A recession has been on the horizon for months (if not years) now, and you’ve probably thought a lot already about what it means for your business should it happen.
While “recession” sounds scary — especially if you lived or worked through the Great Recession of 2008 — it is actually a normal part of a healthy market cycle. We’re long overdue for one, in fact, and it will effectively “reset” the economy. At least, that’s what the experts say (and I watch a lot of them).
But what exactly does a recession mean for you as a small business owner?
The TL;DR version? You’re going to have to think about your offers differently to keep serving your audience well.
The “I’ll keep reading” version? Well, keep reading (or watch the video below).
It’s normal that when economic uncertainty hits, people are going to be feeling a bit more anxiety than usual. So, they’re going to be tuning into content that shows them how to protect their goods and services, their homes, their business, their finances, you name it. They’ll be consuming less content that pushes them to just “get out there and do it.”
A lot of people aren’t going to be feeling “lazy” and “unmotivated” right now. If anything, they may be working harder than they have been to secure a safe and affordable future for themselves or their families.
And that motivational stuff will start to feel a little out of touch because most people will be feeling like they’re already doing everything they can.
Okay, this one needs a little bit of explanation. I know that a huge part of business is creating an experience for your customers and clients, and I am by no means saying you should toss that mentality.
What I am saying though is that a full-on start to finish type of product isn’t what most people are going to be looking for. Even if it is a good investment at a good price, there’s a subconscious belief that it’s not something they can afford or should spend their money on right now.
Those smaller purchases are helping people escape the reality around them, even if it’s just for a moment. And that’s certainly what they’ll be looking for with a possible upcoming recession.
During a recession, higher-ticket, mastermind-level offers are probably not going to be as popular as they are now because — you guessed it — those aren’t cheap. But don’t think that means you don’t have anything to offer your customers and clients if that’s currently the pillar of your offer stack.
I’m not saying no one will buy it. You will probably still have a handful of people, just not as many as before.
This is the perfect time to create a digital product if you haven’t already. I talk a lot about pulling from content you already have, and this is no different.
Pull a module from your bigger course and sell it as a mini course. Pull checklists and PDFs. Do whatever you can to make a smaller, but still valuable, offer.
Don’t forget people are still going to be grateful to work with you. Why? Because what’s easy for you may not be easy for them. Somebody is going to find what you have helpful.
Also called “The Lipstick Index,” this is a term coined by Estée Lauder. It’s basically just the idea that whenever there’s an economic downturn, sales for affordable luxuries, like lipstick, go up significantly. They want the Chanel (or in this case, Estée Lauder) lipstick but not the Chanel bag.
In other words, they’re looking for a tiny moment of happiness that they can afford.
Well you, my friend, have come to the right place! Digital products just so happen to be my thing, and I’ve coached hundreds of small business owners in creating their very own shop full of digital product goodness!
If selling one sounds like something you want to incorporate into your business model in the upcoming months, check out this post and video below. I walk you through everything you need to create your first digital product, and how to market it effectively to your audience!