TCM #008: Why Now Is The Time To Build (During a Recession)
Read time: 3 minutes
Hey 👋 – Tom here.
Happy Saturday to 878 motivated ecommerce entrepreneurs.
Below is your one short tip on marketing and revenue growth for your ecommerce business.
Enjoy.
So, you're thinking about building a direct-to-consumer (DTC) ecommerce brand during a recession?
Good – because now is actually the PERFECT time to build.
I know. I get it.
It sounds counterintuitive, but stick with me, and I'll explain.
Grab your morning beverage of choice, and let's dive in.
Why a recession is the best time to build a brand:
1. Lower ad costs 📉
During a recession, ad costs tend to drop as other businesses pull back on their marketing budgets. This means you can swoop in and snatch up prime ad real estate at bargain prices. Tech stocks have dropped by as much as 70%. Meta/Facebook needs to spark growth. But remember – you still need to invest in quality creatives.
2. Less competition 💪
As other businesses struggle or even fold, this leaves a gap in the market for your DTC brand to shine. Dropshippers and others seeking get-rich-quick schemes have moved to crypto, NFTs and AI. Businesses that didn't focus on profitability have been and will continue to be wiped out. With fewer competitors, it's easier to get noticed and attract customers seeking new solutions from genuine brands they can trust. But don't get too comfortable; use this opportunity to establish your brand and build a loyal customer base.
3. More talent available 🧠
In a recession, many talented people are on the lookout for new opportunities. Take advantage of this by hiring top-notch talent to help build and grow your brand. There are a growing number of experienced people on Upwork and Fiver due to layoffs – you need to weed through, but there are diamonds in the rough.
4. Embrace innovation 💡
Recessions force businesses to think outside the box and adapt. This is the perfect environment for a DTC brand to thrive, as you can experiment with new ideas and create unique offerings that set you apart from the competition. It's also a perfect opportunity to partner with app developers, ask for cheeky discounts and take advantage of extended free trials.
That's it. It's time to build.
This week's newsletter is intentionally shorter than usual – but I hope impactful.
Give yourself permission and the confidence to take action despite the Constantly Negative News cycle.
Bad times don't last forever.
Lay the foundation while others are flustered.
If you need more guidance or want to chat further, don't hesitate to reach out. I'm always happy to help.
I had to push back the release of The Ecom OS to later in April – my own brands have grown over & above what I'd forecast. I've had to take time to put out fires and adjust accordingly.
(Good problems, for sure.)
However, I will finish the editing and have The Ecom OS rolled out later this month. I promise it'll be worth the wait.
Go well, and have a fantastic weekend – remember to touch grass. 🌱
Cheers,
Tom
P.S. Ready for more? Here's how I can help you level up your ecommerce game:
- The Ecommerce OS: This is my go-to system for skyrocketing from $0 to $1M in revenue (while staying profitable). (Early birds, you're in for a treat—enjoy 50% OFF on launch day later this month.)
- Team up 1:1: Together, we'll outline your goals, craft a knockout strategy, and create a tactical action plan to supercharge your Shopify store. (Join 200+ clients who have already upped their ecommerce game.)
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Catch you next week or over on Twitter.
