How Melbourne Business Owners find opportunities in difficult situations

“You may encounter many defeats, but you must not be defeated. In fact, it may be necessary to encounter the defeats so you can know who you are, what you can rise from, how you can still come out of it.” — Maya Angelou

Successful entrepreneurs get to where they are now because of their determination to reach their goals, which includes braving the odds and overcoming hurdles. The recent global scenarios in the past two to three years have been very challenging. Many business leaders have looked into finding opportunities under tough situations. But how do you do it?

Look at the present needs where you can provide a solution

Entrepreneurs have shared how their businesses fill a gap. Dion Castle, CEO of Struber, said, “With the fast-changing environment in society and the world, in general, it is easy to see that the culture, technology and customer experience in our industry were due for an upgrade.”

But when the conditions of a society change, the needs of society also change.  If there are difficult circumstances, how can your business help in this time of need? Are your products and services relevant in such circumstances? It is good to look into new problems that arise and find the areas where your business can offer a solution.

Be open to new creative ideas, innovate and pivot

Unexpected things happen, so when a crisis arises and you hit a wall, take advantage of this hiccup to go back to the drawing board and revisit your plans and current offerings. This is where innovation comes in. Brainstorm for new ideas that can help boost your enterprise and make it thrive when the going gets tough.

Nitasha Badhwar, Co-founder and Chief Strategy Officer of Sunpower Renewables, shared that “Innovation for us is more than just implementing new technology, solution, or process. It is our culture and one of our cornerstones – something that we come back to in good and bad times.”

Also, opportunities open up when you pivot. Arosh Fernando, Creative Director of WooHah Productions, once shared the changes they had to do within their business to keep them going during the lockdowns. “All these changes helped us, as we would have no income if it wasn’t for these pivot ideas. We have managed to claw up to 20-30% of our monthly revenue,” Arosh said.

Keep an eye on new markets

It is often said that “when one door closes, a window opens.” A crisis or a setback can be a turning point where new opportunities are formed. Look where the resources go. Observe the trends and be ready for new markets that will emerge.

According to Clayton Cross, Head of Strategy at Expia, “The pandemic has opened hundreds of opportunities. Most golden. Essentially new markets have been created, especially in the environmental, social, and governance (ESG) space, which we are targetting.”

Offer help and strengthen relationships

When problems and adversities arise, that is the best time for everyone to help each other and work together to overcome the challenges ahead. The pandemic has shown how important relationships are – within the family, among friends and even with people you meet through your business. 

Ben Beattie, Managing Director of True Blue Plumbing Australia, talked about his experience. “When they shut down construction in Victoria, we had 10 plumbers a day off work with only enough emergency work for 12 guys. This was the week the earthquake hit and thousands of insurance claims were lodged. We contacted our major clients and offered to assist them with virtually assessing all the damage from the site back to their head offices as they were swamped with work. We were able to keep 3 additional guys busy for the final week of lockdown reducing to major financial losses we were incurring.”

We never run out of opportunities. The important thing is to look out for it at all times or even create those opportunities when you can.

How to pivot a business

During interesting times, such as a global pandemic and an economic crisis, some industries and businesses suffer due to little, no or negative growth. It often happens during normal days as well, when the market does not seem to be enthusiastic about a brand or certain products or offerings. There are several moments when a business hits a plateau or reaches a downward slope. When this occurs, maybe it’s time to revisit your goals and if you need to do a pivot.

Pivoting is an option to save your business from eventual failure. If you do it at the right time and proper strategy, you may be able to even grow your venture. While it may not be easy to do a turn, especially if it’s something that may not be aligned to your core products or services, it is an opportunity to test your flexibility and resourcefulness.

The question is how do you pivot? How do you decide what kind of new offer should you be doing? How do you get out of the mould and institute changes in your business?

Assess your talents and assets

Have an inventory of your assets and talents. Maybe you can use your raw materials and turn them into something else that is unique, affordable and marketable. What are your other skills and talents? You can probably turn a business out of it. If you have hobbies and you are good at them, you can consider creating a business out of those. See how your other resources and talents can respond to a need in society. Some businesses are born out of necessity, while others are built because of ingenuity, generating new interest from the public.

Look at opportunities for new demand

Feel the pulse of your customers and see what keeps them preoccupied or if there’s anything that can make things easier for them. The best way to pivot is to create new demand for your market. Find gaps in society and evaluate how you will be able to fill that gap. Opportunities usually come in areas where there’s most need, so keep your eyes open for them. Some of them may be unrelated to your current offering. Look beyond what you currently have and view the scenario from the eyes of your current and prospective clientele.

Explore the digital world

Take advantage of modern technology. If you can bring your business to the realm of the digital space, you can probably come up with tons of possibilities to pivot your business. Transactions are done faster online, and with the occurrence of the pandemic, more and more industries are turning to the virtual world to deliver the services they can offer.

Innovate your business model or offerings

Is your business model still working? Are your products and services in demand at this time? If the answer to both questions is “no”, then probably it’s time to rethink your strategies and approach. Brainstorm with your team and assess how you can innovate to pivot your venture. You can bring your products a notch higher by innovating or introducing something novel to your clients.

When your business hits a wall, find ways how you can go over or around it. Look into how businesses that have successfully pivoted did it and learn from their best practices. There are many ways to pivot. Be creative. Consider carefully various alternatives and plan your next steps towards achieving your goal.

Pivoting in the entrepreneurial world

Have you ever walked down a road, so sure of your direction only to find out midway that you’ve taken the wrong path? Even in the entrepreneurial journey, mistakes and change are bound to happen. The initial goal may no longer be viable under the present circumstances, and a crossroad of choices appears before you. You can give up, continue with your original intent but with a few tweaks, go back to the beginning and redo things, or pivot and make a major overhaul of your business.

Pivoting is an option that some startups choose when faced by dangerous entrepreneurial waves. Unfavourable situations can take a toll on your business. For example, your numbers are hitting red, customers are not buying your product or service, or your business is no longer staying relevant. These are some conditions wherein you need to take a step back, review your business plan and ponder if you need to pivot and take some drastic measures in your venture.

A word of caution, however, because pivoting does not necessarily lead to the road of success at all times. It is never easy, but if business owners traverse through the shift carefully, pivoting can be their lifesaver. First, you need to look at a few things before you make a risky move in your enterprise.

Vision and goals

Is your business direction still leading you to your goals? Is your vision still relevant to the changing times? These are a few questions you need to reflect when you are thinking of doing a pivot. You have probably determined that something’s amiss, which led you to a decision to pivot your venture. Go back to the basics and revisit the purpose you want your business to pursue.

Funding

Do you have enough resources to do the pivot? The changes you have in mind may be costly to execute, so you have to weigh things based on your capabilities and funds. Calculate first how much you need to invest and the amount required to get you going for a year or so. Otherwise, you may just hit a blank wall if you don’t have enough fuel to run your business on a sharp turn.

Partners and team

Are your family members, business partners, investors, colleagues and team members supportive of your decision to pivot? Remember that the alteration of your business route will also affect other people’s lives. There may be resistance, and you might have to let go of some people. Still, it is important to keep people engaged to your cause because it will be difficult to make the shift if you do not have people behind you to help you carry the weight that comes with the change.

Target market

Will your prospects, customers and clients be receptive of the new course you are taking? Don’t forget to employ market research before you take the initial step to pivot. Some businesses experience failure because they have not made a thorough study of their internal and external environments. Data and information will be your tools to effectively plot the next steps towards the new path you are taking.

Competitors

Can you compete with other players in the industry? Will you be able to carve a niche for your business in the space where you are operating? Gauge the positioning that your business is capable of taking in the market pie. Envision how you are going to survive in your industry and make your way to the top. Your pivot should give you a higher chance of capturing a better place in your field.

Certain brands achieve success because of an effective pivot that they did to their business. Cover all bases and look at things from different angles. Gather some confidence and wisdom from the stories of entrepreneurs who have made a successful shift in their businesses. In the end, you’ll never really know the outcome unless you take the plunge and try it. Who knows where the other road will lead you? Just keep moving forward until you reach the destination you have in mind.