Earlier this year at VistaPrint we undertook research among UK small business owners to understand how they’re coping with ongoing economic instability - and the impact on their businesses’ health.

SMEs in the lurch

The dominant sentiment among UK SMEs is one of overwhelming uncertainty. Business owners simply don’t know what the coming months will bring, and this is hampering their ability to plan. Our research found that four in five (83%) UK SMEs are struggling to plan beyond 2023 - and almost half (45%) are unable to plan beyond H1.

This uncertainty continues when it comes to business owners’ views of their long-term business prospects. Almost two thirds (59%) believe there is a risk they will have to close their business as a result of the cost-of-living crisis. Understandably, this comes with a heavy personal toll to business owners themselves.

Almost two thirds (60%) say that their stress levels have increased in recent months due to the economic landscape - and 41% are working longer hours, at an average of 7 hours per week. All this means is that the coffee shop owner we buy our morning latte from is probably in serious need of a caffeine shot themselves.

However, despite the strong headwinds battering small businesses, it’s heartening to see that the majority remain positive, with 58% anticipating growth in the year ahead. However, this growth will not be easy to come by, meaning that it’s more important than ever that businesses market themselves effectively and stand out from the crowd.

Marketing - a key tenet of growth

During an economic downturn, it can seem sensible to rein in marketing spend and instead focus on business survival. Our own research highlights that one in five small business owners (20%) are already redirecting marketing budgets towards survival – with 57% of this group using it to pay the energy bills.

Yet, marketing is a key tenet of growth for small businesses. During previous recessions, including 1981-82 and 1974-75, companies that invested in advertising saw more growth than their competitors that shrunk their budgets. In 1981-82 that growth was 256%. Statistics also show that businesses that invested in marketing during the 2008 recession possessed 3.5 times more brand visibility than companies who did not. This brand visibility is critical to customer acquisition and growth.

It would be naive to ignore the economic and personal stresses small business owners are under, however the research shows that battening down the hatches is the wrong approach to take. On the contrary, now is the time for businesses to make sure they’re being seen – and they don’t have to invest wildly to make a huge impact.

Make the most of your marketing

Here are some of the key areas where small business owners should focus their efforts to make the most of their marketing budget:

• Create a strong and consistent visual identity

A clear, consistent visual identity really helps a small business stand out from the crowd and can help build brand affinity and trust. Working with a qualified creative to develop a unique look and feel for your brand touch points will always be a great investment. However, there are also ways that small businesses owners can create a professional look at a lower cost, e.g. using DIY design templates and free logo design tools such as VistaPrint’s Logomaker.

• Improve brand visibility and reputation through CSR

Corporate Social Responsibility (CSR) tends to be associated with big business – but  you don’t have to be a multinational to engage in CSR, and it’s a great way of developing your visibility and reputation within your local area. Supporting a local community initiative that aligns with your brand values will enable people to develop a deeper understanding of what you stand for. For example, why not donate some of your products or time to a local community NGO?

• Engage your customers through eye-catching video 

A recent Hubspot report named short-form video as the highest ROI format for social media. Indeed, 33% of marketers intend to invest in it over the coming year – and small business owners should follow suit. You don’t have to be a technical wizz to create great video content. Being time poor and technically challenged doesn’t have to stop you from creating professional video content. On the contrary, self-shot footage tends to generate high engagement due to its authenticity. VistaCreate provides a free video editor alongside social media templates that allow users to create engaging, brand building content with just a little time or financial investment.

• Create a dialogue with your customers/consumers

Quizzes, polls and games provide a great opportunity to engage with your customers, and can be created cheaply or even for free. Interatvie content allows you to push brand messages, whilst also gaining a deeper understanding of your customers. You can use data insights to develop new product or service offerings and inform ongoing marketing.

Small businesses are the backbone of the British economy, yet economic uncertainty is proving to be the biggest obstacle to their growth. Despite the circumstances though,small businesses are still optimistic of growth in the year ahead. Engaging in effective, cost efficient marketing will be key to achieving these ambitions.