Editor’s note: This article was originally published in December 2012 and was updated in September 2026 to reflect what I’ve learned since then.
Toward the end of 2012, my business hit a wall.
Within two months, I lost six social media management clients and roughly 40 percent of my revenue. Strella Social Media was only a few years old, and I didn’t have enough history behind me to know whether I was experiencing a temporary downturn or watching the beginning of the end.
I considered taking out a loan. I thought about giving up my office. I worried about whether I would have to let people go. For the first time since starting the company, I had to seriously consider the possibility that it might not work.
When I originally wrote about that experience, I was still in it. I tried to make sense of what was happening by focusing on what I could do next: follow up more, generate new business, watch expenses, stay visible, keep moving.
I understand why I did that. Action gave me somewhere to put the fear.
Looking back now, I think the harder part was accepting how little control I actually had.
When the Numbers Become Personal
Revenue is a number until it starts changing what you think is possible.
Losing 40 percent of mine didn't just affect a spreadsheet. It changed the decisions I thought I could make. It made expenses that had seemed reasonable a few months earlier feel risky. It made me question whether I had grown too quickly and whether I had mistaken a period of momentum for stability.
There was also the responsibility I felt for the people working with me. By then, the business was no longer something that affected only me. Every financial decision seemed to carry more weight because someone else could feel the consequences.
That part of business ownership hasn't disappeared with experience.
The circumstances are different now, but there are still periods when revenue changes, clients leave, expenses increase, or something I thought was predictable suddenly isn't. I have more history to draw from today, which helps. What I don't have is immunity from uncertainty.
I appreciate hearing your experience - and what helped you to navigate the difficult time. I am glad things have turned around for you as well.
Elizabeth,
Thank you for taking the time to read and respond. The thing I take away from this experience is that we have to continue to work at running a business. It's not as simple as clocking in/out as it is working for another person. It's a constant battle to stay afloat, but one that reaps many rewards for those who are willing to work hard.
Glad to hear things are turning around. Hope they stay that way. Thank you for sharing the experience; great advice. In the middle a downturn, it's hard to see the light at the end of the tunnel and know what to correct. But after you've ridden out the wave, it's a good idea to take stock of what worked and didn't.
The good news... You are in the business of helping people solve these very problems. Businesses who embrace and master internet marketing and social media have a huge advantage for riding out the storm and lessening its impact. Businesses who are stuck in the past, only focusing on traditional biz wisdom are finding it harder and harder to recover. They will eventually snap.
Back in my architecture days (pre-internet), these waves were predictably tied to the economy. I rode several as a small biz owner and learned some valuable lessons. These are still valid, but internet marketing makes them easier & cheaper to address. Wish I'd had it then.
1) Diversify your client list: Many small businesses focus on a handful of "big" clients. They may make your payroll and look good on the client list, but losing one leaves a gaping hole in your business. Clients will come and go. Don't give any one or two the power to shut your doors. Back in the day, building client relationships took much more physical time. Given only so many hours in a day, you had focus attention on the biggest and best prospects.
Relationships are still key, but social media and online marketing turn networking upside down. Things like audio, video and written content let you reach people [literally billions] and relate wherever, whenever.
2) Keep it simple: Today we call it "bootstrapping." Be prudent about the "trappings" of traditional business: Office, equipment, cars, staff, etc. Locking into these things without good reason is dangerous. Now, before investing in any of these, I ask; "How, exactly, is this going to improve my bottom line?" I'm amazed at how little I really need and how location-independent my business can be. The old notions of what a business "should look like" are out the window.
3) Don't go it alone: Build a small network of external partners who complement your work. Don't just think of them as contractors and make sure everyone brings something to the table for mutual benefit, even if only loose affiliations.
4)Keep it flexible: #2 above says it all!! Again, business owners who embrace online have the ability to quickly and inexpensively turn-on, refine and deliver new products and services.
5)Market, market, market and market some more: #2, 3, and 4 above, are spot on.
Many businesses fall into the cycle of look for work, do the work, rinse and repeat. They see marketing as a chore, focusing on it only when absolutely necessary. When they do market, it does more harm than good and annoys customers (Oh, here comes XYZ, Co again. They must be low on work). Inbound marketing and social media strategies can help break this cycle for ANY kind of business willing to embrace them.
The sound principles of running a small biz remain pretty constant. But the internet gives you new power, allowing marketing to fuel your biz engine while you focus on your work (and occasionally sleep!). These are interesting (but fun) times.
Marshall,
I very much enjoyed reading your response. All of these tactics are spot-on, but I most identify with #1, #3 and #5. We have a variety of clients, which makes it much easier to transition if one decides to leave. I also enjoy the different industries and types of products/services that we have an opportunity to familiarize ourselves with.
Small business owners have a great opportunity in the internet age - one that can have a profound effect on business success (or failure). It's embracing these opportunities with the right mindset that will make it work!
Thanks for chiming in!
I love reading this article whenever I am struggling in my own business. These are very wise words. It is hard to always see the light at the end of the tunnel, but we really do grow in these times are well.