How to Pivot your business?
What does pivoting mean in business?
When a business pivots, it changes some aspects of its core products or services. Businesses might pivot to meet customer demand better, shift their target audience to boost sales or combine both.
Making a pivot is a strategic move that you can take to ensure that your business remains viable and profitable. Typically, it's also done as a long-term strategy instead of changes made for a relatively short time.
How do you know if pivoting is right for your business?
First, ask yourself which changes you want to continue for another six to 12 months. If your current business is your dream, it may make sense to continue with short-term changes to get you through your current challenges. On the other hand, if you think your business model is not viable in the long term, you’ll have to pivot.
Review your business plan and strategy and consider the following for your pivot strategy:
Which products and services make your business offer, and whether they're still desirable and relevant for your customers
If there's a way to modify your business short-term so that it generates sufficient income now and has future profitability — or if more significant, strategic changes are needed
What kinds of changes to staffing would you need to make to achieve profitability
If you have the cash on hand needed to make the necessary changes, and if not, whether you could obtain it
Common pivot strategies for small businesses
Remember that while the changes you make are intended to be long-term, it's not necessary to change everything. Instead, you will likely need to find ways to adjust your products or services, operations, and marketing to make it work.
Here are some examples:
Change how you offer products: If there's still demand for your product, consider your delivery method.
Refocus your target audience: Who will most likely need and use your offerings now? How has your customer base changed?
Be patient and flexible: Striking the right balance between your business and your future business may take some time. So be flexible and ask for feedback from customers and staff. This will help you get to the core of overcoming any challenges.
Use a variety of marketing, incredibly inexpensive, and effective digital channels: Make sure your website reflects any business pivots and your social media pages. Use your digital channels to announce exciting new products or services through your pivot strategy. And be aware that you may need to update or change your marketing messages and information to adapt to new audiences, products, or services.
Talk to other small businesses for ideas and support: For some companies, this may mean co-offering products and services to create more attractive packages for your pivoted business.
Find the right funder or funding opportunities to keep your business moving forward: If your business is feeling the impact of the COVID-19 pandemic, find out what federal, state, or local grants and low-interest business loans are available and apply. Talk to your commercial banker and see what options are available to your business. Even if you don't use any funding, having it open if needed can make all the difference in a successful pivot.
