Is it time for your small business to pivot?
A business pivot is a change in direction. It may mean that you have to shake up your business model, try a new strategy, or offer new products and services.
Change is an inevitable part of business ownership, so if you need to pivot it’s better to accept the truth sooner than later and grab the bull by its horns.
Don’t shy away from pivoting. Yes, it can be daunting, but if your company is facing challenges, then you as an entrepreneur must embrace change.
Here are 3 signs that it’s time for you to pivot your small business…
1. You see a decrease in business revenue
Business typically gets easier the longer you are in the game, right?
You should be making more money now than you were when you first started.
After all, you’ve gained more experience, you’ve had more time to build a brand (reputation), and you’ve cultivated a network.
So, if you see a steady decline in revenue, something must be up.
Maybe there is more competition in your industry than there was when you first started. What can you do to regain your edge?
Maybe technology has changed and you need to upgrade your hardware or software.
Maybe you haven’t been branding or marketing your business in a way that is relevant to your target audience. Maybe your target audience has changed!
A decrease in revenue is a sure sign that you need to pivot.
2. You’re losing customers
Keeping customers is easier and way more cost-effective than hunting down new customers.
If you’re losing customers, this is problematic and you need to find out why.
Maybe your product or service is no longer something that people are interested in because of changes in trends or the economy. Something like a pandemic or a recession can effect the way people purchase from you. These are factors that are at out of your control and you will need to figure out how to stick it out or work around them.
However, maybe outside factors aren’t the problem. If you are losing clients to competitors, you need to pay extra attention. Because if this is the case, demand for your product or service is still high, but there’s an issue with how you’re doing business.
If demand for your product or service isn’t declining, but your competitors are pulling customers away from you, you need to investigate why that is.
What are your competitors doing that you aren’t? Are they able to do the same thing that you do but with greater efficiency and lower costs? Do they offer better incentives and customer service? Do they offer online shopping and get more customers that way?
If you’re losing customers, you need to rethink your business and pivot!
3. You are unable to scale your business
Is your business growing?
If you’re not seeing a decrease in revenue or losing customers, that’s great! However, it’s not enough that your business isn’t declining — you also want to make sure your business is actively growing.
At some point, you’re likely going to want to scale your business.
Scaling might look like increasing efficiency so that you’re more productive in less time, using fewer resources. Working “smarter and not harder” is often easier said than done. If your company is struggling here, you might have to consider investing in new technology and updating your skills.
You might need more people on your team in order to scale your business. You will have to invest in employees with certain skills or provide them with training.
If you can’t find the right people to join you, you might have to revisit your networking efforts.
Perhaps you just need to get your business in front of more potential customers in order to scale.
If this is the case, you can consider a new approach to marketing. Do you need a rebrand?Perhaps look into getting your company website search engine optimized (SEO), or build your social media presence in order to find a wider audience.
Is it time to pivot your business? Pivoting can be scary but a few changes can make all the difference in your business success. Three telltale signs that it is time to pivot are: you see a decrease in revenue, you are losing customers, and you are struggling to scale.
