Facing a Tough Economic Downturn? Decide Not to Participate in It.
Welcome to the Why to Wow newsletter which is all about inspiring the hearts and minds of people worldwide with the Power of Differentiation. In the Why to Wow newsletter, I share my experiences over the last 40+ years helping leaders differentiate their brands and products. I hope it will inspire you to discover and share your own brand’s uniqueness with the world.
I began my business amid a terrible recession. Unemployment was in the double digits, as was inflation. Interest rates for a new home were over 15%. I woke up every morning with no momentum and worked all day until I fell asleep to build some semblance of progress. That was back in the early 1980s.
The economy recovered, and then, over the years, numerous recessions followed. Just when I felt we were on an incredible path, the “Great Recession” hit us. Banks were failing, and it seemed like the sky was falling. My competitors were closing shop, and all around, there was a feeling of despair.
Chuck Surack, founder of Sweetwater Music, the world’s largest online music retailer, was also caught up in that. When he was on my firm’s podcast, Difference Talks, we spoke about his approach to that recession. He told me that his employees, friends, and customers were paralyzed with the impending fear of what was about to happen. Sensing this, Chuck decided to gather his employees together to make a statement.
Many CEOs would have shared that these were uncharted waters, that tough decisions needed to be made, and sacrifices would be required. As his employees assembled, I imagine they were bracing for the worst. Maybe there would be a layoff or a reduction in hours or pay. But Chuck surprised them all.
On our podcast, he shared, “I told my people that we would not participate in the recession. We would continue to work hard, sell musical equipment, and grow. Period.” He said there was silence after he finished his statement; then maybe a little shock; then, slowly…hope and confidence. Sweetwater grew through the worst recession in history as others, including their competitors, wavered. You can hear Chuck sharing this pivotal moment here.
This inspiring approach to adversity fueled Chuck’s response when the COVID-19 pandemic crippled the world. Again, he and the Sweetwater team stayed on course during the downturn, choosing resilience over retreat. They continued to push forward, ultimately gaining market share as rivals shut their doors.
The most recent Difference Talks episode with Dr. Rebecca Homkes further proves that times of uncertainty are times of opportunity. Her book, Survive, Rest, Thrive, is a guide for growing while others are retreating. Check below for the link to her podcast, a must-listen to conquer the chaos!
Difference-maker #1: Don't buy in just because someone predicts doom.
Some want to prove that the economy is failing for a reason; they may want to profit from it or lower expectations. Don’t give in. Use all your resources to overcome adversity. Let someone el se obsess about tariffs, war, politics, and technology.
Difference-maker #2: Nothing is inspiring about giving up.
Great leaders show their people that they believe and will fight to succeed. The easiest thing to do is join the losing crowd. Let others go down that path, but give your team every chance to choose a different approach that seeks out opportunities.
Personal note: When the COVID-19 pandemic hit and non-essential businesses were mandated to work from home, many companies in our field were announcing layoffs, reducing salaries, bracing for failure, and waiting for governmental assistance. We held a company-wide meeting at my firm on the last day before we began working from home. I could see fear in the eyes of our team. I shared my vision: we were committed to no layoffs or reduced compensation. We planned to maintain, even grow, throughout the shutdown. However, I also clearly shared that the entire company had to rally our resources to offer clients every reason to keep working with us. We committed to bringing them new ideas and even offered to extend their payment terms—anything that would help them help our people. It worked. Just like Chuck at Sweetwater, we chose not to participate in the downturn created by the pandemic—we prevailed. This experience became part of our company’s lore and is remembered with pride today.
Hearing about bad economic news? Consider not participating. Here’s the Difference Talks podcast featuring Chuck and the amazing Sweetwater story.
Podcasts I Recommend
Here are two great podcasts I recommend if you’re looking for inspiring business insights.
Thanks for Coming Back is a heart-centered leadership podcast that feels like a conversation over coffee—real talk about growing, leading, and bouncing back. Hosted by Dr. Latasha Nelson, the show blends warmth and wisdom with stories from diverse guests who’ve faced challenges, found clarity, and embraced the leader within.
Everything is Personal is a top 20 Alternative Health and Wellness podcast. Listen to some of the most interesting people in the world—from entertainment, sports, medicine, and science—engage in intimate conversations about their most personal experiences and obstacles they had to overcome to get where they are.