This month there was good news from our neighbours Germany and France who have officially come out of recession. Both economies, the largest in the Euro Currency Zone, grew by 0.3% between April and June, bringing an end to their year-long battles with recession.

This can only be an indication of what’s to come for the rest of us. As Business Secretary Lord Mandelson said: “Different economies will show different patterns of behaviour. But the key point is all these economies rely on each other; 55 to 56% of our trade is with the rest of Europe. So when [they are] recovering that is good news for our manufacturers and our exports here.”

So this is a really key time for businesses. They must be ready to hit the road running once things turn around which means investing now and reaping the rewards later. It’s a tough decision to make when revenues and profits are down, however it is a proven fact that businesses that invest in times of recession will benefit long term.

Over the next few weeks I’m going to look at the different areas organisations and businesses should be focusing on to ensure they are in the best possible position as economies begin to turn around.

So first up is Branding

During a recession consumers and businesses become more aware of who we are buying from and doing business with. Why, because we want value, we want quality and ultimately the best we can afford. A strong consistent brand that portrays this will win out each time. And once the recession is over that brand will continue to flourish and reap the rewards as it will be remembered as “getting us through the hard times”.

A brand must convey confidence – employees should be encouraged to promote their brands with confidence, whenever possible. Customers who are persistently provided with the quality and service they expect from a brand will remain loyal even through tough times. Businesses that are aware of this will not let their brand diminish and those who are clever will invest that little bit extra to ensure they are building a loyal customer base.

Risk factors – during a recession shareholders, staff and customers become more risk averse. Mitigate this risk by strengthening your brand, and avoid exposing your business at a time of recovery which is much more costly and much less certain of success.

Add value to your business – a profitable and powerful brand will more likely come out of a recession even stronger while the weaker brands will fall by the way-side. The value of your business will be perceived by the value of your brand.

• Build and strengthen your brand by building trust, do what you say and make sure what you say is what your customers want to hear.
• Differentiate yourself by identifying even one thing that makes you stand out and special, customers will value this.
• If you have a strong brand use it to launch new products and services to stimulate demand.

Think long-term – recessions will come and go but your brand should be around forever.  Short term cuts will result in short term relief, but long term pain!