The Key to Surviving the 2020 Recession
Let’s address the 900lb gorilla in the room: people far smarter than the both of us are getting ready to make insane amounts of money from coming recession. Meanwhile, people far more oblivious than the both of us are about to lose the roof over their heads.
If you need to be convinced about the recession, go check out the Chicago Business Barometer, the treasury yield, or this chart depicting all of the worlds money markets in one visualization.
In the next 15 minutes, I’m going to share with you 2 things:
- How to know if your business will survive
- How to thrive in the recession
Batman and Business Darwinism
One of the best representations of what’s going on in the business landscape right now is a brilliant, 4 minute scene from The Dark Knight Rises.
The hero, Batman, finds himself face to face with his nemesis, Bane. In the background, you hear is the subtle sound of water crashing – there’s no musical score playing. Bane’s henchmen, armed to the teeth with weapons, are oozing with discomfort as they watch. The whole scene feels uncomfortable. Batman fights with unbridled fury, landing punch after punch on Bane, and yet, Bane doesn’t even flinch.
“Peace has cost you your strength. Victory has defeated you”.
The fight continues, and Bane is winning. Like all Super Hero movies, you expect the hero to make a comeback. But Batman doesn’t make the comeback. He’s confronted with the reality that he wasn’t ready. Bane beats Batman down, shatters his spine, and throws the lifeless body down a sewer line.
Thriving economies have lead to businesses thinking they’re doing well, when in reality, they’re about to get ruthlessly beaten down by a merciless market because they’re not adapted for success. Peace has cost them their strength. Victory has defeated them.
Will You Die, Survive, or Thrive?
So, I’m going to show you the easy way of figuring out if your business will die survive or thrive, additionally, I’m going to show you a marketing trick to make sure that you thrive in any economic environment.
You Will Die If:
If you’ve been running your business like it’s 2002, with poor online presence, and relying on lead generation sources you have no control over like: BNIs, print advertisements and referrals.
If you’re big in your local area and have enough of a brand, then you’ll survive, but surviving is actually a worst case scenario and here’s why…
Why Surviving is a Worst Case Scenario
Part of life is learning from mistakes and improving on them. But imagine if you were making a mistake, and never learned from it. You would keep making that same mistake over and over.
For example, less than 50 years ago, people smoked cigarettes and had no idea they were unhealthy. In fact, some Doctors would even recommend them. Only after years of smoking and thousands of deaths to smoking-related diseases did society become aware of how bad cigs were.
So to bring it back to business, most business owners that survive recessions go through a cycle of feast and famine, where:
- The business slowly grows for a few years.
- A recession comes along.
- Years of progress are completely reset / wiped out.
- Repeat the cycle.
And being caught in that limbo is so disheartening that most business owners don’t even believe in rapid growth, which is tragic because I’ve seen clients go from 2 trucks to $2 million in as little as 4 years.
At least if your business dies, then there’s irrefutable proof of a mistake and you can then learn from it.
How to Thrive
A recession is the perfect opportunity to swallow up market share. while businesses struggle to stay afloat, you will be able to dominate the market if you know this one thing: The Meta.
And to make sense of it, I have to share a story.
A few years ago, I started to competitively play a strategy game called Magic The Gathering. And when I started, I would craft my own strategies without any professional guidance. The result is that I would have a bunch of unique strategies that would never win tournaments. And no matter what I came up with, I would lose over and over.
One day, I made the decision that I wanted to start winning. And to do that, I applied some of my business strategies to:
- Figure out what my successful competitors were doing.
- Figure out the most effective strategies.
And to my surprise, the top competitors weren’t doing anything creative or complicated. In fact, there were less than 7 game winning strategies that they would use. And these game winning, and battle tested strategies became known as “The Meta”.
Before knowing the Meta, or, the “best set of strategies”, I was a casual, I played like a casual, and thus I would lose.
Once I learned the Meta, not only would I beat down the casuals, but I stood a chance against the toughest competitors.
That’s when I realized the connection between Business and Magic.
In today’s local markets, most people are playing the business game “casually” but expecting rainmaker results.
The key to thriving in recession is understand “The Meta” of the environment.
Cracking the Code
The Meta is slowly changing. To give you an example, when Blockbuster launched, they followed the Meta. However, they didn’t adapt as The Meta changed and were swallowed up by Netflix.
15 years ago, Sears, Best Buy, GameStop, and Barnes & Nobles, all followed the meta. However, as it changed, they didn’t adapt and are now shrinking thanks to Amazon.
Most local businesses today still live in the past and were built with the Meta of decades past. And because of that, they’re basically serving themselves on a silver platter to their competitors for when the next recession hits.
The Meta for today is control and predictability. To survive, businesses need a SYSTEM that can predictably generate leads, which they can control the speed of.
A system, by definition, means it has controls. If you input X, you will predictably get Y. In most cases, X is money and Y are leads.
Things That Are Not Systems Nor Reliable:
- BNIs: The input is time and a little bit of money, but the output varies. You can’t control how many leads you get, and worst of all, if you need to, you can’t predictably scale it to generate more leads.
- Referrals: Referrals have the same issue as BNIs. You’ll get some business, but you don’t have any way of predictably controlling how many you’ll get. Additionally, you don’t really have a resource that you can “input” to get some more leads.
- Direct / Mail Marketing: People still do this..?
How to Build the System
To build a system that successfully generates leads, you need 2 things:
- You need to know how much revenue the average client brings in.
- You need to “have skin in the game” to invest in marketing.
If you know how much revenue a lead generates, then it’s all about how much money you can input into the system.
For example, if you know that the average client brings in $300 in revenue and it costs you $97 marketing dollars to acquire that client.
Input (X) = $97
Output (Y) = $300
Then it’s all about looking at your calendar, seeing how much time you have to service those clients, and then actually fulfilling.
When The Recession Hits
So, when the recession hits, your competitors will be pulling rabbits out of hats, taking loans, and scrambling to figure out how to increase their market share in an ever more competitive market. They’ll be playing the business game like casuals.
Meanwhile, the companies that have their Predictable Lead Gen War Machine set up can just keep pumping money in and getting more and more market share and profits.
If you’re interested in having your own Predictable Lead Gen War machine, then make sure to check out our free case study to learn more.