A while back I posted about the fact that many of today's top companies were started -- or significantly grown -- during some very difficult economic times. For example, Disney started during the post-war recession of 1923-24, Hewlett-Packard began during the Great Depression, and Microsoft was founded during the oil crisis in the mid-1970s. The point? That just because times are tough doesn't mean that you as a businessperson should run and hide from the multitude of opportunities that await you. A recent article in the New Yorker provides further support to this point of view.

In this article, author James Surowiecki points out that research showed that firms that kept ad spending stable -- or increased it -- during the recession of 1921-22 had better sales performance than companies that did not. Again, in the recession of 1981-82, companies that increased or at least maintained their advertising grew significantly in the three years that followed, while companies that cut advertising budgets experienced only slight increases in sales in the three years that followed. Finally, research shows that companies that increased their acquisition, R&D, and ad budgets during the recession of 1990-91 remained market leaders -- or became serious challengers -- while those that cut these budgets became market losers.

I'm not saying that you should keep spending like there's no tomorrow -- there's no question that budgets need to be tightened in the current economic environment. But what I am saying is that you should be VERY selective in what you cut. Avoid cutting expenses that will help you build or maintain your sales -- especially as the current recession runs its course. Do ramp up your spending for things that will increase your sales. You want to have momentum behind you as the economy improves. And the economy will improve -- it's just a matter of time.