, you’ll need those funds to pour into marketing and other business-building expenses. You’ll be competing against hungrier talent and you will be forced to accept rates that are less than ideal in some cases. Are you prepared for lean days, and ready to spend to sustain your business when they come?
Small-business-people are great at hustling to build their enterprises, but we don’t always think like CEOs. Put your executive hat on, and think about planning for a rainy day if you want to stay dry when the storm comes.