Breaking-Ad advertisement on street level 23May
Breaking-Ad’s guide to a recession-proof brand

Breaking-Ad is a first ridesharing based advertisement company in Pakistan, based at Lahore. If you haven’t been to our blog before be sure to check out know more insights about us here. Being an advertising agency, we keep our heads down to every little change in market trends.

There are generally a few obvious factors contributing to an economic recession and there is one, every after every 15-20 years roughly. But the recession caused by a global emergency is considered a black swan – an event that rarely occurs. Such as world wars in the past, plagues and famines, and very recently- the coronavirus. The outbreak led to a global lockdown and the closure of corporations at large is already resulting in horrible economic situations. Feel free to check, which industries we think are at the hit list of coronavirus the most, here.

While studying the patterns of recessions form past, our analysts noticed that it roughly takes 6X more time to recover economically as compared to the actual time duration of the closure.

Here are 4 proven steps to future proof your company from the next market recession.

1. Take control

Even during hard times like a recession there is always something you can still take control of and make it right. It is natural to freak out especially as a new company under such pressure but the first step is to believe that all is not lost. Instead of sitting clueless about your next move, gather all your moral and financial resources and brainstorm the flowchart of various possibilities with your colleagues, subordinates, and stakeholders. If possible, keep some operations active throughout the recession as long as they are adding more into resources and not eating from it instead.

2. Get rid of toxic assets:

There would always be assets acquired in your company whose purchasing market would disappear right after the recession is over. In that case you would be left a lot of unnecessary payables and a dead end. Your brand needs to get rid of those fading assets as soon as possible.

3. Direct Cash:

As the situation is only worsening with time it is important to covert at least 20-25% of your capital in the form of currency. Since the investments are unpredictable in these times. It would be unwise to put all eggs in one bucket.

4. Form mergers

If you are a brand that has some magnitude in the overall market, you may form conditional mergers with small cash cows who are just unable to sustain and are not under any debt otherwise. There are always some businesses that do fine in good times and even better in hard times like this. Click here to check out which industries are booming due to coronavirus.

These 4 techniques would help you secure your brand upfront. Although it may need to be improvised several times depending upon your business model. If all else seems to fail, however how hard it may seem but you would have to downsize or close your brand altogether.

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