As someone who makes a living with their creativity, you might be feeling extra anxious about the current state of the economy. The S&P 500 index is already in a bear market, the Federal Reserve has increased interest rates, and consumer prices have hit their highest levels in decades. And what’s not to panic about when social media stocks are expected to lose $42 billion in market value due to a decline in advertising revenue?
With everything pointing to a recession, creators, like other small-business owners, may feel unprepared to face an economic downturn. After all, you're probably new to the creator economy, and the upcoming recession will be your first.
But as a creator, you shouldn’t fret too much. The same innate creativity and adaptability that have kept you afloat so far will give you an edge in recession-proofing your business.
Here are four reasons you are well-positioned to turn an economic downturn into a growth opportunity.
1. Creators Are Used to Dealing With Unpredictable Situations
As a creator, you are no stranger to uncertainty. The digital world is ever-changing, so you must constantly adapt your strategies to stay ahead of the curve. You are used to making quick decisions in the face of change, and you know how to be resourceful with what you have.
You are also used to dealing with algorithm changes on social media platforms. While these changes can be frustrating, they have also taught you to be nimble and pivot your strategies when necessary. This type of agility will be essential in a recession, when businesses must quickly adapt their plans to changing consumer behaviors.
The creativity you use to produce content will also be useful in determining the best digital marketing techniques. As a creator, you’re not new to thinking outside the box to promote your content.
This type of thinking will be invaluable in a recession, when traditional marketing methods may no longer be as effective. You will be well-positioned to explore options like customer relationship management (CRM) marketing, SMS marketing, and other digital marketing tools.
2. Creator Businesses Can Survive Without High Overhead Costs
The beauty of being a creator is that you can run your business from anywhere in the world. This makes it easier to weather an economic downturn since you won’t be tied down by the same overhead costs as traditional businesses. You don’t need to pay for office space, retail space, or expensive equipment.
The digital world has democratized content creation, which means anyone can be a creator. With the pandemic catalyzing content creation, the creator economy has expanded, and your persona is the currency. As long as you're focusing on your personal brand and creating quality content, you will be able to find an audience for your work.
And since the nature of your work enables you to outsource for more affordable rates, you can run your business with a leaner budget than traditional businesses. You can save a significant amount of money by working with freelancers rather than hiring an in-house team.
For example, you can use different platforms to find affordable freelancers to help with digital marketing, design, and content creation. You can also use platforms like Patreon to monetize your content and build a loyal following of supporters who are willing to pay for your work.
Undoubtedly, a decline in consumer purchasing power could push people to avoid paid content. However, you can offset the losses by expanding your reach to a wider audience. You can also embrace trending monetization tools like non-fungible tokens (NFTs).
3. You Have a Built-In Community and Support
As a creator, you have spent time building a community of supporters who are invested in your work. This is a valuable asset in a recession, when many businesses will be looking for new ways to connect with consumers.
Your community can serve as a focus group, providing feedback on your content and offerings. The insight you get from your supporters will be invaluable in helping you fine-tune your content and ensure that you are meeting their needs. The community's feedback will also be an eye-opener in helping you identify the best marketing tools and techniques for your needs.
And since you have a built-in community, you won’t need to spend as much on advertising and marketing. Your supporters will help promote your content and get the word out about your business.
In addition to your personal community, you also have the support of other creators and businesses in the creator economy. This is a tight-knit community in which everyone is working toward similar goals.
You can collaborate with other creators to produce joint content or bundles of products and services. You can also join forces to crowdsource funds or promote one another’s work. These relationships will be valuable in a recession, when businesses need to rely on one another to thrive.
4. Creators Are Great at Bouncing Back After Failing
No one is perfect, and everyone makes mistakes. The key is to learn from your mistakes and use them as opportunities to improve your business.
Bouncing back is something that small-business owners, especially creators, are great at. They know how to take negative feedback and use it to better themselves or their work. This resilient spirit and mindset will help you keep a healthy outlook on the situation.
In a recession, it’s important to have this mindset since most businesses will be facing challenges. You need to take the setbacks in stride and continue working toward your goals.
And if your business happens to fail, you can always start again. The digital age has made launching a business with minimal risk easier. So if you need to start over, you can do so quickly and affordably.
Recession-Proof Your Business With Norby
Although creators aren't immune to the challenges that come with a recession, they are uniquely positioned to weather the storm and even come out stronger. If you are a small-business owner, now is the time to embrace your inner creator and start using a platform like Norby to grow your business. Norby will help you leverage powerful tools like landing page marketing, text message marketing, emailing software, contact management software, and more.
The platform is best suited to help you overcome a recession as it gives you the flexibility to switch your strategies at a moment’s notice based on cross-platform data. Join Norby today to access everything you need to recession-proof your business.
