One of the worst things about the COVID-19 pandemic is how unpredictable it has been. We hear the words “uncertain times” and “changed landscape” a lot, but there’s a reason these have become clichés.
Look at some big-name companies that have been brought to their knees – JCPenney, Hertz, Gold’s Gym, J. Crew. All of them have filed for bankruptcy despite being around for decades.
With so many businesses shuttering operations amid the pandemic, it’s easy for you or your business to lose hope. After all, if even the biggest companies and economies are taking a massive hit, it should only be a matter of time before yours closes for good, right?
Wrong. There’s still hope, even in a disturbingly dark time like this one. But what can you do?
The answer lies in one word – PIVOTING.
What is Pivoting?
Pivoting is just another word for turning. And this simple word can mean a whole lot in making sure your business not just survives, but thrives. In fact, it’s a proven strategy that has helped the world out of some of its biggest economic crises.
This has been true at the end of the Great Depression, when American companies like Chrysler and Hershey changed their business models to adapt to the times. How so? With the war coming up, Chrysler switched from building automobiles to building tanks. Hershey also pivoted to wartime products, as they made the D-ration bar (now called military chocolate), which is specifically designed for soldiers to eat on the battlefield.
But even more recent examples have shown the effects of pivoting. Starbucks was already the world’s biggest coffee chain, but after the 2008 Economic Recession, they made sure to start pivoting to mobile apps and customer personalisation. This set the trend for apps like Grab and Doordash to become the standard for easy-access consumption.
The same is true for Netflix that turned their business model into a streaming service from the fast-declining DVD technology. These businesses made sure to pivot to cater to a world that was becoming increasingly home-centric after the 2008 recession.
Pivoting has become the standard technique when dealing with an economic crisis. It follows the simple principle of being necessary. Pivoting is about transforming your company to be fit for purpose.
How Have Companies Pivoted in this Pandemic?
Now, it isn’t just in the past that this model has been proven to work. Amid the current pandemic, many businesses are thriving because of their ability to pivot.
For example, Unilever pivoted to prioritise packed food, surface cleaners, and hygiene products while almost completely abandoning its skin care products. The same is true for H&M, which went from making fast fashion to also making personal protective equipment for medical frontliners. Even spirits companies like Bacardi went from making alcoholic beverages at its distilleries to making hand sanitisers.
Companies are rediscovering the value of pivoting, and making sure the business model addresses people’s needs and desires in such a difficult time. And it’s something you can learn to do too.
Review, Reclaim, Revise
If you’re about to pivot your business, take note of the following steps to make sure you do this effectively.
The first is to review your business. Check which products and services you’re still capable of selling, and which of your resources you can afford to repurpose and continue profiting from. Look at Dimo’s Pizzeria in Chicago, which used the same oven for making pizzas to make face shields for healthcare workers.
Once you’ve done this assessment, it’s then time to reclaim your part of the market share. If you own a food business, one way to do this is by offering a set number of meals you can ship out every week. You can also allow your business to service frontliners, which will not only help build brand credibility, but allow your business to do its part for those in the community who are having the most difficult time in the pandemic!
Finally, look to revise. Make new income streams when you make revisions to the ways you earn. Spotify did this by absorbing and creating a bunch of different Spotify-exclusive podcasts to drive more traffic to the app. There are opportunities to expand your income streams, but you have to make sure that you’ve carefully assessed the viability of these channels for your business.
I hope this helps in allowing you to keep your business thriving! There are silver linings even in the darkest of times, and it’s up to you to find them.
To your success,
[Visit www.mariosingh.com now to enjoy a FREE e-book of my latest “37 Essential Principles for Massive Success” when you subscribe!]
Originally published at https://mariosingh.com
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