When it comes to business growth, change is good. It is also unavoidable. Choosing a route of change to grow your business in the right direction requires at least one vital pivot to create additional revenue.
All successful businesses find ways to maneuver in gaining leverage on their existing market or expanding beyond their base. Ultimately pivoting will make a difference in determining how much lasting value your business holds within its market. When your business is ready, one sustainable pivot for that next move can be a defining moment for its future.
Strategically Plan Your Pivots for Business Growth:
- Define in detail what your customers’ expectations are when they purchased your product. Don’t just assume.
- Brainstorm a tangible list of similar products or service that customers are purchasing besides from your business. Think outside the scope of your business to be fully aware of your customers’ needs and have solutions.
- Survey your customer and enlist their feedback for determining what service or products interest them. What do they want that no one else is offering and can you deliver?
- Develop an action plan for ranking your most effective sales margin for your products. Test them in other areas to find out if they will rank just as high somewhere else, or even higher.
- Recruit established and long-term customers to test your ideas for the viability of new products or new markets. The customer is the touch-point measure of what is current and sales worthy in the market.
- Assess all current resources within your product base for determining additional selling opportunities without needing to invest any significant start-up costs. Think in terms of recycling resources.
- Have an internal advisory board of trusted consultants to assist in educating, developing and implementing any base market growth ideas. Diversify their knowledge and skills to give you an array of conceptual ideas.
There are at least three ways that you can pivot your business for continued growth:
• Taking a Base Product into the Same Base Market
When first launching a new business opportunity, it will not require any considerable pivot before establishing a base product in the current base market. However, because of its infancy stage, you will be vulnerable to receiving the response from your early customers to help establish your individual base market. There should be considerable efforts made for modification of your product or service. It can actually be quite daunting when trying to gain any momentum. An increase in sales will be the defining measure as to whether or not your business has the potential to become effective in its market.
Once revenue has been measured, and your product has generated enough feedback to be considered marketable, it will be to your advantage to pivot at the right time. It’s not about changing your course just for the mere sake of taking that next step; however, it is about pivoting when and how it makes good business sense. It’s important to stage your next move so that it adds to your core base market. Concentration and strategic analysis on the core business prior to pursuing any alternate revenue will be vital in discerning where those revenue streams are leading your business.
• Introducing New Products into an Existing Base Market
Gaining an established network of customers who trust in your product will allow you to begin reaching the same customers. Consider your approach from the standpoint of the customer’s view. Customers want an error-free process, and if issues do occur, they want solutions fast.
There are certain pain-points that already have existed for the customer, and you want to be able to identify those pain-points by looking at what other businesses are doing. Use their errors as your learning curve.
There’s an important role of learning from your competitors, which will assist you in determining what your customer’s needs are and how they relate to your new product line. This process will provide an advantage for proactively finding solutions before they even occur. This is a process that should continue throughout your business and not just in the new product phase.
• Developing a New Product for a New Market
Customers are all alike. They want a good product for a good price point. If you have a service or product that is relevant to their needs, they will do business with you. Creating a new product and introducing it to an entirely new market means you need to be very creative. However, the concept to do this is relatively simple. You want to take what you already know to do and make it marketable using the existing inventory or service you provide and just switch the logic you used before to the new market. This creativity will build on the base you’ve already established and tested.
It’s not that you’re starting over. You’re already ahead of your pivot point to then start attracting your new customer base from a strategy that has been proven successful. The product is different, the market is different, but the resources you used to get there are all the same and can be recycled for reaching a new market by selling something completely different. Use those resources effectively.
Pivoting allows you to reduce your susceptibility to creating a constricted product base. Altering your business with the changing markets and with the conditions of your customers will help you to create longevity. In the end, it will build multiple revenue streams for your business and allow for its expansion. Pivoting brings the potential for growth and an opportunity to leverage other business enterprises yet to be discovered.