How to Pivot Your Business
If I could label the theme of the past two months, at least for small businesses, it would be this: how to pivot.
Our first pivot was dramatic and unexpected. The nation shut down and businesses everywhere shut their doors. That was out of our control.
For some businesses, the choice to pivot from brick and mortar storefronts to online products and services was the only realistic solution. Others moved into adjacent and temporary product lines—clothing designers, t-shirt companies, and other textile companies started making masks.
Other businesses did not (and do not) have an obvious next step. They are very good at what they do and there is no longer a market for that competency (and may not be one for the foreseeable future). As they work on figuring out what’s next, the initial pivot is from an external focus to one that prioritizes customer retention and increased attention to the business of their business—planning.
But now, as states, local regions, and businesses begin to reopen, it is time to pivot once more. And navigating this pivot means answering some challenging questions.
Is it Time For Me to Pivot?
I was recently on a video call for the St. Louis region, State of St. Louis Business: Weekly Call with Local Leaders. It was there that I was able to further articulate some of my thoughts around this theme of transitioning—or pivoting—business in this time of crisis.
I don’t think everyone can pivot. Nor do I think all businesses will survive this crisis. I do believe that the same questions that new, startup businesses need to answer are the ones existing businesses must address when deciding whether their next move will postpone the inevitable, or truly reposition them for future success.
As we move into reopening and reimagining our businesses, there are three things we must ask in order to determine if, when, and how to pivot.
What new problems are there to solve? Or can I solve existing problems in a new way?
Am I in a position to solve them?
Will anyone pay me to solve them?
It always starts with understanding what problem you are solving and for whom. Ultimately, the customer will tell you whether it is a problem worth solving and one that they will pay you (a sufficient amount, consistently) to solve.
There are lots of problems to solve. The ones that persist—the seemingly intractable ones—often have no payor. For established businesses looking to move into new markets, or for ways to serve their existing market in new ways, the revenue model is critical. It’s not just “can we do it?” but, “should we do it?” What will it take? What’s the reward? How can I test key assumptions to make sure I have a good sense of what to expect before investing time and money into making the shift?
It’s also important to distinguish between a shift that makes sense in the short term, versus a long-term realignment of company vision, strategy, and execution. Sailmakers shifting to making masks and face shields is a short term way to use existing resources (people, inventory, and equipment) to provide real, immediate value.
It is unlikely, however, that future mask sales will ever be able to replace sail making revenue or that the company will have the resources to retool its manufacturing operations to move entirely out of the sailing industry into the PPE vertical. If sailboat sales decline and owners forgo repairs, the sailmaker has few choices. Then again, if during this time they find a partner and build new relationships in the PPE market, they may be able to transition into a whole new line of business—the ultimate pivot.
New Solutions in a Time of Crisis
I have seen many great examples of businesses reimagining their key service or product in the midst of COVID-19, both in St. Louis and around the country.
In the tech industry, it is common to pivot, even on a normal day, so it stands to reason that we are seeing (and will continue to see) great examples of this come out of that space.
A Seattle company is one example. Business events, trade shows, and conferences use their technology to connect with attendees before and during the event. With all gatherings being postponed or canceled, however, they faced the possibility of losing all of their business overnight.
Instead, they chose to pivot. They saw the impending shift from in-person events to virtual events and decided to adjust their product and services to offer support to event coordinators who were also pivoting from physical to online venues. Now they help those event coordinators create two-way video chat rooms to recreate the networking feel of an in-person business event.
Locally, that has played out with several of my clients in the corporate event space who are forging new relationships with online meeting tech experts and carving out a niche as online event specialists. They provide value from a production management perspective and can help their clients (the event hosts) by taking on the responsibility of sourcing the right technology to create the desired event experience. This is an experience that will need to become increasingly sophisticated as we all grow accustomed to Zoom calls and demand more from our virtual and hybrid experiences, be they multi-day events or live-streamed yoga classes.
Their choice to pivot is a focus on the long game. They can’t replace their gigs for spring and summer, but they can position themselves as expert partners for event hosts who will need to continue planning activities for fall and beyond.
The faster the platform experts and the event planning experts can assess the market need, adapt their products and services, and get real-time feedback from current and prospective clients on what they want, the faster they can pivot to retain and attract new business.
This is just one example of a business pivot, but regardless of your industry or business type, the solutions and decision to pivot come from the same place:
What new problems are there to solve? Or can I solve existing problems in a new way?
Am I in a position to solve them?
Will anyone pay me to solve them?
As you ask the important questions about how to reopen safely and what our new reality will mean for your product, service, or business as a whole, take the time to ask the key questions that will help you determine if it is time to reimagine your business.
Taking the Next Step in Business
For many business owners, myself included, pivoting is hard. We are learning new skills, and rethinking how to deliver what, just three months ago, was a known quantity.
Since the beginning of the quarantine, I have advised clients to over-communicate—stay in touch with employees, vendors, and customers. Now it’s time to use those communication channels to test your new ideas and get feedback.
Ask current clients open-ended questions about what problems they are trying to solve. The local grocer may be having trouble stocking shelves with seasonal fruit. While you may not be able to solve that problem, perhaps you can help them think about new ways to replace the in-store tasting experience when they shift from crisis management to driving product demand.
Focus on adding value, right now in real-time. Share what you know and what you are learning. Have a very clear picture of who your clients are and what they are looking for. Speak their language so they know you understand them and know how to help.
Connect people—customers to resources, colleagues to opportunities, prospects to knowledge. Be generous.
Find small ways to experiment. Start small, work out the kinks, then scale what works.
In the midst of it all, be sure to mind your mindset. You don’t have to be relentlessly positive. You do have to focus on abundance. Invest in yourself. Invest in your business (run the numbers and measure results).
Separate your personal ability to be nimble and resilient from that of your company. You will survive this. Your business may, too. Both will be different. Be excited by what comes next, whatever it may be.
If you think it may be time to pivot, or you know it is and you aren’t sure how to begin, I’m here to help. Sometimes the best way forward, in any situation, is together.
