Wednesday, 20 January 2021

Pivot your business successfully

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How to pivot your business successfully

A lot of emphasis will be on business resilience in 2021. 

Most businesses have been disrupted and impacted by the COVID-19 pandemic and business owners and entrepreneurs are facing an uncertain time ahead. “Pivot” has become a buzz word since the coronavirus pandemic started. 

A pivot means changing the direction of a business when current products or services aren't meeting the needs of the market. The main goal of a pivot is to help a company improve revenue or survive in the market. 

The economic impact of what the world is experiencing is unprecedented but there are still opportunities for great businesses to come out of the worst times. Businesses that reacted quickest to the events of 2020, will find ways to survive and even thrive into 2021.  

If you are thinking of pivoting your business, Osidon has some useful tips. 

Know when to pivot 

Every business experiences difficulties on the road to success, but you have to know the difference between an obstacle and an impossibility. You should only consider pivoting when absolutely necessary. It should be the last resort when all other options have been exhausted. 

Consider pivoting if: 

  • Your business is progressing too slowly despite the amount of money and effort you’re putting into it
  • Your business is failing to overrule the competition
  • Your business has hit a plateau
  • Only one aspect of your business is succeeding and the rest are failing
  • There’s limited response from your target market
  • Your goals, vision, and values have changed 

Focus on your skills and competencies

In order to successfully pivot your business, rely on your strengths, core competencies and  the ability to produce satisfactory results. 

A pivot doesn’t have to mean a complete change in direction. It can mean tweaking parts of your business, such as adding an online shop, offering delivery, offering new products or services, setting up remote working, or accepting different types of payments. 

Step back and evaluate your mission, and make sure you put in extra time to ensure that your new vision is the right one for you.  

Once you’ve decided on your new direction, you need to implement the plan as soon as possible, to avoid wasting time, effort, and money on something that doesn’t work. 

Embrace digital solutions 

Like 2020, 2021 will be a year for doing business remotely. This means technology will be more important than ever, whether this means moving financial and IT services to the cloud or moving sales online so customers can shop from home.  

Taking the time to invest in the latest technology, that works for your business, will put you in a strong position for the coming year. 

Use your existing assets and resources 

Pivots don’t necessarily require a radical change in every case, it’s important to identify what aspects of your company can be kept and reused.  

You’ve spent time, energy, and money on building your business, you should be able to redirect your current resources towards your new goal. 

Listen to your customers 

The feedback you receive from customers is a good indicator of whether you should pivot or not. While occasional negative feedback is normal, constant criticism may require changes to be made. 

Be authentic and transparent about your efforts to serve your customers in the best possible way and let them know how they can support you.  

Loyal customers and clients are champions for your company so make sure you maintain a strong relationship with them. Find the best way to communicate and engage with your current customers and do so in creative ways.  

Explore possible collaborations 

The objective of collaboration can be new ideas, exploring synergies, and creating new business partnerships to help give you access to new customers, new products or new markets. 

Make an effort to connect with potential partners, such as a neighbouring business, a local chamber of commerce, an industry trade group, or even a Facebook group. 

Embrace the pivot 

Before you decide to take your company in a new direction, take the time to prepare. Also, take into account the opportunities for growth and expansion in your new path. 

There are many ways to pivot your business, make sure you know what you’re doing and that your new model can work.  

Also make sure everyone in your business is aware and on board with the pivot before you implement any major changes.  

Once you’ve committed to the pivot and made the changes, embrace the process. It is important to remember that great companies can be built in hard times. 

Osidon is the world's first digital accountant, specialising in accounting/tax/payroll support for small businesses and entrepreneurs.