The coronavirus-induced economic downturn is exactly when small businesses should reinvest in their companies says Bricks Plus Clicks Founder Ryan Bilodeau who cites a 2010 Harvard Business Review study.
Just who are the postrecession winners? What strategies do they deploy? Can other corporations emulate them? According to our research, companies that master the delicate balance between cutting costs to survive today and investing to grow tomorrow do well after a recession. Within this group, a subset that deploys a specific combination of defensive and offensive moves has the highest probability—37%—of breaking away from the pack. These companies reduce costs selectively by focusing more on operational efficiency than their rivals do, even as they invest relatively comprehensively in the future by spending on marketing, R&D, and new assets.
Based on this study, Bilodeau recommends cutting capital expenditures and reinvesting in marketing and advertising, which Bricks Plus Clicks can help business owners accomplish.
“During the 2000 recession, Target increased its marketing by 20% while decreasing its capital by 50%. This was a winning formula for them, and one that I think can be adapted by small businesses alike. All companies are struggling at this time; the question is where they will be when the economy reopens. You should be prepared for this as a business if you are going to bounce back.” said Ryan Bilodeau.
In addition to web design and development, Bricks Plus Clicks is equipped to help companies craft digital ads on all social networks and accept online payments among other services.