Bottom Line Tip #1: Use your balance sheet as a weapon

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Recessions, like droughts and famines in the wild, cull the herd. Companies with strong balance sheets, access to cash, or the ability to borrow or raise cash, can use this as a weapon to bludgeon the competition. If you can afford it, now is a good time to spend strategically to build marketshare and mindshare, upgrade talent, and/or reward loyal customers.

Building Marketshare & Mindshare
Start a little bit of an arms race... if you can afford to win. Making some investments in your brand, spending a little more on advertising, sponsoring some events, and just generally getting the word out to new customers can return double dividends. When you plan new market investments, look at how you can target them on the customers of your weaker competitors. If you can build mindshare with these customer now you may be able to pull them away from your competitors, leaving them less well prepared for the recovery. If nothing else, you'll increase your mindshare with these prospects and when the economy does recover and they have more to spend, they'll think of you.

Upgrading Talent
As mentioned in our tip on Upgrading Talent, a recession is a good time to hire. It's also a good time to force your less-well prepared competitors to down-grade talent. The best people are always employed, often with your competition. Identify your "dream teams" and go after them. If you offer them greener pastures -- which doesn't necessarily mean more money in a recession, it can mean more stability or greater job satisfaction -- you'll get a double bonus: upgrading your onboard talent while taking weapons out of the arsenals of your competitors.

Rewarding Loyalty
Your customers are facing the same pressures you are and may be looking to cut costs or get better contract terms. Be proactive. Identify benefits you can offer to your customers that don't cost you anything or at least not much and reach out to them before they reach out to you. This way you'll distinguish yourself as a vendor that's in touch with their needs and you'll set the tone and terms of the discussion. If you wait for them to come to you first, you risk that they'll either come telling you they've already switched to a competitor or they'll ask for for things you may not want to grant.