How to win market share when your competitors retreat.
Marketing

How Local Businesses Can Win Market Share While Competitors Retreat

By Tom Feary

Recessions can be scary—no question about it.

But they also come with a hidden opportunity that too many business owners overlook:

When your competitors pull back, you can move forward.

I’ve watched this happen in real time. During the Dot-Com bust, my team doubled down on lead generation while other media sellers froze. In 2008, we cut operational fat but stayed aggressive on sales and marketing—and clawed back a company bleeding seven figures a year. And during COVID, while agency owners panicked, we launched virtual events and marketing audits that fueled years of growth.

It’s not magic. It’s not luck. It’s just this:

When everyone else retreats, your voice gets louder.

This post is about how local and regional businesses can use that moment to grab attention, win trust, and emerge from a downturn with more market share than they had going in.


Editor’s Note:
This post is part of our Recession-Proofing Your Small Business series. If you’re joining us, start with Post 1, Post 2, Post 3, and Post 4 to get the whole picture.


Silence Is an Invitation—for Someone Else to Step In

Here’s what happens in most local markets during a recession:

  • Competitors stop advertising
  • Emails go quiet
  • Social feeds go stale
  • Sponsorships disappear
  • Websites sit untouched

That vacuum? That’s your opportunity.

When you stay visible, you stand out more.

You don’t have to outspend anyone—you just have to outshow.

Simple ways to stay visible in a retreating market:

  • Keep posting consistently on social media—especially with helpful content
  • Update your Google Business Profile regularly
  • Run lean, local Google or Facebook ads—even $10/day goes a long way right now
  • Send a monthly customer email (don’t overthink it—just stay in touch)
  • Keep signage, local listings, and directories current and consistent

Even if your competitors were ahead of you, they lose ground when they go quiet.

Visibility becomes your edge.


Get Closer to the Community

Tight economies bring people back to their roots.

When national brands retreat or cut service, local businesses have a real chance to step up.

Now’s the time to show you’re invested in your community—not just located in it.

Ways to engage locally (without spending much):

  • Partner with other small businesses for promotions or bundles
  • Support a school, cause, or nonprofit that aligns with your values
  • Be present at events—set up a booth, hand out swag, offer free consults or services
  • Sponsor a giveaway or contest that drives local engagement
  • Highlight customer stories or local success stories in your content

These things may not feel like “sales” at first—but they build trust, brand affinity, and top-of-mind awareness.

And when wallets tighten, trust often wins over price.


Dominate Local Search (Because Others Won’t)

This one’s big—and still wildly underused by many local businesses.Your competitors may pause their marketing, but Google won’t stop ranking websites.

And right now, a clean, optimized local presence can be your secret weapon.

Focus on these three things:

  1. Google Business Profile:
    • Keep your hours, services, and contact info updated
    • Post weekly updates or offers
    • Ask happy customers for reviews (consistently!)
  2. Local Listings:
    • Ensure consistency across all directories—mismatched addresses or phone numbers can hurt visibility
    • Use tools like BrightLocal or Yext (or a trusted vendor) to keep them clean
  3. Your Website:
    • Fast, mobile-friendly, clear services, clear contact paths
    • Localized content: mention neighborhoods, city names, landmarks—this helps SEO
    • Blog posts or landing pages tied to local search queries (e.g. “best family dentist in Chattanooga”)

If you can be found while others disappear, you win business by default.


Turn Up the Human Touch

Recessions can feel cold and uncertain to customers.

One of the most underrated advantages of small businesses? You can show up personally.

  • Send a handwritten thank-you note
  • Call your best customers just to check in
  • Feature a team member or customer story in your content
  • Reply to every review (even the bad ones—with grace)
  • Show your face in videos or reels—it builds trust faster than text ever will

People don’t trust logos. They trust people.

And in a downturn, personal connection becomes your competitive edge.


Play Offense, Not Defense

I’ve said it before in this series: recessions reward businesses that don’t freeze.

It’s not about being reckless—it’s about being proactive when others are reactive.

  • Run a special offer or bundle that addresses current customer concerns
  • Reposition your services around value or outcomes (not just features)
  • Create urgency—limited-time offers, capacity caps, or bonus incentives
  • Audit your competitor’s messaging. Are they still active? If not, what can you fill in?

If you’re in an industry like dental, home services, or wellness, this is even more powerful.

Your customers still need you—they just need a reason to act now, not later.


Final Thought

Your competitors are making choices right now—some smart, some scared.

And every time they go quiet, delay, or pull back… they’re creating space for you to move forward.

You don’t need to go big.

You just need to show up. Consistently. Clearly. Confidently.

Because when this economy turns—and it will—the businesses that stayed visible will already be ahead.

Keep showing up. And you’ll come out stronger than you went in.


Up Next:

In the next post, I’ll shift gears and talk about a sector that’s often misunderstood in recessions: dentistry. We’ll look at how dental and medical practices can not only survive—but grow—during tough economic times.

 

Published: 9th May 2025

Share this page

Get Marketing Tips

Receive our latest posts and updates. We promise not to crush your inbox.