Strategies for Successful Business Pivots
In the business world, adaptability is the key to longevity. There come a time in the entrepreneurial journey when making a pivot is critical to keep a business afloat or to keep it relevant – whether it be to modernize a business to meet the current business landscape, or to address other external factors impacting sales, as we witnessed firsthand during the pandemic.
“We helped businesses pivot during COVID, by helping doctors offices start seeing patients virtually by implementing telehealth, which was not used at the time, and we helped local tanning salons pivot their business by adding e-commerce to their website – that is how they were able to sustain their businesses while people were not able to visit in person. Both of these pivots helped shaped the future for these businesses as they are still implementing these practices today,” says Tabatha Rowbatham, Co-Founder and COO of Twinning Pros, a marketing services agency.
For many established and traditional businesses, millennials are leading the charge regarding transformative change. An estimated 36% of Millennials are considered to have a very high entrepreneurial spirit, compared to 29% of Gen Z, 33% of Gen X, and 25% of Baby Boomers, according to Statista,. This spirit can help drive change in new and established organizations, breathing new life into traditional models to ensure their business’s legacy and relevance for years.
Infusing new generational energy into established businesses is essential for driving modernization and maintaining competitiveness. The onus is on the newer generation to spearhead the transformation, adapting to the shifting market dynamics, technological innovations, and evolving consumer preferences. It’s essential to identify potent strategies for revitalizing an established business through the lens of visionary leaders who have adeptly steered their ventures through these transformative waters.
Balancing Heritage With The Future
A new generation of leaders must harness the dual forces of respect for the business's heritage and the drive for innovation to rejuvenate and steer the company toward sustained success. They face the task of integrating contemporary technologies and business models while preserving the core values and legacy that have been the foundation of the business's identity and success. This delicate balancing act is critical in redefining the business's trajectory in a marketplace that is unforgiving of complacency and slow adaptation to change.
“We conducted thorough market research to gain insights into Gen Z’s preferences for design, pricing, and shopping habits. By leveraging storytelling, video content, and emphasizing unique designs and sustainable manufacturing practices, we effectively appealed to the values and interests of the Gen Z audience,” says Julie Zhu, Fractional CMO at Julie Zhu LLC, a marketing consultancy based in New York City. Zhu successfully helped modernize a 121-year-old family-owned diamond business that was looking to target a younger, Gen Z market and expand to the Asian market.
She also emphasizes the importance of seeking an outside perspective, whether that be through a consultant, focus group, or other means. “They can help identify areas for improvement and guide you through the modernization process.”
“My entrepreneurial journey is marked by a willingness to embrace change and serve a new need within the community,” explains Tommy Mingledorff, a young lawyer who has successfully shifted his family’s law firm Mingleforff Law Firm from criminal defense to personal injury. Under Mingledorff’s leadership, the firm has reinvented itself, taking 40 years of legal experience into a new direction.
A Need For Tech
One of the paramount strategies is embracing digital transformation. This involves upgrading hardware and software and adopting a digital-first mindset that permeates every aspect of business operations, from outreach to engagement to backend processes. Digital transformation aims to create a seamless, efficient, and responsive infrastructure that meets the demands of a technologically savvy client base and workforce.
"Embrace digital transformation by adopting new technologies such as AI tools that can streamline operations, enhance customer experience, and improve efficiency,” adds Zhu.
“Digital transformation’ has become enterprise shorthand for technology updates like moving to the cloud. However, a disruption in the business model is driving this change,” explains Adrian Cockroft, Vice President of Cloud Architecture Strategy at AWS. Businesses of all types embrace digital technologies to streamline operations, enhance customer and client experiences, and open new revenue streams.
Cultivating A Culture Of Caring
Modernization is as much about people as it is about technology. Creating a culture that prioritizes company values and service will motivate employees (especially Gen Z and Millennial employees) to take pride in their work. “According to Millennials, the ideal work environment is mission-driven and collaborative. It’s a place where the people they work for inspire them to do great things, the people above them provide mentorship, and people they work with are more than just coworkers,” explains Human Resource expert Erin Engstrom.
Mingledorff found that true as he pivoted his family business. “Leading the firm through this pivot required a clear focus on maintaining the core values that have been its bedrock for four decades: integrity, client-centered service, and a commitment to justice. And treating every client like family.”
Staying Connected
Change can be challenging for employees and clients alike. That’s why it’s essential for organizations to stay connected to their clients and communicate their updated mission and values.
Pivoting an established business requires a strategic approach encompassing technology, people, processes, and culture. In addition to adopting the latest technologies, it requires fostering a mindset of shared values, customer centricity, and clear communication. By implementing these strategies, businesses can stay relevant and competitive even in a rapidly evolving landscape.
