Businesses have been hit particularly hard by the Covid-19 pandemic, and with social distancing measures likely to remain in place for some months, the already sharp drop in revenue is bound to take its toll on even the deepest pockets.
While we still don’t have a definitive end-date in sight, we do have a clearer picture in the sense that we know this is not just a ‘flash in the pan’, and will have lasting effects for some time. This is why businesses must now shift their thinking, away from short-term survival and towards pivoting to accommodate in the mid-term.
What do we mean by ‘pivoting’?
Pivoting is exploring new revenue streams or methods of selling your existing product or service. A great example is the restaurant industry. Many restaurants who originally only catered for people wanting to dine in, now offer takeaways through Deliveroo or Just Eat. These business owners have recognised that even though they can’t dine out, what their customers want is still essentially the same thing – good food without having to cook. No, they may not get table service, an excuse to change out of their loungewear or an escape from the kids – but customers are still getting to treat themselves to their restaurant favourites. This in turn means that chefs are still working, revenue is still being generated, and with lower overheads this pivot may see some restaurants not just surviving but thriving.
What does Pivoting look like?
It’s important to note that pivoting is not a ‘one-size-fits-all’ solution for all businesses. Just like starting up your business in the first place, careful consideration and thorough planning is needed in order to be successful. For example, pivoting away from face to face selling to purely online sales will require investment and potentially some very quick upskilling!
Changing your supply chains could also have significant implications and a long-lasting impact – so be careful not to close doors which can’t be reopened. One of the most important considerations during pivoting is whether your new plan involves furloughing vs laying-off staff. Remember to consider how these options affect rehiring and benefits.
When planning to pivot, it’s important to decide whether you are making emergency short term changes to see you and your team through the next 6-12 months, or is this likely to be a more long-term solution – perhaps even a kind of brand development or expansion. It’s a good idea to talk through ideas with someone who understands your business before making any quick decisions, as while this pandemic may be a temporary issue, pivoting could unlock a very different way of operating.
A great way to start thinking about pivoting and how it could work for you is to research. Look online for examples of successful pivoting, as well as unsuccessful experiences – it doesn’t hurt to learn from others mistakes. Perhaps reach out to other business owners in your area and discuss the appetite for business locally. Are you all living in a ghost town or are some businesses already pivoting/thriving? Martin Baillie your, East Anglia business coach/growth specialist, has put aside 5hours for complimentary coaching sessions to support businesses in our area.
Why not get in touch to find out more about pivoting, and whether it could work for you.
