The First Thing Businesses Cut in a Downturn Is Exactly What Grew Ours to $120 Million

"Global layoffs have been piling up. We've seen Amazon slash 16,000 corporate roles, UPS downsize 30,000 operational jobs and Nestlé cut 16,000 positions. But for most business owners, cutting staff should not be the first move when cash flow gets tight. That's because revenue problems can often be marketing problems in disguise. Oftentimes, there are ways you can cut back or improve revenue flow without resorting to layoffs - and I have real-world experience with this."

"In 2008, I made a marketing decision that crippled my revenue until 2010. In 2020, a similar situation arose during the pandemic, but this time I tried another tactic, and the results set my business on a new trajectory that led to us nearly doubling revenue in 5 years - from $64 million to nearly $120 million. Here's exactly what I did and how you can put it to use for your business."

"During the 2008 housing market crash and subsequent recession, my business PostcardMania suffered a drastic hit because 46% of our clients were in the mortgage and real estate industries. When we lost a majority of our customers and revenue, I was dead set against laying anyone off, so I took a pay cut and - against my better judgment - I also cut back on my marketing. That was a huge mistake. The following year was even worse, and I wasn't even sure we were going to make payroll. Revenue was down about 15%, over a million less than in 2008."

"Marketing saved us back then, and it saved us again in 2020 w 1. Stay consistent with your marketing to avoid drops in leads and revenue 2. Make conversion a priority - you could be missing opportunities. 3. Get super organized with your follow-up flow to increase sales long-term."

Global layoffs are increasing, but cutting staff should not be the first response when cash flow tightens. Revenue shortfalls can stem from marketing issues rather than staffing problems. In 2008, a reduction in marketing during the housing crash led to severe revenue damage until 2010. Marketing was restored to pre-crash levels and increased, enabling a rapid recovery and a record revenue year. In 2020, a similar revenue pressure emerged during the pandemic, and a different marketing approach produced a new growth trajectory, nearly doubling revenue over five years. The key actions include staying consistent with marketing, improving conversion rates, and building an organized follow-up flow to increase sales over time.

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