Businesses that are at the edge of failure are not the ones that need to bring about changes. There can be articles on the web that says that business pivot is only for the organizations that are struggling in the market to sustain.
Industry experts say that having issues in a business should not be the only reason to give it a new direction and change its business plan. It is evident that the market changes with time, and it is important for businesses to adapt to the changes for sustenance.
Here are six ways that can help you pivot your business in the market.
Changing a business plan does not mean that it needs a complete turnover from its current stage. Rather, it can be a new idea to make some changes in your current business strategy. These changes are implemented to accelerate growth and change in the business. However, there are certain reasons that might drive you to pivot your business. These may include starting the business, business growth, change as per the economy, streamline the current business operations, or losing the interest of your target audience.
Suppose one of these reasons is why you need to pivot your business. Here are some of the ways this can be achieved.
Update the Pricing Model
There can be two scenarios here, either your prices are too low in the market, and it is not working out for you, really. On the other hand, if your prices are so high that you are barely making any transactions. This can make you feel stuck at a specific place. Thus you need to pivot your pricing model.
Deciding the business pricing strategy is one of the most important decisions that need to make being a small business owner. This is important as the prices you have set for your business impacts your cash flow, profit margin, target appeal, and even your competitive edge in the market. The pricing model is often developed at the time when you set your company. However, this is not the one that you will ever use for your business. Rather, this needs to be changed as per the needs. Some of the most popular pricing strategies include bundled that includes multiple goods or services at a low price. The second one is competitive, which is based on the prices charged by the competitors, discount offering low process for limited time periods, the economy in which low processes are set for a set of limited products, and some more.
Changes in the pricing model can work to the maximum if you effectively communicate your plans to the customers. It is also important to share the values you are adding to the product or the service.
Making Changes in the services or Products
The second-best approach to make changes in your business is to make changes in your products or services, or both at the same time. For this, you can add a new feature to the top product you are offering, add a new product or a service to the current offerings, remove a feature that is no longer required, or remove a product or a service that generates low revenue for your business.
The best way to implement these changes can be to take the feedback from your regular customers and know what they are expecting. They can also let you know what is missing in your business products and services that lags you behind from the others.
Changing your target audience
Before starting a new business, all you do is to see who are the people who will avail of your services or buy your products. This is one of the first and the key parts of creating your business plans. However, over time, you might be targeting the wrong customers for your business. Or, you need to focus on a different set of customers.
Changing the target audience can pivot your company from its current business model. Change in the audience might also require you to work on your business website, marketing platforms, the tone for your business marketing, as well as your packaging.
One of the most important reasons for pivoting your business is to shift to automation from the manual processing part. You might and should need to streamline your business processes in order to manage your email marketing, payroll, accounting, communication, and customer relationship management efforts.
This is a wise step for you to take as working with the traditional style of pen and paper or even using excel spreadsheets have become old and outdated ways. These are time consuming processes that also cause errors. Thus you need a set of advanced software applications to pivot your business.
Shifting sales to the online platform
The pandemic has shifted the entire market from the brick and mortar stores to online stores. It is, therefore, a necessity for businesses to take their sales online. It should also be considered that adopting automated tools is different from developing and business website and suing them for sales.
But it is a chance that is worth taking for some of the companies to boost their revenue. Here are a few tips to keep in mind while taking your business over the web.
- Ensure the security of your retail website.
- Make the shopping experience easy for your customers
- You need to bring about changes in your budget and the overall business plan, including your shipping costs.
The top reason for you to pivot your business is going entirely remote. It can be scary at the initial stage. However, this has become a necessity for the time and also have several benefits. Some of the benefits include higher engagement, low overhead costs, quick and convenient businesses processes, and a decrease in manual errors.
Apart from the reasons mentioned above, pivoting your business from time to time is a good practice. It will help you to stay stable as well as competitive in the market.
Source – Forbes