Lessons from 8 Businesses That Grew During a Recession

In mid-2020, the business world witnessed a harsh culling. One in five small businesses were forced to close permanently, unable to adapt to the recession caused by the pandemic. Yet, even in that seemingly devastating period, some businesses not only survived but also achieved remarkable growth.

They didn't have a magic wand. They simply changed faster, observed their customers more closely, and dared to do what they hadn't done before. If you're feeling lost amidst the recession, the following 8 businesses will serve as mirrors for you to reflect upon and find your own path.

Why Do Some Businesses Grow During a Recession?

A recession doesn't eliminate everything; it categorizes businesses. Surviving companies often share a common trait: they read early signals of customer change and pivot before it's too late. While many others waited for things to return to normal, they accepted that the new normal would be different from the past.

The first lesson is simple: growth during a crisis isn't a matter of luck. It's the result of continuously asking, "What do my customers need today?" and having the courage to act on the answer, even if it goes against the original plan.

Introducing New Products: A Lesson from GIR

GIR, short for “Get It Right,” was originally known for its premium silicone kitchenware. When Covid-19 broke out, they realized they possessed the material and production line capable of serving a much more urgent need: reusable face masks. Without wasting time, GIR developed easy-to-clean silicone masks with filters. The product launched just as demand for protective gear surged, and orders poured in like a flood.

What makes GIR truly commendable is that they didn't stop after their initial success. They listened to customer feedback, improved the mask design, and then launched a mask case to maintain hygiene when carrying them outside. This is how a business leverages its core competencies to create multiple product lines with high synergy.

Lessons learned from GIR:

• Develop products that solve immediate, real-world problems.
• Choose products based on existing capabilities, don't jump into unfamiliar fields.
• Use customer feedback for continuous improvement.
• Find complementary products to add value to the main product.

If you have untapped resources, ask yourself: what new product can I launch in the next four weeks?

Transitioning to the Virtual Space: Lessons from Gaelynn Lea and Sky Candy

The pandemic shut down doors for the arts, entertainment, and retail industries. But some individuals found a way through technology to maintain revenue streams and connections.

Violinist Gaelynn Lea had to cancel her tour due to the coronavirus. Instead of waiting, she launched a series of “Quarantine Concerts” every Sunday afternoon, receiving donations from audiences via Paypal, Venmo, and CashApp. An independent artist can still make a living during a recession by bringing performances directly into the homes of their audience.

Sky Candy, an aerial arts studio in Austin, Texas, transitioned its fitness and flexibility classes online. This allowed students to maintain their form and the brand to remain consistently visible. When the studio reopened with limited capacity, they continued to offer online classes, events, and remote performances. The key was prominently displaying their name and logo in online programs so new customers could recognize the brand.

If you offer a service that requires in-person interaction, consider what a virtual version of that service might look like. Even if the initial revenue is small, it's a way to keep the brand alive and open up new opportunities.

Shifting Target Customers: A Lesson from Joyride Coffee

Many businesses get stuck because they rely too heavily on their existing customer base. Joyride Coffee used to sell high-quality coffee to offices. When companies closed down, this channel became almost paralyzed. Founder David Belanich quickly realized: if he didn't find new buyers, everything would stop.

Joyride shifted to direct-to-consumer sales, delivering freshly roasted coffee, selected teas, and cafe-quality cold brew right to people's homes. They also launched Joyride Boxed Cold Brew to create a unique offering. This was a bold move, changing both the product and the target audience.

When the old market no longer operates in the old way, sticking to the same target customers can be the biggest risk.

If you're considering changing your target audience, don't forget to review your entire brand story. Do the current name, packaging, and messaging still fit the new group? If not, be prepared to adjust so they understand what you do and why you do it.

Adjusting Operations: Lessons from Whole Foods and Kroger

Customer behavior has changed. People are hesitant to dine in restaurants, shop online more, and when they do visit stores, they want the quickest possible experience to minimize infection risk. Large supermarket chains like Whole Foods and Kroger quickly transformed some stores into distribution centers, temporary warehouses, and online order fulfillment hubs.

This change allowed them to serve customers more effectively and maintain service continuity. This built significant trust at a time when many other brands were consistently disappointing customers with slow deliveries or stock shortages.

Small businesses don't need to turn their entire store into a warehouse. Start with touchpoints that make customers feel safe: dedicated pickup areas, contactless delivery processes, or prioritizing online order fulfillment. Small operational adjustments can create a good enough experience to bring customers back.

Changing Multiple Things Simultaneously: The Cheese Shop and Revolutionary Concord

Don't assume a single change will save your business. For many, a combination of adjustments is necessary to create a significant impact.

The Cheese Shop, a gourmet cheese store, expanded its offerings to include groceries, sandwiches, and prepared meals. They used social media to showcase dishes and daily promotions. Customers could order for delivery or curbside pickup. They also launched a “Victory Cheese” box to support American cheese artisans. A brand that seemed to be solely focused on a niche product transformed into a diverse culinary destination.

Revolutionary Concord, a gift shop, moved to selling via Facebook Live, showcasing items to customers and taking orders over the phone. They implemented contactless pickup and home delivery services. Upon reopening, the store limited entry to 8 customers, enforced new sanitation protocols, and designated specific hours from 8:30 AM to 10 AM for appointments.

The common thread for both these businesses is that they didn't justify their actions by saying, "We've always done it this way." They accepted that multiple things could change simultaneously, as long as they could still serve their customers.

Where Can You Start?

Crises don't wait for anyone to be fully prepared. The successful businesses in this article weren't prophets; they simply made quick decisions and dared to try. You can too.

Write down three columns: first, what problems are your customers facing right now; second, to what extent can your current capabilities solve them; third, what distribution channels can you utilize this week. From there, choose the smallest yet most feasible action, and begin.

Don't wait for a "normal" version to return. If everything goes back to the way it was, the market might no longer have a place for you. Change while you still have the strength and learn from those who are doing better than you.

In your opinion, are there any businesses that should stand still and wait for better times instead of rushing to adapt? Where are the limits of change? Please leave your thoughts below.