Are British businesses being forced to spend more money on advertising/marketing due to UK economic downturn?
The first thing you learn in Business 101 is that: ‘You need to spend more money to get customers during an economic downswing because there are fewer customers out there and reaching a smaller isolated number is harder then reaching a mass audience’ The amount of businesses that understand that… Very few. Thats why many of them go out of business. They haven’t prepared for what every economy will do which is cycle down. Most businesses think that good times last forever so they fail to plan for when things get tough. Many don’t keep cash reserves on hand to float the company through bad times. Every time you make a sale a portion of that should go to a fund that covers you for several months of expenditures. While you are paying your bills for 3 months and scaling back for a longer haul your comp is struggling to keep their doors open. When they start closing you need to be in a position to grab their customers which in turn allows you to keep your doors open. Not advertising and go
