Is your company’s performance declining with every passing day? At some point in time, every business hits a downturn where profits start turning into losses. In such situations, all entrepreneurs can think of is to shut the company to prevent more losses. It might sound practical, but it’s not a wise approach. After all, there are countless ways to breathe a new life into a failing venture. Haven’t you heard of pivoting the business model?
A pivot is more like changing the company’s direction when you realize current product offerings don’t satisfy the market demands. The goal is to make your company survive and get it back in the competition. Most people think they’ll have to start from scratch to pivot, but that’s not true. It might involve a large-scale change, but the core values, goals, mission, and vision would remain consistent. You have to conduct extensive research and adjust to market opportunities.
Likewise, talk to customers and see what they expect from the brands. It would help you develop innovative ideas that can be a game-changer for your business. However, if you are having second thoughts over pivoting, have a look below. Here is a step-by-step guide to having a successful Business advice.
1. Conduct Thorough Research
The concept of pivoting is still fresh in the corporate landscape. Most entrepreneurs ask for cost cuts from vendors, increase prices, and implement strategies but pivoting is more than this. Do you have any idea how to pivot business models and develop something compelling? When looking for an opportunity to redefine the business model, you must look beyond the current market. Entrepreneurs have to find gaps in consumer demand and supply to identify new opportunities.
For that, you can conduct a market analysis to explore the dynamics of the business world. First, learn about the emerging trends in the industry you want to penetrate. You have to assess the technological disruptions, political events, and economic conditions since all these factors affect businesses one way or the other. Second, tap into social media to stay on top of trends and news. It would give you an insight into consumer’s changing tastes and preferences.
2. Understand Your Target Market
Before putting your ideas into practice, understand your target market. You have to be sure that your product caters to their problem and provides a solution. In most cases, companies fail to capture leads because they target the wrong people. You might have incredible SaaS software, but selling to B2C customers won’t bring any business. Instead, you have to pivot the business to sell software to B2B companies to boost sales.
Once you know who your customers are, talk to them. You can send out customer surveys with open-ended questions to determine what people have to say about your business. Likewise, you can engage with customers on social forums. It would provide you with first-hand accounts that give their opinion on your pivoting strategies. It will also help you cover new pain points to facilitate the customers in the best possible way.
3. Analyze Your Core Competencies
Most entrepreneurs want to take a drastic departure from their current industry, but what about the expertise? Someone running a retail clothing company won’t know anything about the shoe manufacturing business. Therefore, you have to analyze your core competencies before calling shots. If you have incredible selling skills that attract customers, stick to the retail industry. Similarly, if you are good at negotiating, feel free to stay in the supply chain sector,
Remember, you already have to navigate a lot of things. Thus, jumping on a line of business you don’t know would be the last thing you want. You have to work with what you know the best and explore opportunities to reposition or repurpose. Otherwise, you can work on a new business model within the same industry to maintain your core competencies in the market.
4. Keep an Eye on Competitors
As you enter a new market, learn about the key players in that industry. Learn about their strengths and understand how they leverage them to win customers. Likewise, analyze their weak points and try to capitalize on them. For instance, if they are missing out on an audience demographic, you can take that opportunity. Similarly, monitor their digital marketing campaigns and see where their strategy is lagging. Maybe, they could have poor website navigation, extended loading times, or irresponsive web pages.
You have to learn from their mistakes and create a robust business plan to penetrate the market. However, if you already know your competitors well enough, don’t hesitate to take another look. Understand everything they have done to succeed in the last few months and determine how it turned out for their business. You can even adapt those changes to your business and make your pivot a success.
5. Open the Lines of Communication
Once you start implementing the pivot plan, make sure to keep the audience informed. You can use your social media pages to communicate about the change to employees and customers. In addition, you can give them a glimpse of the transition model to create some hype. You can even ask for feedback throughout to ensure your customers are on the same page. It would redefine your brand’s image, a good place to share reasons why you pivoted.
You can tell a story, share successes, and explain what the new model offers the customers. Remember, transparency goes a long way. If you keep customers informed throughout, pivot won’t come as a shock. Lastly, alter your brand message and email campaigns to reflect your new strategy. You also have to update the website with the necessary information, products, and pricing.
Undeniably, seeing the business fall apart can be distressing, but it doesn’t mean you have to shut the doors. A business pivot can change the company’s direction and promises survival. You have to develop a new model, capitalize on market opportunities, and keep up with customers. Likewise, you must stick to your core competencies and understand the target market to make this pivot a success.