Significant business change
Dan Nicholson
A Not Boring Finance Guy Helping Purpose Driven Entrepreneurs achieve Financial Certainty
There are two ways that your business can pivot:
It can significantly boost the business. Or it can damage it.
Obviously, you don’t want the latter to happen to you.
This is why you need to lay down the groundwork that’ll help you avoid failure. You want to ensure that pivoting the business will lead to continued growth and success.
But how will you ensure that pivoting will only result in a boost in the business?
Consider the following:
1 - Position in the market
Find out your company’s market share in its niche. Take into account your market share on the local and national levels. Consider the international market share, too, if it’s applicable.
If you know your position, it tells you how to best compete in your niche.
Is it through convenience? Competence? Or maybe cost?
Choose only one based on your position in the market. Then, work on excelling in it. Once you become more successful, you know you can compete on a different level.
2 - Future of the market
Once you’ve determined your current position, it’s time to look at the future.
How mature is your market? Is the market cycle easy to disrupt? How much of the market is already occupied? Where does your product stand in its current lifecycle?
All products come with their own life cycles. Consumers have their own buying cycles, too. Determine your own market cycle and assess your position. Then, compare it to your competitors and their products.
If you understand the diffusion of the innovation curve, this becomes a lot easier. You can apply the curve to your business. It helps you understand the future market trend better.
3 - Existing audience
This is probably one of the most important considerations you should make.
Your audience should be able to follow you as you pivot the business.
But, where is your audience and what does it want?
Find your audience on the diffusion of the innovation curve. It will allow you to communicate better and get results.
Make sure this is done across many channels. That way, you’ll know where to focus your effort. You’ll also know how to best communicate with the audience and give them what they want.
Remember, don’t make any significant changes in the business unless you’ve gone through these three.
If you need professional advice before pivoting, we can help.
Let’s see if we can work together.
Get in touch with Nth Degree CPAs at www.nthdegreecpas.com.