Okay, so this week I’ve got another great question from our community.
Someone’s asked how best to pivot your business when it is hit with sudden unexpected but enforced changes.
Now, I’ve talked before about handling change, but I wanted to revisit that because these kinds of sudden shifts, whether they come from market forces, economic downturns, new technology, or something completely out of the blue, are something that every entrepreneur will face at some point in their business career.
And the thing is, if you handle it well, far from being a disaster, it can actually make your business stronger and more resilient. You’ve probably heard that phrase, ‘necessity is the mother of invention’ and that is exactly what often happens in these moments.
So, I wanted to share some practical tips that are gonna help you deal with sudden change and not just survive it but hopefully go on to thrive as a business.
Now, the first thing which is really important, you must act at pace.
When something unexpected hits, it’s vital to quickly assess the new reality and be prepared to adjust your view of what the future could look like. I’m not talking about rushing around in panic but I do mean acting with a real sense of urgency. Hesitation can be just as damaging as panic.
You want to become an expert on the new situation as fast as you possibly can, gather accurate information from reliable sources so that you can make good decisions based on fact, not fear.
Next, think about what the immediate impacts are likely to be.
Your costs, your supply chain, your customers. Does this change bring you challenges or could it actually open up unexpected opportunities if you can move fast enough?
Take a look at your internal capabilities. I’m talking about everything from your financial position, your stock levels, your productivity, your IT systems, your people strategy, because knowing exactly where you stand is going to help you work out what it is that needs to change in the business.
Then while you’re doing that, think through what new opportunities and threats that this change might bring. For example, new legislation might make exporting harder, which could reduce your sales but the same legislation might stop overseas competitors selling in your market.
You might actually end up with a bigger domestic customer base, lower shipping costs and better cashflow. This is the time to think creatively, right? See challenges as opportunities and get your team involved. Their insights and perspectives can help you spot things that you might miss on your own. It’s really important that everybody’s got something to contribute.
Once you’ve got a clear understanding of the new environment, it’s time to decide where you want to take the business.
Now, sometimes that means just a little subtle shift, business as usual with a few key tweaks, other times it might mean a much bigger pivot. Either way, the principle is the same. To avoid drift, you need a really clear new direction, that North Star. It’s important to acknowledge that these changes aren’t happening because your old strategy was wrong, it’s just no longer the right strategy for the new norm.
I’ve seen plenty of businesses cling onto an old plan out of pride or ego and thinking that changing tact looks like weakness. But actually it’s the complete opposite. Adaptability is one of the strongest qualities that any business can have. It’s also a great time to remind yourself what your business stands for and the value that it brings to your customers.
Now, you might find that your core purpose hasn’t changed at all but revisiting it can really reinforce what makes you different, especially if there’s new competitors entering your space. Then go and revisit your objectives. Make sure your new goals are smart, so specific, measurable, achievable, relevant, and time-bound and then make them reflect the new landscape. If traditional product sales are dipping, maybe focus on the digital environment, online sales, new revenue streams.
Go and be bold, be flexible and don’t be frightened to change direction.
The key here is not to wait for the perfect plan,I want you to prioritise speed over perfection. Opportunities don’t hang around so be prepared for your plan to evolve as you learn more and then start operating in this new environment.
Once your new objectives are set, communicate them clearly to your team. Alignment and clarity are what’s going to help everybody pull in the same direction.
Now comes the really important part, that acting at pace that we’ve talked about. Once you know your direction, get moving.
When the world around you is changing, sticking with your old business model for too long is an enormous risk so start actively seeking out opportunities. Explore new revenue streams and look for where new demands might be emerging.
For example, a restaurant might move from dining to delivery or meal kits while a wine merchant might look at creating a subscription-based wine club model, for example.
Look at how you’re using technology. Can AI improve your customer engagement, speed up development times? Check your social media strategies, is it still right for your new audience, or is there a new way that you should be operating?
This might also be the perfect time to develop new products or refine your existing ones based on customer feedback. Think of enforced change a bit like pruning, yes, it can feel like you’re cutting back, but really what you’re doing is cutting back to encourage new growth so don’t fear it. In fact, get excited about it and use this change as a springboard for new innovation in the business.
Now finally, keep a very close eye on your finances because sudden and forced change can create real financial strain so it’s essential to stay on top of your cash position.
Conserve cash where you can and review your cash flow, cut non-essential costs and talk to suppliers or lenders about more flexible terms. It might also be worth revisiting your pricing model. Can you just bump up the prices a little bit to just reflect the demand or adjust them to stay competitive and maintain volume?
If you’ve already got a contingency fund, brilliant. If not, look into some short-term financing or even maybe some government support because access to a bit of extra capital is going to give you that valuable breathing room while you go and implement your new strategy.
So there you go. Facing sudden and forced change can be really scary, but if you handle it well, it can actually be the spark that takes your business onto the next level.
Thanks for watching and I guess I’ll see you next week!