Changing direction may be just what your business needs to get it back on track.
Sometimes the road forward has a giant fork in it. In times of crisis, the best way through it could be to find a different way entirely.
If the pandemic has forced you to rethink your vision for your business, take comfort in the fact that many famous companies realized their true potential only after abandoning their original business models. In many cases, it took at least a couple of tries to get it right: HP, Twitter, Instagram, and Starbucks are examples of successful pivots.
But why “pivot?” Silicon Valley’s entrepreneur culture is responsible for popularizing the term “pivot,” which is just a more interesting way of saying a change in strategy. It is a reimagining of purpose, or a breaking with the status quo to shift focus in a fundamental way.
Some pivots are engineered with a calculating eye on the market, and some happen almost accidentally. When a crisis makes changing the way you conduct business necessary, here are some guidelines to be certain that the next big move is in the right direction.
Start by asking the right questions
Pivots are not easy and should not be undertaken lightly. You will be deconstructing your business model down to its studs to rebuild stronger and better. Your survival will depend on how well you understand your market, your customers, and your own ability to change. Ask yourself:
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What value can you provide without changing? Is it enough to sustain your business? Will the demand still be there, or is there something else you can offer that is more appropriate?
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Example: If you have an office cleaning business, can you pivot to residential cleaning?
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How do you deliver your products or services? Can you change your delivery model to fit the current circumstances? What makes the most sense, operationally?
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Example: If you own a retail store, can you make home deliveries? How much of your ordering process can you move online?
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Who are your target customers? Has your customer base changed? Do you need to adjust your marketing and sales operations to better reach them? Have your customers’ needs changed?
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Example: If you relied on foot traffic for customers, are you equipped to do some digital marketing and outreach?
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Be honest and thorough. Now is the time to evaluate key metrics and examine your assets to determine how they can be repurposed to continue to reinforce your brand. While you will be making decisions for the immediate future, a course correction could lead to longer-term opportunities.
Remember the 5 Cs of change
If change makes sense for your business, here is a convenient way to think about what a successful pivot will require, and some examples pulled from the current crisis.
Creativity: How can your company meet the demands of these extraordinary circumstances?
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Hotels began offering days rates to people as an alternative to people whose work-from-home arrangements were lacking
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Commercial airlines pivoted to cargo-only flights
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Perfume makers and distilleries began producing hand sanitizer
Capabilities: What strengths can you offer, and what assets can you deploy?
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Retailers and restauranteurs perfected curbside order delivery
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Previously brick-and-mortar businesses expanded their digital presence and added online ordering
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Companies used the business slowdown to offer their employees training in new skills
Collaboration: Who could you partner with to achieve your new business goals?
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Grocery stores became “dark” fulfillment centers
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Restaurants outsourced their delivery services
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Retailers expanded their offerings to offer “one-stop” shopping locations
Community: How can your business contribute to the good of your community during this crisis?
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Large entertainment venues were transformed into testing centers and hospitals
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Garment makers became personal protective equipment (PPE) manufacturers for frontline workers
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Automobile manufacturers began making ventilators
Communication: How can you be sure your message reaches your target customers?
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Companies increased direct correspondence with their customers through targeted emails
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Businesses that never used social media before the pandemic started actively posting and creating social media campaigns
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Companies went into crisis communications mode, using the standard set by Johnson & Johnson and communicating early, often, and directly
A moment-sensitive pivot can be as drastic as a complete shutdown and reimagining of your core business purpose, or relatively minor, like a temporary switch to making PPE. Those pivots are valuable for the goodwill and positive PR they generate. Look at Mattel Toys, for example; they released a line of Fisher-Price action figures that feature delivery drivers, grocery store workers, and healthcare professionals to honor the heroes of the pandemic.
Is pivoting in your company’s future?
If the pandemic hit when you had already been questioning some aspects of your business model, it is a perfect time to regroup and make a fresh start. You don’t have to do it alone.
At Franco Blueprint, we can provide help in making this critical decision. We provide guidance to assess your business’s financial needs and recommend practical next steps. It is our business to assist small business owners and help them secure their livelihoods during times of crisis and beyond.