The disruption of business has forced companies to reevaluate and made pivoting some businesses necessary to survive. Don’t be scared! It might be the opportunity you have been waiting for to transform your business.
When pivoting your business, there are three aspects of the business model to consider: value proposition, value network, and target customers.
The value proposition is the value that your product provides
- Fulfil needs and create solutions. During a crisis, the needs of people change. It is then crucial to spot these unmet needs and to address them. A clear idea of the business’s strengths and recognition of the industry’s weaknesses is empirical.
- Use existing assets to create new value. Streamline assets to create new value that is not traditionally offered by the company, but is in high demand. An example is housekeeping services specializing in sanitation.
Value Network is how you deliver the value of your product.
- Find new ways to deliver your value. The rise in popularity of platforms like Zoom and Google Classrooms is because of this. As people are encouraged to quarantine, businesses that traditionally meet face to face with their customers have gone online instead.
- Connect and collaborate. Collaborate with players in the industry to create a new value that is only achievable when working together.
- Re-purpose assets. Re-imagine existing assets to produce new products. An example of this is how a liquor manufacturer can shift from producing liquor to producing disinfectants and sanitizers now.
- Find novel ways to get paid. Explore different payment modes and terms
Target Customers are the people who benefit from your product
- Find new clients. Explore a different demographic of target customers
- Collaborate with businesses in the target locale. Collaborate with other businesses to create a product. An example is when a trucking service collaborates with produce suppliers to create a mobile grocery.
Pivoting your business is all about finding the right aspect to pivot from and coming up with the most logical, tangible, yet unconventional idea. Its focus is on saving the business or allowing the transition to a new business model while using existing assets. A dynamic and evolving approach is ideal.