Pivoting is a jargonized word for resetting your business to be relevant. It’s used extensively in the start-up world and has become a buzz word as a response to the crisis wrought upon all businesses during the 2020 covid nightmare we have all lived through.
Why, when, and how do you do it as an established business? Listen to Pavlo Phitidis discuss this on The Money Show on 702 & CapeTalk:
To survive or thrive requires to you to be constantly adapting and adjusting your business. It’s a natural outcome of growth as well as a response to a change in the status-quo.
When you face a threat or opportunity, an entire reset of your business, or part reset is a highly likely outcome. We call it the break-build period and it’s often the outcome of next-level-growth. When under threat, it’s driven by necessity to survive. A threat changes the status-quo of your and your clients/customers world. Persisting with a business-as-usual approach reduces your relevance and value to your customers….and that can be your death knell.
Start with defining your value stack
This includes all your tangible and intangible assets, relationships and insights, sector knowledge and foresight and personal attributes.
Then peel your onion
Using the onion peeling method, you can allocate and categorize your value stack into the 3 layers of core-strategic, non-core-but-strategic and non-core-non-strategic.
Generate a cashflow forecast
Cash is king, preserve it, build it, hold onto it and invest it only to accelerate the generation of it until things stabilize.
Do not raise debt!
Finally Reset, Rebuild and Reignite
Reset is a re-definition of your value from the experience of your customer.
Rebuild is the ‘reconstitution’ of your business model and operating activities to create scale in your reset business.
Reignite is accelerating your growth through acquiring the customers, stock, plant, equipment, talent etc. of your competitors who have failed to reset and are losing their relevance and revenues.