I had lunch this week with an old friend, a fellow entrepreneur I have known for more than two decades. He has always run a successful business.
Something felt off.
When I asked how things were going, he said, “David, I don’t know what it is, but something is different. People everywhere seem to be cutting back and my business is down 37% this year. I’ve never seen anything like this.”
He survived downturns before
This is someone who has grown or held steady through every downturn I can remember.
He made it through the dot com crash without missing a beat. His company operates in real estate, yet he thrived during the 2008 housing collapse. He even scaled aggressively during the pandemic, while many businesses failed.
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His business always seemed to defy the odds.
But this time was different and he could not explain why.
The problem wasn’t the economy
Yes, inflation is squeezing budgets. Many businesses are feeling it.
But that alone is not the full story. Some companies are still growing despite the same economic pressure.
As we talked it through, the real issue became clear.
He had stopped nurturing his network.
Business follows attention
Somewhere along the way, he got comfortable. He stayed busy. He assumed relationships would hold on their own.
Over time, he fell off the radar with clients, partners and vendors.
His clients did not leave because of the price. In many cases, they were paying the same or more. They left because another vendor made them feel seen.
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Those competitors stayed in touch. They shared useful information. They made introductions. They offered value beyond the core service.
My friend assumed that because people had always worked with him, they always would.
That is a dangerous assumption.
Relationships work like dating
Think about it like dating. You have to assume that someone else is always willing to put in more effort than you are.
If you take someone for granted long enough, you already know how that story ends.
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Business works the same way.
When times get tight, clients start looking for partners who feel more engaged. The same is true for referral partners. It even applies to vendors you are paying.
Vendors have options too
That may sound counterintuitive, but it is real.
I experienced this firsthand when my largest competitor approached one of my service providers with a budget more than 200% larger than mine. They turned it down because of our relationship.
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If they had not, the damage could have been severe. That vendor knew my business inside and out. They understood my industry. They would have been running a much larger campaign for a direct competitor.
That moment reinforced a simple truth.
Every relationship in your network matters.
Systems Prevent Complacency
I understand how easy it is to lose sight of this. Running a business is chaotic. You get buried in day to day demands.
I have made that mistake more than once.
That is why systems matter.
You need regular touchpoints with the people in your network. Not sales pitches. Real value. Information. Resources. Connections.
People want to feel valued. They want to know they matter beyond the invoice.
Grow While Others Pull Back
At the same time, you need to keep expanding your network.
Many entrepreneurs retreat during downturns. That creates opportunity for those who stay visible and proactive.
That is why some businesses grow in tough economies while others stall.
How to Nurture and Expand Your Network
Nurturing your existing network does not require anything complicated.
Pick up the phone. Send an email. Stop by when it makes sense. Look for ways to help outside your core service.
Growing your network takes more intention, but it is still straightforward.
Be active on social media. Share useful content. Reach out directly. Use public relations and email marketing. Do not ignore in-person networking. It cuts through noise fast.
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Organizations like BNI and Chambers of Commerce exist for this reason. Mastermind groups work for the same reason.
If you are in Tampa Bay, TBBW events are another strong option. Trade groups like Associated Builders and Contractors, Florida Trucking Association and the National Supermarket Association of Florida offer direct access to decision makers.
The Bottom Line
An economic downturn does not guarantee a decline in business. But complacency almost does.
To thrive right now, entrepreneurs have to stay proactive. That means nurturing existing relationships and continuously expanding the network around them.
I am doubling down on that effort.
You can do the same, or you can lose ground to competitors who will not hesitate to show up.
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