Could Your Business Benefit From Pivoting?
Switching tactics during the pandemic could be an opportunity for your business to thrive and survive.
The pandemic has hit businesses hard across the nation, with 61,472 limited companies folding between the beginning of March and mid-April alone. This took place alongside a mass reduction in firms being concurrently registered with Companies House. In comparison to the same period of 2019, this represents a 70% increase in firms going out of business according to the International Association of Bookkeepers. There’s no question that 2020 is an incredibly difficult year for the majority of companies. For those looking to survive, it’s time to diversify and develop additional revenue streams to keep you afloat during these challenging times.
What is Pivoting?
In the business world, pivoting is the idea that you will drastically shift to a new strategy after identifying a new market or prospect worth exploring. Even though the pandemic may feel like the wrong time to make any sudden changes in direction, it can actually be this type of radical overhaul of your company that can help you to survive. If your primary revenue streams have been impacted substantially by the pandemic, then this might be the ideal time for you to pivot. In fact, even if you’ve only been marginally hit by the effects of Covid-19, then it could be worth exploring avenues as a precautionary measure in case your business is impacted in the future.
Get Your Company In Position
Before you consider placing your brand in front of a new audience, it’s essential that you’re able to convey a positive image of your company. Investing in ISO 9001 certification can present more effective marketing opportunities and ensures that customers will have more faith in the product or service you have to offer. This quality management standard will also help you to stay focused on customer satisfaction whilst ensuring that you retain control over your business processes.
Conducting Baseline Research
Assessing demand is essential during the pandemic, which is why your market research steps should not be rushed through. Conduct extensive investigations into what your customers are looking for, which of their demands are not being met at the moment, and how that demand may change in the future depending on the pandemic and the government’s response to the crisis.
As part of your research, you should also determine how much investment you’ll need to support your business pivoting and consider how much you’re willing to risk by entering a brand-new market. For example, companies offering online sales are likely to do well both now and following the pandemic as customer behaviour has switched to this convenient type of shopping. It’s important that you’re able to predict future buying habits well, so as to forecast the likely success of your new venture.
If you need to create prototypes to convince investors, or to showcase to potential customers, then try to get these rolled out as quickly as possible. Finally, you’ll be able to decide on your product or service’s position in the market so you can add positive revenue streams to your business model as soon as possible.
Pivoting can be risky and might seem daunting, but there are plenty of companies out there who are already making the most of a bad situation and have successfully switched tactics for 2020. Will you join them?