How to Win When the Economy Slows
By Competon Business Journal
Look Beyond the Budget
When a small business shutters, many assume it’s because of financial missteps or poor leadership. But more often, the quiet killer is a lack of forward-thinking marketing. Take a page from the history books: Procter & Gamble flourished during the Great Depression not by tightening the purse strings, but by getting creative. They didn’t just survive—they invented the “soap opera” to keep their products top of mind by tapping into what people still needed—cleanliness—and what they craved—escapism.
The California Advantage
Being based in California offers its own unique edge. Despite the economic headwinds, California remains one of the largest and most diverse economies in the world. That diversity translates to a broad and varied consumer base—meaning those with disposable income are still out there, ready to spend. The opportunity lies in optimizing each customer experience and increasing your average ticket value. It’s not just about bringing customers in; it’s about giving them reasons to come back and spend more.
The Back Story
While others panicked, Procter & Gamble went full throttle. In the middle of the Great Depression, a time when most businesses were slashing budgets and ducking for cover P&G did the unthinkable: they doubled down on marketing. Instead of retreating, they seized the moment and rewrote the playbook for surviving tough economics and volatile markets.
P&G understood something their competitors didn’t—people still needed soap, and they still craved stories. So they didn’t just advertise; they entertained. With savvy radio sponsorships like the now-legendary Oxydol’s Own Ma Perkins, they didn’t just reach their audience of housewives—they captivated them. Thus, the “soap opera” was born literally putting the “soap” in household drama and making their brand a part of daily life.
But they didn’t stop at storytelling. P&G launched synthetic innovations like Dreft detergent and Drene shampoo, staying one step ahead while the economy lagged behind. Their secret weapon? Relentless market research. They listened, learned, and pivoted, turning insights into action while others froze.
And the biggest power move? They increased their radio ad spend while the rest of the industry cut back. That bold bet didn’t just pay off—it made P&G a household name and a symbol of strategic grit.
This wasn’t luck. It was bold vision, executed with precision. And it’s a timeless lesson: when markets shift, don’t shrink—strategize, innovate, and lead.
Smart Marketing Doesn’t Require Big Budgets
Forget flashy campaigns—what you need is focused relevance. A simple, well-designed countertop flyer can outperform a thousand social media posts if it’s targeted. An informative on-hold message can upsell services while your customers wait. Think smart and local. Every touchpoint is a chance to build trust and drive revenue.
Margins Matter
To market well, you must leave breathing room in your margins. Low-volume, high-margin products and services offer stability during lean months. Revisit your pricing strategy. Look for ways to bundle premium offerings. Build in value without undercutting your profit. Remember: profit margin is your true economic buffer.
Cutting Costs? Be Cautious.
California consumers expect a certain level of service and they’re vocal when they don’t get it. A poor customer experience doesn’t just hurt retention; it can go viral faster than any ad you create. While trimming expenses may be necessary, always assess how cuts might compromise service quality. Because in a competitive state like ours, a single bad review can echo loudly.
Ask for Help, Grow Stronger
You don’t need to be a financial wizard to stabilize your business. Digital tools like QuickBooks, Xero, and modern banking apps make it easier than ever to monitor cash flow and identify waste. And don’t hesitate to lean on professionals—accountants, consultants, or even savvy peers. Strength lies not in knowing everything, but in knowing when to ask for insight. “Consult your CPA on what improvements they suggest you make to better financial controls,” says Rojas and Associates, a California CPA firm.
Legacy Is Built in Tough Times
Businesses don’t fail because of hard times they fail because they fail to adapt. The leaders at P&G didn’t wait for better days. They created them. You can do the same. Whether it’s through rethinking your marketing, enhancing your pricing structure, or simply listening more closely to your customers, your growth story can start right now.
