THE ART OF PIVOTING
A pivot can best be defined as a substantive change in a current business model. The change may be in the product or service currently provided or in the marketing methods or even a change in the target market; a company that is selling a service may change to manufacturing and selling a product. In other words there are literally hundreds of possible pivots.
The term “pivoting” is not new, but it has now been brought to the forefront. The COVID-19 crisis has made it necessary for many small business owners to shift their business models quickly in order to survive. In any crisis there is always a silver lining, in my opinion; some small businesses should have started the pivoting process a long time ago. Many owners have been doing the same thing, barely surviving with their current business model but afraid to let go and try something new. Pivoting is closely tied in with innovation which is something that, I believe, is the foundation of small business growth.
One of my favorite stories on pivoting belongs to Starbucks, the coffee shop that seems to be on every corner. Starbucks did not start out selling brewed coffee; they started in 1971 selling espresso makers and coffee beans.
A pivot should occur when:
- The business isn’t financially viable(barely surviving is not being viable)
- Your target market didn’t respond the way you anticipated. (after allowing the necessary time to get your message out)
- You lost your enthusiasm and drive and want to do something different.
Before you select a pivot direction, answer the following:
- Value Proposition: What value do you deliver with your new product or service?
- Value networks: How do you deliver and monetize your product or service?
- Target customers: Who receives and benefits from what you provide?
In today’s environment, many small businesses have no choice but to pivot for survival. That requires growing a new business which involves preparation, forecasting, having the necessary cash flow , plus completing all the elements found in a Vision Based Business Plan.
There are approximately 30 million unique small businesses in America, which means that there is no single correct way to pivot. Reach out for support when considering a pivot and work on your own uniqueness.
BizQuack is always ready to listen, discuss, and support.
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