What are some of the key risks of pivoting a small business model in a dynamic market?

Sometimes it is not so much about the pivot but on doubling down on what is working. You can stand out in today's marketplace by communicating with those you serve and continuing to add value. By providing next-level service; the kind of service that creates WOW moments you can grow even in challenging times.

The choices in pivoting or expanding your business are usually limited to 2 choices: 1) Providing new products to the same customer base, or 2) providing the same type of product to an expanded or new customer base. The choices depend on the strength of your distribution channels, and your product development strength. Choices should be customer focused, by thoroughly exploring customer segments, and asking what problems your customers currently have and how your products or services can help to solve them. I certainly recommend that my clients use the 'Lean Canvas' approach to business planning due to its customer focus.

Pivoting doesn't have to be a headache. It should really start during your Q1 business planning, which should happen during Q4 of the year prior. When you train yourself as an entrepreneur to work ON your business and not only IN your business, you realize that you're always pivoting, just in the smallest of ways. If you're not pivoting, you might find yourself stuck, bored and unchallenged. I know I did! That's when I had to get serious about the business planning in advance. Again, pivoting doesn't have to be drastic if you're already in the practice of evaluating your business. If you're not, then let this be your time to get started!

Back in the 1989, I invented and launched the first version of the TimeCorder, a device for simple time tracking. I was going to sell it to every lawyer, everywhere. That didn't work. So with my stock of devices, I pivoted - I used them for conducting corporate time studies where employees borrow them for two weeks to conduct diagnostic time studies. It turns out that this was much more profitable - I could earn income over and over again by lending out the same devices, rather than selling them and depleting my inventory. The pivot was necessary, and the right thing to do.

While pivoting CAN be challenging, you can ease your way into it. Who needs more stress? Shift your energy to the opportunities. This doesn't mean that you ignore real obstacles that create barriers to the changes you make. It simply means you assess and manage the risks of those obstacles as you plan and move forward. Ask yourself these questions: 1. How much is generated by each? 2. How do I feel when I serve in that role or sell that product? 3. How do my clients/customers respond to the product or service? 4. Does the product or service still solve a problem in this current market or meet a need that is not being met Answer these basic questions & decide if you should keep said product or service in your offering.

Put simply, know your client/customer, their problem and your solution to their problem. You need to know the psychographics of your client or customer, not just their demographics. When you know this information, you know their pain, what they value in a solution and how to deliver it to them. You get it by asking, researching or from your experience from working with previous clients. The solution you offer should directly match the pain you know your client or customer is experiencing. And remember to share the benefits of your solution, not just the features. Tell them how their pain will go away from investing in your solution.

The only way to know if the changes you made will work is to test them in the market. PUT IT OUT THERE! Let the market tell you if it's valuable. Take the feedback you learn about it and quickly incorporate it into the next version or iteration of your product or service and PUT IT BACK OUT!

With the efficiency of technology nowadays the name of the game: Speed. As a small business owner and member of this community, society and country, we at Commercial Capital Finance Group, have seen that small businesses out there are looking for that financial company where they can rely, and be guided in their path to maintain, grow their vision, business, and career.

As a small business owner, your perspective may be the only one that matters, particularly if you're a solopreneur like I am. In the event that you have a team, I'd imagine you're already meeting regularly with your team and keeping them abreast of the changes within the organization. Incorporate these changes into your next meeting. Further, you may want to be proactive and intimate about it. Meet with each team member individually to give them an opportunity to share their thoughts AND feelings about the changes. You may be surprised by what you learn. Your people are smart. You hired them for a reason. Likely, there is some value they can add and that would matter to the success of your new strategies. Keep them close and engaged.