Sales Drying Up? Don’t Make This Costly Mistake

As a business leader, you’ve likely faced moments when the economic outlook darkens.

Panic starts to set in. There are tough decisions to make, people may lose their jobs, and you want to be as fair and safe as possible, right? Wrong. When things start getting bad, you must double down on streamlining the business and allocating resources in areas that are going to pull the company out of the slump.

Now, it can be easy and seem right to make cuts across the board. It’s the safe thing to do. I have seen countless companies fall into this trap, justifying it with:

“Everyone’s pulling back, so we should too.”

Or,

“Everyone will be equally affected by the pull back.”

Let me be clear: this is a costly mistake that can surrender market share, stall momentum, and jeopardize your long-term growth.

When the market falters, great leaders do not retreat—they strategize and seize the moment. Increasing sales and marketing during a downturn isn’t just bold; it’s a proven way to position your business for dominance. Here’s how you can turn a challenging economy into your competitive edge.

Seize the Market When Competitors Retreat

Inevitably, some of your competitors will cut their sales and marketing budgets when the market turns down. This leaves a critical gap in the marketplace for customers that still need products. This is your opportunity to step up, capture attention, and reshape customer loyalties.

By ramping up targeted campaigns, refining your messaging, or expanding outreach, your brand can become the go-to solution locking in sales for years to come. After all, people remember and reward companies that were there for them in tough times.

Protect Your Revenue Stream

Sales are the lifeblood of your business, full stop. And, in a downturn, every dollar is critical. Instead of scaling back, get creative to boost revenue.

One tactic is to redeploy capable non-sales team members into revenue-generating roles. Streamline their other duties to focus on outreach, setting up meetings, and closing deals. Even a 5-10% offset of lost sales can be a lifeline when margins are tight and jobs are at risk. Every effort counts, and resourceful thinking can set you apart.

Streamline to Fund Growth

To fuel this increased sales and marketing push, streamline your operations with precision. Eliminate inefficiencies, optimize processes, and redirect resources to high-impact areas such as shipping and receiving. You want to put your operations into hyper-drive.

This isn’t about reckless cuts, it’s about making your business leaner so you can invest where it matters most. And, in a downturn, the thing that matters most if bringing as much money into the company as possible (sales and marketing).

Appreciate the Situation and Be Honest

The leader that serves everyone serves no one. The most important thing to realize when things start getting bad is that being thought of as fair won’t matter when everyone has lost their job.

They’re just going to remember how you couldn’t get the job done and now they lost their income for their family.

It’s time to be brutally honest about the situation. Those ten people you hired in a non-critical role? Move them to sales or cut them. Cap Ex spending for the year? Move it to the travel and trade show budgets. Free up resources so your people can get out there and sell.

As the leader, your number one job is to keep money coming into the company. The only way that happens is through sales. Otherwise, everyone loses their job and income.

What do you get for being fair and safe while sales plunge and mass layoffs happen? You get fired, if there is even a company to run after all is said and done.

Best Strategy: Plan Ahead

The best thing to do is to avoid this situation altogether. If you’ve built a cash reserve (think Warren Buffett-style), you’re even better positioned to capitalize on opportunities like acquisitions.

Now, this is always a challenge because owners do not want their money tied up in a company just sitting there. Being a leader means fighting for things that are tough. You’ll have to justify the money which gets into having a solid mergers and acquisitions (M&A) strategy.

That’s a conversation for another day, but the principle holds: preparation and bold action create winners.

Lead with Courage

Economic downturns test leadership. They demand tough calls, clear vision, and the guts to defy conventional wisdom. Cutting sales and marketing might feel safe and fair, but it hands your competitors the advantage and puts your people in a bad situation.

Instead, streamline your business, prioritize revenue, and position your brand to thrive when the market rebounds.

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