Your business model is your roadmap to making profit. It includes all the resources, processes and collaborations you need to employ to be successful. In a previous post, we discussed the importance of making your business model agile and adaptable to market needs. As cliché as it sounds, change is indeed the most constant thing we can expect in life and in fact, the situation is no different with your business.
Repositioning is how you respond to market challenges and, several factors can influence your need to reposition or pivot your brand. For instance, you may not be reaching your target market, the industry you play in may have shifted or even, your values as an entrepreneur may have evolved. If you are in touch with dynamics in your business, you will be ready to reposition your business for profitable growth when the need arises.
Implement these mental shifts as you reposition your business.
1. Adopt the newbie mentality.
There is usually a lot of planning and preparation before launch. From sending out promotional messages and materials to making sure your target market is defined which results in business success. Over time, it is easy for one to focus solely on operational activities of the business while overlooking growth drivers. If you run a restaurant for example, you can become engrossed with ensuring consistency in meals and good customer service displayed by staff. While these activities are important for the restaurant to survive, they occlude tasks such as customer segmentation and resource shifting that could increase your restaurant’s market share. By adopting the newbie mentality, you work towards maintaining current clients through operational excellence while attracting future clients with radical strategies.
2. Think Radical
Here we throw away the age-old “one step at a time” and take several leaps forward. Ask yourself these questions to identify why you need to reposition your brand. What value do you provide to your customers? Are you delivering on the promise of value? What is not working – is it the whole pie or just a piece? Entrepreneurs usually adopt quick fixes to solve problems as and when they arise. Thinking radical might mean tweaking an already existing product/service to include more features. For example, you many need to include products to your consultancy service to serve clients who prefer to self-learn.
Alternatively, it might be necessary to expunge the whole feature such as, moving from brick-and-mortar to online to compete in the growing digital space. The frequency of shifts is another thing to consider as you reposition your business. Indeed, routinely making small adjustments to your business model will only contribute small incremental changes (5-15%) to your profits. However, if you want to double or triple your profit, then implement drastic strategies such as targeting new customer groups and changing your value offering