The 5 questions you need to answer to successfully PIVOT your business

Move the Needle, Disruption, Unpack, Push Back, Low-hanging Fruit…..  

Any of these sound familiar? Like you just heard them (or even used them) on your last ZOOM call? These cliches have become the “script” within the corporate world. And let’s not forget PIVOT …  that was cliche before we were leaning in!  But in the wave of the pandemic and the unprecedented number of struggling businesses, “pivot” deserves some unpacking. 

Transitioning a core business or diversifying into adjacent categories or distribution channels is critical for survival. But for many companies, this shift into new customer segments, product categories, revenue models, pricing strategies, etc. is uncharted territory. To succeed, it requires the same surgical approach and consideration you would use launching a new brand. While time is of the essence, a delicate balance of speed and comprehension will yield the best result. You can be quick, but don’t be in a hurry!   

Over the past few months, I’ve been working with owners and operators in hospitality, food & beverage, accessories, apparel, and design who are eager, and in some cases desperate, to pivot their business. I have found that regardless of industry, I consistently pose a series of questions (below) to proactively uncover inevitable issues or glaring opportunities.  

Here is my list:  

1. What will you be famous for? Does your new concept reinforce your brand’s mission and vision? If yes, and you can clearly articulate what you will be known for in the minds of the customer, you’re well on your way. If you’re unsure, you may be at risk of diluting your brand and confusing your customer. 

 

1. Do you still know your customer? I mean really know your customer?  The pandemic has significantly, and some would argue permanently, changed consumers’ attitudes, behaviors and spending habits. To fully comprehend the impact to your business, you need to assess the “new” behaviors, priorities and values of your customer. When you get to a granular level of understanding, you can develop an effective filter for decision making. 

 

1. How is your situational awareness? Can you identify your direct and indirect competitors, and dissect them? How are they competing? Why are they winning?  Who is their target customer? What is their value proposition? What makes them famous? When you thoroughly understand the competitive landscape, you can hone the best approach. My advice: Do something new and different. Create a new market that meets and exceeds the needs and expectations of your customer.   

 

1. Does your organizational structure and talent support your new strategy? Do you have the internal capabilities and skills to execute, or do you need to hire third parties? There are benefits to both, and the answer lies in developing your strategy first and then evaluating your organization. Be prepared to admit that the team you have may not be the team you need.  

 

1. Is everyone on the bus?  Your shareholders, investors, executive team, and board members? Receiving early and candid feedback and gaining alignment saves time and resources while also keeping your employees informed and motivated. Lack of strategic alignment is one of the primary reasons why many businesses fail to achieve their objectives. 

There is no way to anticipate all the items that may impact your goal.  But one way is to keep asking yourself, “If this fails, why?” Be exhaustive with the list up front, it will serve you well and preserve your precious resources. 

Last, develop a rigorous process for review and adjustment. If you cannot poke holes in your own strategy, surround yourself with people who can. At the end of the day, stay nimble, patient, and let’s circle back if you need more guidance! ​