Coronavirus epidemic has changed everything in just a few weeks. The only thing that’s certain now, is uncertainty. A lot of companies have been negatively impacted and severely disrupted, all of us CEOs, execs, employees, entrepreneurs and company owners are moment of considerable confusion and it is not clear what lies ahead. In this article we will talk about how you can pivot your company in financial crisis.
Managers believe that most of the best companies come through the worst of times — as sometimes, in our darkest days, new inventions and ideas are the signposts of light. The only thing we like is the light of a brilliant idea. What new businesses, goods, trends are born out of our modern reality?
As a businessman and CEO who withstood the dot-com bubble collapse, September 11th, and the 2008 financial collapse, I know from first-hand experience the possible destruction that companies face today. The economic effect of what we are currently seeing is immense, but there are also prospects to grow better than it’s ever been.
As for myself, I’ve had to pivot a lot of times, and although it can be frightening, can also be a time of growth. Now would be the time to test, to develop and to innovate. That’s better said than done, of course. It’s hard to transform your market in periods of tremendous transition. Prior to actually pivoting, I suggest first of all that you stabilize your company to the best of your abilities. It is essential to stiffen your belt, analyze your costs while ensuring that you take the appropriate action to deal with the crisis.
There are probable adjustments that you tried to make in your company, but you’ve not, so now is the time to take action. Assess your abilities, check your deals, and determine what is really required to run your company. Make sure you spend your cash wisely. Look carefully at your finances to see just how you can reduce your losses. It’s time to streamline so that you can move on without the pressure of additional costs.
A company that was fragile throughout a good economy is very exposed in a poor economy. When the company is not working now and didn’t seem to work well 6 months ago, it may well be time to reassess its long-term viability. Winston Churchill once stated, “Don’t let a good crisis go to waste.” Utilize this crisis to get away from companies that haven’t worked and haven’t been around for a while. Invest your time and energy into what’s working against what’s not working. It’s time to be absolutely frank with yourselves!
It is also a perfect time to make the best of the financial resources accessible. Many of the businesses in my portfolio have registered for a federal government salary insurance plan. If you’ve not already, it is vital to teach yourself about the many forms of assistance, help and support that have been made available.
When you’ve settled your company, it’s useful to concentrate on the future. Here are five ways to pivot your company not only to succeed, but also to prosper:
1-Focus on the digital path
If you’re largely out of a brick-and-mortar store, it’s better to explore a digital version of the job you’re pursuing. Can you provide your service or product digitally? Restaurants have been extremely hard struck by the pandemic, and others have turned to internet ordering and on-the-go orders. Panera Bread has taken things a step further, making it easier for consumers to order grocery items online alongside their regular salads and sandwiches.
If you own a clothing store, it’s a wonderful time to create a shop online with a 90-day Shopify trial. If you are a gym trainer, you can practically hold your daily exercise classes with Zoom. If you are an interior design firm, pivot to virtual counseling sessions, you can also develop content with links to purchase products. Real Estate brokers have welcomed a mobile footprint, from 3D tours, Facebook Live and immersive walkthroughs, to featuring houses on TikTok.
My local liquor store offers delivery service and cocktail making classes and wine tasting meetings through Zoom. Despite everybody trapped at home, the market for web content is stronger than ever before.
Ask yourself: what can you offer online?
2-Utilize your current funds and resources
Utilize your current assets and resources to match them with the needs of your consumers. What else could you alter to meet those needs?
Companies of all sizes already are making effective pivots in order to meet various needs of customers and to continue operating. Cosmetics producers such as LVMH, which owns premium perfumes and make-up brands, have turned to hand sanitizer production, exploiting their experience and production capability. Huge manufacturers of clothes, such as Gap, Nike, Zara, and Brooks Brothers, use their production lines to build masks, scrubs, and gowns.
In the midst of a sharp decline in ride sharing, Uber started an On-Demand Work Platform, ranging from ride sharing to labor sharing. Uber ‘s Work Hub allows Uber drivers to connect to other Uber channels, including Uber Eats, Uber Freight and Uber Works, or to a rising group of companies which use Uber’s platform, including McDonald’s, PepsiCo, UPS, FedEx, and Walgreens. The pivot enables Uber to exploit its biggest assets, infrastructure and trained workforce and helps drivers to pursue alternative jobs.
Ask yourself: what do customers need the most today? How could your business offer it with your current resources? If your company is unable to run, is there a way to pivot it into a digital or a company that is considered essential?
3-Deepen loyalty to current clients
We’re part of the same team. Be real, honest and clear in your attempts to support your clients the best you can – and let them realize how they can help you in return. Loyal clients are fans of the business and supporters of the brand. Keep on going to ensure a consistent relationship with the customers, whether straight, individually, in newsletters and/or through social media. Create an emotional connection. Trust makes a difference (more than ever before)!
With people who spend ever more time on the internet, it’s a fantastic opportunity to offer relevant and engaging content about your company. One local interior designer posted photo montages-including a hand-washing inspired sequence with a selection of stunning bathroom photos. A local salon shared a series of photographs of stylists each carrying a sign with a different word, jointly telling customers that “we love them, and we’ll meet them again.”
Sky Zone, an indoor trampoline park that is the favorite place to organise children’s birthday parties, has 160 places which are now closed today. To help give back to parents who may want to party whilst sitting at home, Sky Zone is providing free interactive children’s birthday parties for up to 10 kids, helping parents and keeping workers going. Sky Zone is creating a positive and unforgettable effect on kids, families and the environment, strengthening their consumer relationships.
Identify the best way to interact with your existing clients and do so in innovative ways.
Ask yourself: how could I best interact and connect with my clients now? How should I do to motivate my current clients to help my company? What are other businesses doing to engage clients that I could do, or could help my company?
4-Explore the benefits of working together
There is an African popular proverb which says, “If you want to go far, go on your own. If you want to go further, go together. “The aim of cooperation should be innovative concepts, the discovery of synergies and the development of new business relationships, where 1 + 1 = 5. Collaborations can help to give you access to new clients, new markets or new products.
What partners can you collaborate with that you also have the assets you can utilize? Is there a partner that you think can help sell products and services to your client base? What do you get in return for them? Is there an option to package the goods together? True partnerships and productive relationships are win-win.
It is also necessary to cooperate with other organizations on ideas and support. Being the local or small company may feel especially alone, but there is strength in numbers and much more innovations. Make an attempt to interact, whether it’s a nearby company, a local Chamber of Commerce, an industry business lobby, or even a Facebook or LinkedIn group.
Cooperation does not really have to be on a broad scale to be successful. For instance, when their shopfronts closed because of COVID-19, local ice cream parlor NORMAL Ice Cream teamed up with Diabolical Records to offer a home-made complete package of 3 pints of ice cream and $30 worth of vintage records for $50. They revealed the collaboration on their social media accounts and sold it out in the next hours!
Throughout these times, several businesses have formed creative alliances.
Ask yourself, who can I work with? What firms do I have synergies or rising user profiles? What current relationships will be mutually advantageous to my company?
5-Try and fail (and try again!).
There has never been a greater time to try (and fail!). It’s time to explore and pivot. Release new innovations easily with limited investment. Focus on the effects of this. Know and strengthen every iterations. Not all you’re trying to do will succeed. And that’s all right. Wait for it to fail. Move on, man. It could take several tries to find out what works for you. Be brave, man. Have some courage. In the end, patience pays off.
Embrace your pivot! Don’t dwell on something you can’t control … think about what you can do.
There are a number of popular pivots. YouTube used to be a video sharing site. Twitter once was a podcasting network called Odeo. Play-doh used to be a wall cleaner that turned into a favorite child’s toy.
And even the most popular and prominent businesses have had many failures-some of which you cannot even recall-Google ‘s social media service Orkut, Coca Cola’s unveiling of Coke Max, and Amazon’s Fire Phone. Inventor Sir James Dyson produced 5,126 vacuum layouts till he eventually invented a bagless vacuum that did work.
Ask yourself: when I do a simple test of a new idea and it fails, what’s the worst thing that could happen, and also what expertise can I obtain from attempting? How can I benefit from discovering a new partnership or cooperation?
Embrace the pivot
If your company has been hit hard from the current economic situation, you’re not the only one. It’s important to note that great businesses can be established in tough times. I launched my first business since the dot-com bubble exploded, which gradually expanded to over $100 million in annual sales. Most of the famous businesses you see today — WhatsApp, Uber, Credit Karma, Pinterest, Slack, Venmo, and Square — were all formed after the 2008 financial crisis. Embrace your pivot! Don’t dwell on something you can’t control … think about what you can do.