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Mindsight Behavioral Group:
Road to Success
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Cottonwood Coffee:
Pandemic Positioning
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Moss Creek Wool Works:
A Furry Take
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Hoosier Security:
Building Community
Page 28
costs of the Vietnam War and a struggling
stock market. The Great Depression, that
started in 1929, was triggered by a run on
the banks, but the economy was already
greatly destabilized by the international
commitment to the gold standard for
currency. Fast forward to modern times,
and in 2001, the trigger event was the
dot-com bust. In 2008 it was the housing
collapse. Today it is COVID-19.
With the trigger event comes a rapid drop
in economic stability. This is when the five
stages of navigating (or not navigating)
the crisis begins. First, small businesses
go through the Shock stage. For some
business owners it is momentary, but for
others it results in an extended period of
inaction. This freeze-up results in the rapid
demise of those businesses.
The next stage is Desperation. Similar
to the illogical run on toilet paper, mass
psychology causes many business owners
to take spontaneous action, not because
it is needed, but because everyone else is
doing it. It is reactionary and panicked
and disregards what the business really
needs. These businesses unintentionally
undermine their own recovery, and they go
by the wayside.
The first two stages of Shock and
Desperation clear out a lot of unhealthy
businesses; businesses that were doing
well enough, not because of their
structural integrity, but because in a
booming economy, it is hard to do wrong.
As Warren Buffet once famously said,
“When the tide goes out, you see who was
swimming naked.”
The third stage of the crisis trend is
where small businesses start to strengthen
and move forward. This is where the
Microsofts and the Airbnbs of the world
are born. And this is where your business
strengthens. The goal of this guide is
to get you to the third and fourth stages
immediately and position yourself for the
fifth.
The third stage of the small business
recession trend is Evaluation. Businesses
at this stage consider what moves are the
right moves. It is a precarious stage since
the business owner mu
decisions but often in
The consideration of e
must. The ones who s
decisions struggle and
YET THE BUS
OWNERS WH
THE CHANGIN
OF THE MARK
THEN DO SOM
ABOUT IT AR
WHO PLANT
TO FLOURISH
In this guide you will
exactly that, including
the Tell” technique.
Businesses at the four
and grow during a rec
Deliberate Action. Th
cater to historical need
and delivering on solu
needs. This stage is ab
core competencies but
way they are delivered
transitions happen, su
coffee shop that chang
to-your-house service.
promotional T-shirt sc
to a cause-focused T-s
In other words they fin
how they do what they
in the process they fin
existing customers an
The final stage of the
is Surge. As the econo
demand increases rap
had been sidelined ent
other buyers with imp
buy more. This is mat
supply. All the compe
You'veGotThis
MIKE
Michalowicz
PROFIT AND
THE BUSINESS
HIERARCHY OF
NEEDS
Page 16
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Recession
Response
Checklist