How to Prepare Your Balloon Decor Business for a Recession

Many companies begin looking for ways to cut costs in the face of an economic downturn concerned that they will need more cash on hand. If the business is in a low cash position this makes sense, but if the business is healthy, you should see a recession as an opportunity to grow. Balloon Decor businesses are no different and in the face of negative feeling headlines and businesses closing there is great opportunity to improve and take market share.

Recessions for balloon decor businesses vary substantially based on the typical client and how their behavior changes. A consumer spending recession will hit harder for a business that focuses on lower end private parties. A business spending recession causes a more substantial drop in revenue when businesses are the primary client target. Understand that target clients vary, conditions city to city may vary, and certainly country to country may have completely different experiences.

I’ll point out that as of this writing in 2022 Asia and the EU are in recession and North America is being somewhat spared so far. Based on the track record at the US Federal Reserve the US will be pushed into a recession but 9 out of the lat 10 times the Federal Reserve took the action we’re seeing now the economy had fully recovered to the pre-tightening growth trend within 24 months. So we’re not expecting a lasting recession or permanent damage to the US economy.

Here are my team’s 9 recommendations for how to adjust your Balloon Decor business in the face of a recession.

One mistake that many small businesses make during times of economic downturn is cutting their marketing budget. Consider that if all of your competitors are downsizing their advertising budgets, but you are learning how to fine-tune your marketing efforts, your company could very well see increases in revenue and gain a larger market share. This is precisely the reason you should not cut your budget. 

When the competition slashes their advertising efforts, consumers see their marketing less and less, allowing them more time to see yours. So, in a way, maintaining the same marketing budget or increasing it, even just a little, will bring your balloon business to the forefront. 

The key during a recession is to focus on the marketing that is bringing your business positive return on investment. If it takes $50 of marketing spend to get a new order that generates $100 in profit, that is a clear “positive ROI” because at the end of the day you made $50. If $50 in marketing spend brings an order that generates a loss, then it’s a negative ROI marketing effort.

ACTION ITEM:

Create a list of your individual marketing activities, their cost, and the number of sales per area

Find the average revenue per order

Find the average profit per order

Combine these to understand which marketing efforts are the most profitable

Spend MORE on the areas that are profitable

Since we specialize in Balloon Decor digital marketing we see the following as profitable consistently:

• Business Website
• Local SEO
• Google Ads (using the strategy we manage)
• Facebook Ads (using the strategy we manage)

You might choose to pull back on Website SEO if your competition pulls back on the same, or you might choose to push forward hard on SEO during a downturn to gain bigger market share.

A recession is one of the best times to begin offering a line of lower-budget balloon decorations that are easy to build. This is an excellent way to attract new customers with varying budgets, and you may even find that offering several new pricing tiers will attract that many more. 

Consumers prefer when companies give them services at many different price points, so perhaps they can use an easier, more affordable balloon design for a child’s birthday party and opt for one of your larger packages for a different event. 

The key is to listen to your target customers (you know who your specific target customers are, right)?

If private party clients consistently ask for something at $250 instead of $500, it may be time to shift with your customers.

Few things are more valuable in life than learning new skills. The truth is that even people who have been making balloon designs for years probably have at least one area that needs improvement. Let’s say you have difficulty making sculptures or balloon arches without a stand. Rather than sit idle and wait for customers, use every bit of free time to build on what you already know. 

At the very least, practice makes perfect, and maybe you’ll end up creating designs in less time with fewer mistakes. 

Share your practice on social media. Find ways to combine what you’re practicing with what you already do, and what your target customers will love.

Entire new businesses or trends may come from your effort.

Most people who own small businesses know that few things are as crucial as building a good network because of the resources it provides you as an owner, and because of the referrals. 

Regardless if you are just launching your balloon business or have something well established, seek the people and businesses that are serving your target customers with different services. Notice this is different from “join the chamber” or “be active in your community”. This is targeted networking based on a shared customer

There are lots of ways to add connections to your network. However, one of the most effective ways to connect with other business owners and meet the people you need in your circle is by joining business networking or referral groups. Many of those who join these groups find everything from mentors to business referrals and partnership opportunities. 

But, be picky on the groups you consider joining.

While customer retention is always crucial, this is especially true during a recession. Many businesses find that most of their profit comes from existing clients. And the best part about this is that the cost of retaining a client is much cheaper than trying to attract new ones. 

You may notice that consumers are not as likely to try unfamiliar products or services when the economy is turbulent. 

This is the time to fire up the:

• Email marketing
• Text marketing
• Phone calls to your best clients
• Meetings with your best referrers

ACTION ITEMS:

1. Make a list of the people or businesses who are your best referral sources
2. Make a list of the clients you have that perfectly match your target customers
3. Now put time on your calendar to call them
   

Social media in Balloon Decor is a double edged sword. The more time you spend on social media the less time you’re probably spending on other sales and marketing efforts that have better return on investment. But, spending time on social media can generate sales.

Part of the trouble is that your social media statistics are bloated by other balloon decor pros. This is why how-to videos do so well, they are one of the most liked by other balloon decor businesses.

So, focus on a schedule and be on message to your target customers. Building a solid following on social media is vital for driving more customers to your website. One they are on your website they can convert to leads or sales.

Some will interact via direct message with you, but the higher value clients typically visit the business website during their sales journey.

However, it’s also important to note that building an online presence is usually best done through exclusive content. In other words, it’s not enough to just post content; you should ensure that it’s only for the clients who follow you on social media. Through this process, you’ll encourage a strong bond between your brand and customers, thus driving up conversion rates by encouraging them to share the content with their family and friends.

Every business owner understands the importance of their Google Business listing when it comes to local SEO. Still, many people may not realize that Google Reviews are one of the most crucial tools for people looking at the Google Maps portion of search results. 

For example, let’s say two balloon decor businesses appear on the local maps insert side-by-side. One of these businesses has 7 reviews, and the other has 42 reviews, both with 4.5+ star ratings. Research shows that the business with 42 reviews will get the majority of the clicks and phone calls. For this reason, it’s crucial that you push to publish at least 40 reviews, all 4.5 stars and above. 

We’ve found that at the 40-review mark, this places most balloon decor businesses well ahead of other local competition. The only exception with this is if you operate a balloon decor business in a large metropolitan area such as Chicago, LA, Miami, or NYC. In this case, after you’ve reached 40 reviews, you’ll need to conduct a thorough competitive analysis to understand how to gain more market share. 

Hence, during a recession, it’s vital to push for more positive reviews and keep them coming because, ultimately, this is what will land you more clients and help your balloon business stand out as more trustworthy and likely to offer a better experience.

Content marketing is one of the most affordable and effective ways to market your balloon decor business. These strategies involve creating content that’s relevant and informative to engage your audience. But rather than trying to sell to them, you are providing them with value through helpful content. Over time, it increases the chance that many of these people will become loyal clients. 

This is another area where you can spend too much time and treasure whether you’re doing it yourself or hiring a marketing agency or writer to do it for you.

We need to first focus on ROI compared to other marketing and sales strategies. If Content Marketing presents a solid next investment it’s time to create a content plan that is based on SEO research and your target customers.

The content next needs to be created and sliced up so you can leverage it on social media, email newsletters, text messages, and other marketing channels.

ACTION ITEM:

• Do you have a strategy for new content that spans the website, social, and email/text?
• Do you have a trusted person or company that knows balloon decor, who you can reach out to for a consultation?

Closing Thoughts

While some business owners may think that less is more during a recession, the opposite is true. And the best part is that with the right strategy and attitude, your balloon decor business will not only survive but it will thrive long after the recession is over. 

Often the hard parts of a business journey are the parts that result in the most growth and reward as an owner.