Knowing when to pivot your business can be essential for surviving a downturn, but how do you manage the risks?
To navigate through tough economic times, quick and bold innovation is often necessary. Not only to get your business through tumultuous times, but to come through the other side stronger. Nevertheless, pivot or growth strategies of any magnitude are always a huge balancing act between risk and return.
If you have decided to pivot your business, there are numerous factors to take into consideration to ensure a successful pivot. Here are some tips to help you reduce the risks associated with pivoting and increase your chances of a lucrative outcome:
Asking ‘Why’ is a great place to start. It will help you gain more clarity and focus when reassessing your business and its role in the market. Thoroughly research your idea and understand your market, with the aim of solving a problem for your customers.
Listen to your customers
Feedback from your customers is a great indicator of whether or not your business should pivot. While occasional negative feedback is expected, if you’re constantly getting criticisms like “too expensive”, “not enough features”, “the purchasing process is too complex”, or any other feedback along those lines, you might be ready for a pivot of some sort.
Understand your UVP
Your unique value proposition is what makes you, you. What unique solutions are you able to offer your customers? It is critical to know who your competitors are and what sets you apart. Be clear about your core business and what your capabilities are.
What’s working – and what’s not
Define what you are good at and try not to be all things to all people. Hold onto what’s working and let go of what’s not. Focus on what will produce a greater ROI and help you to reach your long-term mission.
Opportunities for growth
If you pivot your company in a new direction without much thought as to where you’re going next, there’s a strong possibility that you will run into some roadblocks. To help prevent this, make sure that you not only consider pivoting from your original path, but that you take into account the opportunities for growth and expansion in your new path.
If you stake the identity of your company on a product, process or advantage, then your business has a built-in expiration date. Eventually, like all things, that thing you love is going to be outdated and forgotten.
Pivot properly, on the other hand, and your business will stand the test of time.
The team at Morris Finance offer a range of commercial products to provide cash flow for your business. Contact us today on 03 5223 3453 to discuss your options.
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