A weak economy can be beneficial for a market leader like Floor & Decor. While near-term earnings suffer, the downturn forces weaker competitors without structural advantages into bankruptcy. This ultimately allows the dominant player to capture significantly more market share during the eventual recovery.

While competitors retrench during recessions, Amphenol leverages its strong balance sheet to accelerate M&A. This counter-cyclical strategy allows it to acquire strategic assets at attractive valuations, ensuring it emerges from downturns with increased market share and strength.

Launching during a downturn can be advantageous. With less competition, a compelling story can gain significant PR traction. Larroudé's founders leveraged the 2020 pandemic when other brands were silent, mirroring the retail boom that followed the 2008 crisis.

Lovesack's CEO argues the current downturn in the home category is worse than the 2008 recession. The massive "pull-forward" effect of home spending during the pandemic created an unprecedented peak, making the subsequent trough deeper and more challenging to navigate than the 2008 housing-led crash.

Inspired by Panera Bread's recession strategy, Faherty saw the 2020 pandemic as a unique chance for retail expansion. While others retreated, they aggressively signed 40 long-term leases, capitalizing on low rents and favorable terms.

While competitors fired staff and cut advertising during recessions, Clayton Homes adopted the motto, "The country is in a recession and we have elected not to participate." By maintaining investment and playing offense, they captured significant market share and were positioned for recovery.

Founder Rose Blumpkin's bias for action meant responding to challenges with immediate, unconventional solutions. When shotguns weren't selling during the Depression, she rented them. When her store burned down, she held a massive "fire sale" the very next day amid the wreckage.

During the 2008 financial crisis, Backroads didn't just cut costs. They re-tooled the company to amplify their strengths, adding a third leader and a second van to trips. This premium shift improved their value proposition and led to higher profit margins post-recession, a counterintuitive move in a downturn.

Schwab recognized that newer tire stores were unfairly burdened by higher rent-to-sales ratios. He implemented a system where every store, new or old, paid the same percentage of their sales as rent. This effectively subsidized new locations in their crucial early years, fostering sustainable growth.