MPL General Counsel Corner – Marketing Spend is the Easy Choice to Cut in a Downturn
As the year rapidly comes to a close, many are in the planning stages for 2023. Most, if not all, of the economic prognosticators that I talk with or listen to expect a pull-back in conditions next year. In my conversations with clients, I ask about their plans over the next 12 months. Most are prepping for a downturn, but don’t see tangible signs of it yet. Specifically, if the downturn happens, many mention the usual cost cutting methods of reductions in workforce and marketing as two of the first spending cuts to consider.
I know that this recommendation may seem counterintuitive, but the one thing that a business should not do in a downturn is cut its marketing efforts. If your business is healthy and steady, it may be an opportunity for you to take market share. If you don’t believe me, check out some of the articles below from experts:
- Don’t Cut Your Marketing Budget in a Recession (hbr.org)
- When A Recession Comes, Don’t Stop Advertising (forbes.com)
- How to Market in a Downturn (hbr.org)
- How to Market Your Business During a Recession (uschamber.com)
Here are a few other things that may be of interest:
- Final “Beneficial Ownership” Rule’s Impact Explained (nfib.com)
- Pennsylvania’s Small Business Advantage Grant Program – NFIB
- Town Hall: An Economic Update with Anirban Basu – Stambaugh Ness (10/24 4-5pm)
- The Road to Retirement Security for Small Business Owners & Their Employees (Inc.com) (10/26 2pm)
Helpful Resource Pages
- Knowledge Center (eisneramper.com)
- Trout CPA Blog | Tax & Business-Related Topics
- Resources – Stambaugh Ness
- News & Analysis | Littler Mendelson P.C.
- Insights, Analysis & Perspectives for Your Business | RKL LLP (rklcpa.com)
- NFIB Research: Data and Trends Affecting Small Business Owners | NFIB
- The Tax Warrior Chronicles (taxwarriors.com)
As always, please don’t hesitate to email myself (firstname.lastname@example.org), Andy Miller (email@example.com), Christian Miller (firstname.lastname@example.org), Erik Spurlin (email@example.com), Brad Leber (firstname.lastname@example.org) or anyone in our office with questions or comments.