About This Episode
We’ve been hearing it from a lot of business owners lately: after the post-COVID boom, things have started to slow down, and they’re worried it could get worse in 2025. With lingering uncertainty around the economy, rising interest rates, and fierce competition, many are wondering what they can do to keep their momentum going up and avoid a continued downturn.
But here’s the deal: economic turbulence doesn’t mean your business has to stagnate or, worse, regress. As Tom DiScipio, Managing Partner and Client Advisor at IMPACT, shared in this episode of Endless Customers, this is an opportunity to return to your fundamentals, double down on your brand, and, yes, lean into calculated risks.
Post-COVID Growth for Businesses
“During COVID, we saw businesses thriving—up 30%, 40%, 50%,” Tom said. “But now, many have seen that growth reset back to pre-COVID levels.”
It’s a sentiment echoed by countless business owners. Maybe you’ve expanded your team, invested in new initiatives, or scaled up operations to match that boom. And now, things have cooled off. It’s frustrating. It’s scary.
Tom likens this to the stock market: “After a parabolic run-up, there’s often a pullback—but the key is to stabilize and build again from that higher baseline.” The real challenge lies in how you respond to this reset.
Do you panic and start slashing budgets, or do you double down on the practices that brought you success in the first place? Spoiler alert: the answer lies in the fundamentals.
Getting Back to Basics Through Business Fundamentals
When the market contracts, businesses often veer away from the basics that made them successful. Morning huddles, streamlined processes, strategic investments—these practices can take a backseat during periods of growth and experimentation.
But during pullbacks, they’re more critical than ever.
“You need to ask yourself: Are we managing cash flow effectively? Are we watching profit margins? Are we prioritizing the right tools, services, and even team members?” Tom explained. “This is the time to get strategic and revisit the core elements of running a healthy business.”
Tom pointed to Marcus Sheridan’s They Ask, You Answer approach as a perfect example. Developed during the 2008 recession, it focused on answering customers’ questions transparently and building trust, which led to growth despite a struggling economy.
In other words, tightening up your fundamentals isn’t about scaling back—it’s about setting a solid foundation for growth.
Standing Out Through Brand
In a saturated market, it’s not always your product or service that sets you apart. It’s your brand.
“When competition gets fierce, your brand becomes your most valuable differentiator,” Tom said. “How helpful, customer-centric, and trustworthy you are as a business will determine whether customers choose you—even if your prices are higher than the next guy’s.”
And that’s not just about flashy logos or clever marketing campaigns. Your brand is the sum total of every interaction, piece of content, and customer experience.
Alex added, “If you can explain to your customers why your prices have increased—whether it’s due to rising shipping costs, manufacturing, or inflation—you build trust. People respect transparency, and they’re more likely to stay loyal to brands that treat them with honesty and respect.”
Be Fearful When Others Are Greedy, and Greedy When Others Are Fearful
Warren Buffett’s famous advice is a goldmine for navigating tough economies: “Be fearful when others are greedy, and greedy when others are fearful.”
In business terms, this means that economic downturns can be your time to shine. As competitors scale back marketing budgets or halt innovation, you have the opportunity to stand out.
“This is when you lean in,” Tom said. “During the 2008 financial crisis, Marcus invested in content that made his brand trustworthy at a time when trust was scarce. The companies that invest wisely during downturns are the ones that come out ahead when the market rebounds.”
For example, if other companies are cutting ad spend, you could dominate your market by filling that void. Or if competitors are hesitant to innovate, you could launch that new product or service and capture untapped demand.
Investing in People, Processes, and Technology
Even during lean times, innovation doesn’t have to take a backseat. But it does require strategic thinking.
Tom shared a story about a $100 million company still managing sales on spreadsheets. While it worked in the short term, it wasn’t scalable.
“If your goal is to double or triple your revenue in the next few years, you need systems in place that can handle that growth,” he said. “That might mean investing in a CRM, streamlining processes, or training your team to operate more efficiently.”
But innovation doesn’t always mean flashy new products or cutting-edge tech. Sometimes, it’s about getting more out of what you already have. Can you reduce time-to-market? Improve customer experience? These small innovations can make a big impact on your bottom line.
Don’t Forget Customer Loyalty
In times of uncertainty, your existing customers are your most valuable asset.
“Loyalty is the ultimate hedge against economic swings,” Alex said. “If you take care of your customers, they’ll stick with you—even when times get tough.”
Tom emphasized the importance of creating entry points into your brand that build trust and loyalty. He gave IMPACT+ as an example: a free online learning community that introduces businesses to IMPACT’s approach without requiring a huge upfront investment.
This “freemium” model creates goodwill and provides value, which can lead to stronger customer relationships and long-term growth.
Navigating Your Business in 2025
As we move into 2025, uncertainty is likely to linger. But the businesses that thrive will be the ones that stick to their fundamentals, invest wisely, and keep their customers at the center of everything they do.
So, here’s your action plan:
Revisit your fundamentals. Tighten up processes, manage cash flow, and focus on running a healthy business.
Double down on your brand. Build trust through transparency, helpfulness, and customer-centric strategies.
Lean in when others pull back. Use economic downturns as an opportunity to capture market share and differentiate yourself.
Invest in innovation. Whether it’s tech, processes, or customer experience, find ways to improve your efficiency and effectiveness.
As Tom said in closing, “None of us have a crystal ball. But if your company is aimed in the right direction, with the right fundamentals in place, you’ll be in a position to navigate anything the economy throws your way.”
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