Tips for Pivoting your Business During Covid-19

By Randall Orser | Budget

In the past few months we have seen companies take amazing leaps to change the way they do business and manufacturing businesses retool to make new products to meet changed market demands.  From distilleries and hair product manufacturers making hand sanitizer, to clothing manufacturers making surgical gowns, other industries making ventilators and fine dining restaurants turning to take-out and delivery.

It used to take companies a long time to develop strategies to change manufacturing plans but during the pandemic it has been necessary for businesses to make new plans at lightening speed in order to stay in business and keep their workers employed.

However many companies are struggling to meet this new reality and need help to reinvent themselves.  Lior Zehtser from Connect CPA says that "To pivot, you really need to think outside the box and be comfortable with taking a risk and experimenting with a different or unique business model.  Your idea obviously has to take the friction away from close contact, so that anything delivery based or "contactless" would be a great start.

Here are some ideas that might help you to make some decisions:

1. Solving Delivery Dilemmas - the need for delivery especially in the food services sector is insatiable. An outside of the box way of shopping and delivering unique goods to customers is a good idea for a new business. It can be expanded from food to all kinds of products that people would like to have but are not shopping for if they are only going out for necessities.   

2. Going Back to Basics - instead of producing your whole range of products concentrate on the ones that are most popular to make best use of your resources.  Companies are listening to what consumers want the most and are limiting their production to those high demand products instead of producing their whole range of products.

3.  Provide Entertainment -  as families are spending more time together at home offering them a diversion to relieve the boredom is a great idea.  Specialty bookstores and game stores are offering delivery services which are successfully increasing their bottom line.

4. Add to your Product Mix - for example if you are a company that usually delivers drinks or snacks to offices pivot to making home deliveries and add other basics such as milk, eggs and bread and fruit and vegetables.  Many restaurants are doing this by adding many of their sauces and desserts etc to their menus so that people can cook at home with gourmet foods as well as having meals delivered.

5. Make a Product to Help to Fill Health Needs - many distilleries are making hand sanitizers and hand wipes and offering them for free or at a discount to essential service providers.  This is a way to give back to the community and builds brand loyalty.   Many clothing manufacturers have pivoted to making face masks and surgical gowns as well as fashion face masks for sale direct to customers.  

6. Take your Business Online - live streaming and video conferencing are the new ways to stay connected and do business.  By doing this you can keep in touch with your customers and suppliers but at the same time have the chance to acquire a completely new audience.  

7.  Join a Group of Other Companies Seeking Solutions - to build contacts and nurture ideas to help to create opportunities for your business and others.

8.  Get Inspired Globally - look online and find inspiration from what others are doing.  Learn how other businesses around the world are adapting and discover new inventions from companies and individuals that are helping in the pandemic.

9.  Support your Community - connect with charities in your area to see how you can help your neighbours.  Offer discounts on the purchase and delivery of your products, everyone loves a deal and it brings in customers which will help your bottom line.

10. Keep yourself up to date with the latest trends - no matter when the crisis ends the way that businesses operate has changed forever.  It is important to stay on top of changing consumer demands and have a flexible plan to allow your business to keep adapting to meet those demands.

From an article by Margaret Craig-Bourdin

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About the Author

President/CEO Number Crunchers® Accounting Inc. Learn how to just say stuff it to this bookkeeping thing with our 'Just Say: "Stuff It" To Bookkeeping program.