Why not investing is a dumb idea
Way back, I worked for a successful manufacturing business that hit a downturn due to a softening of the market. They cut all marketing, stopped recruitment and training, and halted all business planning.
Fast forward to the end of the recession and guess what… No leads in the pipeline, no talent in the business and no strategy. Funny that.
Whilst I understand that there is a need to ‘cut your cloth’ when business is tough, trimming away the wrong investments is potentially catastrophic.
I am seeing and hearing the same now. Marketing spend is being halted, recruitment on-hold or frozen, training shelved, and planning paused. It feels like a safe move for many, conserve cash and wait for better days. But this short-term survival instinct can and will create long-term problems.
When the market rebounds, these businesses may well find themselves with no leads, no talent, and no plan.
So why does this happen? Fear and cashflow pressures play a role. Owners see sales slowing and feel they must retreat to survive. But in reality, pausing these activities doesn’t just save money, it stalls momentum. And momentum is exactly what SMEs need when growth opportunities return.
You cannot survive by buying fewer paperclips (and other expenditure) – you have to invest wisely in growth.
Here are three areas you should keep investing in, even during a downturn:
Marketing - Leads take time to nurture. If you stop marketing now, your pipeline will run dry just when you need it the most. Instead of cutting marketing altogether, get smarter: focus on content that builds authority, strengthen your digital presence, and maintain consistent visibility with customers. Review your customer touch-points and implement areas to improve. Even small, regular efforts pay off when the market recovers
Recruitment and training - Downturns often free up strong candidates who wouldn’t normally be on the market. By continuing to recruit, you can secure talent your competitors may miss. Likewise, training your existing team now boosts skills, loyalty, and productivity. A stronger, more capable workforce ensures you’re ready to scale when demand returns
Planning - Quiet periods are ideal for strategic reflection. Use the time to review your operations, refine your offer, and set clear growth goals. Businesses that prepare during the slowdown hit the ground running faster than those scrambling to restart
This isn’t about investing more. It’s about investing in the things that matter the most for your future.
I remember a prospective client we had, who had spent £4k on a shiny new MacBook that he didn’t need and then couldn’t justify investing on the correct marketing he needed for growth (rolls eyes).
Downturns don’t last forever. SMEs that treat them as opportunities; to market smarter, build stronger teams, and plan with purpose, emerge fitter and more competitive.
When the proverbial phone starts ringing again, will you be ready to capitalise or be taking time to get into gear and catch up?
What is your experience of making investment decisions when the outlook is less certain? What approach do you take?