Essential Steps for Launching a Small Business, Especially During Economic Downturns

Is it wise to launch a business during a recession, or is it better to wait? This question frequently arises during challenging times, such as the pandemic, prolonged conflicts, or periods of economic slowdown. While there’s no universal answer, what’s clear is that planning and mapping are critical to uncovering hidden potential. For small businesses, informed decisions can determine success or failure.


The Importance of Planning and Mapping

During the planning phase, it’s crucial to evaluate both internal and external factors. Frameworks like SWOT (Strengths, Weaknesses, Opportunities, Threats) or BCG can be instrumental in structuring your analysis. Before rushing into any business idea, understand the strengths and weaknesses of both the business and yourself (especially in a small business where the entrepreneur and the business are closely tied). Identify potential threats, but most importantly, recognize opportunities.

A business plan, even a basic one, is essential to assess the financial viability of the business. Additionally, defining the brand DNA—core values and the unique selling proposition—is critical. This forms the foundation for engaging with customers and standing out in a competitive landscape.


Building a Strong Brand Identity

Creating a strong brand identity starts with choosing a name, designing a logo, and crafting a visual identity that aligns with your business's core values. A logo should be simple, memorable, and reflective of your business. Pair it with a slogan or tagline that effectively communicates the essence of your brand, especially for a new business entering the market. Your visual identity should include a consistent color palette, fonts, photographic or illustrative styles, and a layout grid. These elements must remain cohesive throughout your brand’s journey but can be refreshed periodically to stay relevant.


Selecting the Right Digital Assets

Choosing appropriate digital assets is crucial. Start small with the essentials:

  • A well-designed website with high-converting landing pages is non-negotiable.
  • Establish a presence on the most relevant social media platforms.

Avoid being tempted by low-cost, all-inclusive service packages. Instead, focus on your primary needs and work with skilled professionals to achieve the best results. As your business grows and insights develop, you can expand your online presence strategically.


Launching with a Marketing Plan

Once your business is operational and your brand is established, it’s time to start selling your product or service. Create a marketing and advertising plan that aligns with your budget and desired sales pace. In the early stages, invest heavily in a launch campaign to cut through market noise, then allocate a consistent percentage of revenue to ongoing marketing efforts.


Tailoring Your Media Mix

Your media mix should be focused and strategic:

  • Local Businesses: Invest in neighborhood marketing, city portals, local PR, geographically targeted signage, and influencers from the area. Use digital targeting to avoid unnecessary expenses.
  • National Sector-Specific Businesses: Focus on industry-specific magazines, professional forums, niche websites, relevant social media groups, direct marketing, and partnerships with complementary businesses.


Building and Maintaining a Customer Database

Every interaction with customers, suppliers, or leads—whether or not it results in a sale—should be documented. Build a detailed customer database to use in future marketing efforts, particularly in targeted digital campaigns.

Develop a customer journey using tools like Marketing Automation to engage customers throughout their lifecycle. Examples include:

  • Sending newsletters.
  • Birthday greetings and loyalty acknowledgments.
  • Celebrating milestones (e.g., 100th purchase).
  • Re-engaging inactive customers.
  • Notifying customers about expiring plans or updates.

This approach is cost-effective and relies on channels like email, SMS, and WhatsApp. However, success depends on creating content that is engaging and innovative to maintain customer interest.