The past year has completely thrown many businesses and changed the world in how they operate; this brought about a change in many companies that weren’t expected and forced the majority to change how they worked. Whether you are Jeff Bezos or a one-person army, we all need to understand why we must be able to pivot in business. Read on to learn more about the five reasons shifting in the industry is better than standing still.
Competition is fierce
We have all had an idea that seemed original and unique that no one could have come up with. Still, there is always the possibility that a company with much more resources and capital could come along and develop the same product or service as you, only better. In this scenario, you have two choices; you can wait it out and try to push through the noise to bring your idea to the fore with blood, sweat, tears, and a whole lot of luck. On the other hand, you can try and do something entirely different, which will surprisingly have less risk as you haven’t got a giant offering the same but better service!
There is only one winner
Suppose your business offers multiple different services or products, but only one is doing well, whereas the others are doing nothing or barely moving. In that case, it probably means that your focus as a company should change. The more you allow the other services or products to sit and stew the more resource you must put in, be it labor or capital.
The change itself may not be drastic, or it may well be radical, but it is essential to focus on the revenue generators. Once you move your attention to what works well, your company can benefit by boosting productivity, efficiency, and revenue.
The landscape has changed
Landscape change is something that only recently happened massively. Covid made a significant impact on the business landscape and left many businesses high and dry. Bricks and mortar businesses had with no footfall, the catering industry fell to its knees, and aviation came to a standstill. The epidemic made many companies start to look at other ways that they can generate revenue. A pub in Ireland installed a beer pump in a van and delivered pints of beer; restaurants started to sell dish ingredient kits with the recipe for the customers to follow. This brought to light the necessity of having a plan B, having something you can do to generate revenue when the primary source of income stops. Without intervention, there is a high risk of needing to take out more loans or even closing down entirely!
The Marketplace is bare
Before you start the business, you probably carried out some level of customer research. It doesn’t matter how much research you do; just because someone you spoke to 2 years ago said they would pay for your service doesn’t mean that they would now. When you first launch the business and get a somewhat lukewarm reception, it can be tough to build the momentum to generate more excitement for your business. The last thing that you need is to flog a dead horse. Sometimes it is better off to sit back, re-evaluate the Marketplace, and sit in it to understand where your business needs to go. The sooner that you have this intervention, the better.
Blow the roof off
This is one aspect that isn’t a wrong reason to pivot your business. Every once in a while, your business will hit the ceiling. By this, I mean that the product or service that you are offering is doing all that it can and therefore won’t bring in any additional revenue than it already is. Sure, you can sit happily and let that continue to roll on, OR you can carry out a minor pivot and bring in some more services or products to make some more, therefore blowing off the roof! Business is all about growth; if it is time to implement a slight change, don’t be afraid to take action.
How to pivot well
If any of these scenarios have come about or have decided that you want the business to pivot for other reasons, you must shift to have the best outcome. One of the most critical aspects of shifting is doing it as soon as you can. The earlier you do it, the better, less revenue is wasted, you expend less labor, less time is spent on getting the business to take action and change.
You also don’t need to wipe the board clean and start entirely from scratch! Reflect on the business and identify the different aspects that can be salvaged and tweaked slightly, and reused once you have a plan in place. There has been enough effort to put in to let that all go to waste.
Another point is to ensure that your pivot strategy allows growth opportunities. If you haven’t thought about 1-2 years down the line, you may well come across the same pain points and roadblocks that you have faced already. Do your market research and listen to your customers; make sure that they believe in what you are providing for the price you are offering.
To pivot or not to pivot?
Ultimately, the choice is entirely your own, as is your business. There will always be risks associated with running a business, no matter what size the company is. Just be sure that any decision you make has been adequately thought through and that a plan is in place. If there is a problem in the Marketplace that you believe you can fill, do it; be sure to do your due diligence and keep yourself on the right track.