Tough times might be on the horizon. Some economists put the likelihood of a recession as high as 61%. In such an environment, it's important to maximize your revenue potential by exploring every possible option to bring in cash and extend the reach of your small business.

Starting a podcast fits this strategy. Small businesses and startup founders have used this content to diversify their revenue streams. At the same time, they have also leveraged the opportunity to connect with new customers and expand their brand.

Small businesses and startup founders have used this content to diversify their revenue streams. At the same time, they have also leveraged the opportunity to connect with new customers and expand their brand.

This article will look at the reasons why a podcast might be a good fit for your small business. You'll also learn some details about the current state of the podcast industry, as well as some tips to get you started.

What is a business podcast?

Almost everyone is aware of podcasts in general. This downloadable carry-them-anywhere audio content has become a favored companion for commutes, workout sessions, road trips, and a host of other activities. Meanwhile, people have turned to podcasts to extend their knowledge on subjects as diverse as sports, true crime, cooking, culture, and pretty much anything you can imagine.

The format has also become a useful tool for businesses. Through a podcast, you can package information about your operation, your products and services, your industry, or even the details of running a successful business.

After all, you already have a particular expertise that lets you compete in your industry. A podcast provides an excellent way to leverage that knowledge to gain a wider audience.

At the same time, the looming possibility of a recession has made it an excellent time to consider adding a podcast to your offerings. It comes with a relatively low barrier of entry and can open the door to additional revenue.

Even if you see limited direct cash coming from the podcast itself, the audio content can still be a business boost. It can become a conduit for additional sales by connecting you to your target audience. You can find more clients and enrich your branding.

What's the current podcast landscape?

One estimate put the total number of current podcasts at more than 2 million. This has led to over 48 million podcast episodes. Meanwhile, this represents substantial growth in recent years. The number of podcasts has jumped nearly 4x over the past five years, when the number sat at just over 500,000.

How can you compete in such a crowded marketplace?

For one thing, the audience for podcasting is also growing. The increase in supply is happening because of a sharp rise in demand. For example, a survey conducted in 2006 showed that under one-fourth of adults (22%) knew what a podcast was. Now, that figure is approaching 80%.

Also, it's important to realize that you aren't actually competing with all 2 million podcasts. Most of those have nothing to do with your subject matter or your target audience. (It's doubtful that your business podcast will jump on the true crime trend, for instance.)

Think of it this way: your startup likely also entered a relatively crowded market. Any area with high demand will draw its share of competitors. Your goal is to provide a differentiated product that delivers value for your target customers.

Podcasts operate on the same principle. The same thing that sets your company apart can give you an edge in locating an audience for the content you want to produce.

Reasons for starting a podcast

As you consider the value of starting a podcast, it’s important to understand the possible upsides. Here are some of the benefits you can achieve with this strategy:

Gain alternative revenue streams

It may take some time to build an audience. However, a podcast can represent a cost-effective source of revenue. In general, an episode of around 10,000 downloads will lead to revenue between $500 and $900.

Enhance your brand

Often, direct revenue isn't the best way to judge the success of a business podcast. You might not reach profitability in terms of cash generated directly from the content. However, the endeavor can still create value.

Think about the podcast as an extension of your marketing efforts. For instance, one survey found that showcasing a product on a podcast can raise customers' intent to purchase by as much as 14%. These effects will increase awareness of your products and improve your overall brand.

Find new customers

Along with an improved overall brand, a podcast can directly connect you with new customers. The content lets you microtarget the people most likely to respond to your offerings. In this way, it becomes a new vector to reach out to people who might be interested in your products or services.

Establish yourself as a thought leader

A podcast can also raise your standing within your industry. Other players in your space will recognize your contribution. This will make it easier to find partnerships and potentially improve your recruiting efforts.

This reputation lift offers other benefits. Your team might start getting invited on other podcasts or get featured in the broader media. Your podcast provides a hub with which to interact with the outside world.

Build a community

Having a podcast can inspire a conversation around your company. People don't just exist as customers. They can become fans. The audio content can serve as the centerpiece for a broader community.

Engage stakeholders

Beyond the customers and the audience at large, people closely connected with your small business can receive a benefit from its existence. Your employees might find it fun and exciting to have their work showcased or participate in an episode. Meanwhile, your leadership team (including you) can raise their profiles.

Distribute information

Once you build an audience, your podcast becomes another way to disseminate information about your company. Product launches, upgrades, promotions — the content becomes a media outlet that you control.

How to get started with podcasting

Launching a podcast is relatively inexpensive. For a few hundred dollars, you can get the equipment needed to produce a professional-sounding recording. Meanwhile, the ongoing costs are relatively minor, assuming you don't expect to get too elaborate with your first foray into the market.

That said, to do a good job, you'll need to invest some intellectual capital. Providing an interesting and engaging product might require time and effort on your part.

Also, depending on the skill sets of the people you have on staff, you might need additional outside help, even if just on a part-time/contract basis. This support can include the services of an editor and/or a host.

You might also need someone to write scripts for the show, conduct interviews, find outside guests, and execute various other tasks contributing to the content. Many of these functions can be done by current staffers. But you need to budget the necessary time.

Here are some other steps you can take as you look to ramp up your podcast:

• Set goals: Going into the process, figure out what you want to accomplish. Create goals and work out KPIs with which to judge success.

• Define your audience: Consider who you want to reach with your podcast. This will help shape your creative decisions as you build out your content.

• Do a deep dive on podcasts you admire: Teach yourself how to structure a podcast. Start by breaking down how your favorite content achieves its success.

• Learn about the process: Beyond becoming an active admirer of the podcast form, take a more formal approach to your education. Soak up as much technical knowledge as possible, so you have the foundation necessary to produce a winning product.

• Get expert support: As much as you can learn on your own, it always helps to have professional guidance. There are many companies out there that can help you create and manage your podcast.

Should your small business or startup start a podcast?

With economic uncertainty on the horizon, one way to hedge your risk of a recession is to seek alternative revenue streams. Starting a podcast is one possible way to do that. It can also bolster your online presence and help generate new leads.

However, this endeavor comes with a time commitment that could become a distraction if not handled correctly. Use the information provided here to decide whether it's worth it for you to start a podcast for your small business or startup.