Pivoting Your Business for the Coronavirus Economy
“New Way” and “Old Way” signs pointed in opposite directions
So you’ve got a business that’s impacted by the coronavirus economy. Even with PPP loans and other government resources for small businesses, your revenue is suffering and you’re not sure if you can afford to stay in business. But rather than shutting down, should you be thinking of pivoting your business? It could mean the difference between having the pandemic stop you in your tracks or finding a new path through the current crisis. Here’s what you need to know about pivoting.
Pivoting, Explained
Pivoting is more than fine-tuning tactics. Pivoting involves a profound change in strategy. Companies that pivot may, for instance, switch from being a service company to a product manufacturer, or vice versa.
Common reasons for pivoting for startups include the failure of a new offering to gain traction in the market place. Established companies may pivot when they are outflanked by competitors, or rendered obsolescent by technological change.
Until now, few business owners have dealt with an environment as complex as the COVID era. Today, massive health issues and fundamental changes in consumer behaviors are prompting countless companies to simultaneously try to re-invent themselves in the midst of swirling uncertainty.
Principles of Pivoting
Each of the approximately 30 million American businesses is arguably unique in some way, even it if it’s only in regard to its location. That uniqueness means there is no single way to pivot. However, there are some generally agreed-upon