Time to pivot? Oof. I know. | GB73

In this episode, host Illana Burk discusses implementing strategic pivots within your business. Catering to solopreneurs and small business owners, Illana explores how to recognize the need for significant changes, crystallize your unique value proposition, and align your vision with current market trends. The episode features case studies like Instagram and Netflix, emphasizing the importance of adaptability and data-driven decisions to ensure long-term growth and sustainability. Learn about evaluating core business aspects, gathering customer feedback, and maintaining consistent communication to make your transitions smooth and successful. Transform business challenges into growth opportunities with these expert strategies and tips.

For more details, visit illanaburk.com.

Good Business is hosted by Illana Burk, CEO of Illana Burk Consulting llc and strategic coach and advisor to entrepreneurs, creative leaders, and industry disruptors the world over.

For more of illana around the web:
Web: illanaburk.com
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Transcript

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Welcome back to the Good Business Podcast, everyone. I'm your host, Illana Burk, and today we are talking about the very complicated moment when you realize that it's time to make a significant change in your business or your work. And these moments are never easy. Even when they're happening on your terms, as opposed to being backed into a corner and having to change something, it can still be really overwhelming, no matter what the circumstances are. And the longer you've been in business and doing it one way and making money one way, the harder it can be to conceptualize big changes. After all, There is a really big difference between taking big swings when you are young and feisty and exploring all the things that, you know, what, does this feel right? Or does that feel right? Or what do I want to do? And how do I want to do this whole business thing? You know, do I even want to, right? There's a big difference between that. And when you're older and more established and have obligations and people counting on you and throwing spaghetti at a wall starts to feel a lot more like just wasting a good meal than a fun experimentation, right? So whatever your circumstances though, the risks and complexity making pivots is hard, right? It's just, it's hard. A lot of us really are not fans of big changes. So that is a contributor. And It can be just like a really like, bumpy and dark process, right? You're kind of figuring out what you want next while you're also trying to run a business at the same time. So today we're going to talk about How to recognize the need for a pivot. How to evaluate the core of your business so you know what to keep. How to approach researching your market to look for trends that you can potentially capitalize on. How to do a soft pivot and communicate changes. And finally, we're going to talk about how to think about embracing the whole process. So we have a lot of ground to cover today. Today's episode is not going to be magic solutions. It's much more about how to frame up the structure and the scaffolding you're going to need to be able to navigate this process without feeling like you are just groping around in the dark. So first, it is really important to actually recognize and identify the signs that a pivot might be actually necessary versus "things just are hard and I want to make all the changes," right? Those are two different things. So as you get to be a more established business owner, you don't want to make pivots just because you're bored, right? You want to make pivots when they are actually necessary because you will have to make pivots at some point or another so you don't want to waste that energy and that audience capital, doing it when it's not really necessary, when it's just something that maybe you just want to make a change, especially in, up and down markets and where buying patterns are a major change, which they are right now. So the first thing you want to do is make sure you actually need to do something different. So I have five things to look out for around this. The first is look for stagnant or declining sales. Seems obvious, but you'd be amazed how many business owners, one, don't have any actual hard data to be able to measure this. They just sort of take money in and then spend it. So you actually want to be able to track stuff. So start tracking it. If it feels like you didn't have enough money last month, and in the month before, and seems like things are just getting a little more thin, a little more stretched, start actually looking at your numbers and paying attention and seeing which way they're trending. So if your revenue has plateaued or it's taken a downturn, you might be time to re evaluate your offerings, obviously, right? The second is customer feedback or lack of effectiveness. Negative feedback or repeated requests for something that your business does currently. Or doesn't do, right? Complaints about things it does do, or asking for things that it doesn't. Those can often really indicate a mismatch between what you provide, what you think your customers want, and what they actually want and are willing to pay for. And the lack of effectiveness pieces is the really difficult one. You know, I talk a lot about objectivity in, in all aspects of your work in your business of like really being able to look at your work from the outside and take the personal charge off of it. And that is, I know, very, very difficult for those of us who are doing, you know, work that feels deeply connected to who we are, but it's never more important than when you can look at the signs that your clients aren't getting the, the they aren't getting your promises kept. They aren't getting the outcomes that you are promising in one way or another. So if you, if your work isn't landing the same way, it may mean that you have to make a pivot to how you're delivering, or it may mean that you're just offering something that, you know, might've over promised and under delivered on. Either way, changes aren't going to need to happen. So obviously customer feedback is more overt, but I want to make sure that there's a clear distinction between those things. So the third thing is market shifts. Big changes in your industry, new competitors, new emerging technology or changing technology, changing platforms that can make your current business model outdated. And this stuff can sneak up on you. Ask any copywriter if they felt like their business was prepared for chatGPT to completely eclipse big swaths of their financial stability. And this is happening in all kinds of industries, right? Like, we kind of knew AI was coming, and then all of a sudden it was here, and it affected so many of us in all kinds of ways, and will continue to do so. That's the kind of stuff to look out for. Also, changes in your industry, like, where, you know, if you are a course creator, it can get to a point where people just aren't interested in buying courses for whatever you're selling. Because maybe there's a saturation point. Maybe AI has made it easier to grasp the information that you were selling previously. So you have to have your finger on the pulse and actually see those market shifts and understand how they apply to your work. The fourth thing is more personal. It is burnout or lack of passion. Those two things are very different than that boredom thing I was talking about earlier. Burnout is where, like, you are just so exhausted, you just can't show up for another call. You can't show up for another thing, another meeting, another, another, another, right? Or where you used to just be so excited about doing the work that you do and all of a sudden you're just not excited anymore. If you're not motivated by your business, if you're not enthusiastic about showing up, it's time to look at shifting focus. Because especially those of you who are listening to my show, I mean, most of you are solopreneurs, most of you are very small businesses, you are your business. So this isn't necessarily as true for bigger businesses, right? Where they have lots of moving parts, but for very small micro businesses, solopreneurs, freelancers, it's like essential because you are your business's entire engine. If you're not happy and excited about what you're doing, nobody else is going to be. So the fifth thing is, your product or service is misaligned. If you aren't actually solving a significant problem that people know that they have, and they're willing to pay to solve, you can't keep trying to bang your head against selling it. So if you've managed to connect it with who you think is the right customer, even if it's a great fit for them, if you're offering something that they're not willing to spend money on, You're gonna have to pivot. You're gonna have to make a change because you can't make someone buy something. You have to be able to convey that it's something that they actually want to spend their hard earned cash on. So just because you're filling a need doesn't mean that you're filling the right need, that they feel an attached value to, to solving. So once you see that a change is necessary, the next step is to figure out what to keep. You do this by evaluating and identifying the core competencies of your work. And some of the best ways to do this is going back to basics and answering some of those questions that you probably haven't ever really articulated since you started or ever at all. They may have been those things that, like, you read in a blog post once about, you know, unique value proposition, but then you were like, I know what my value is. I don't have to actually write it down, right? So this might be the very first time you're ever doing that. So this is your cue to actually sit down and really write this stuff out because the act of doing so crystallizes something in a different way. I can tell you from personal experience with all of my clients, with myself, when you actually write this stuff down and it's staring back at you, you're going to find out if it's true and valid real quick. So some of those things or questions that you want to like really start to chew on is what is your unique value proposition? What is unique about you? What is the value that you're offering? And how are you putting it out to the world in a way that is something that is, something only you can deliver in a special way? And is it special enough to have enough value to warrant what you're charging for it. So then the second is, who are your ideal and favorite clients? This implies that you've had clients for a while. Obviously if we're talking about pivoting, you have some experience. You know, you have some clients behind you, some experience with pivoting. Delivering what you say you're going to deliver. So who are your favorites? You know, there's tons of really pointless exercises around target marketing. That's not what I'm talking about here. Who has the traits and the values that you most want to duplicate? That you want more and more of? And what are they asking for? And have their needs changed? If you want to keep those people, and you want more of them, it's time to look closer at the people that you really, really love serving the most. The next thing is, which aspects of your business are working really well? You know, it's really easy to just, like, toss everything out. and think that you have to just overhaul everything, but that's rarely the case. There's usually pieces of what you're doing that are working very well, but you're just kind of blinded by the stuff that isn't, and it gets like, I just have to redo everything, I have to change everything, I have to start all over, and that's It's usually sort of a melodramatic response to recognizing that a pivot needs to happen at all. So really look at what's working well, and that can be internal things. Maybe you have a really great team. Maybe you have a brand that you love. Maybe you have, a handful of clients who you feel really, really successful with. I promise you there's things that are working. So you don't want to, you know, toss the baby with the bathwater, as they say. Okay, so next up is, where are you seeing the most resistance to challenges? This is a tricky one, right? If you find yourself going, I really just don't want to do that, That's something to look closer at because anytime you have major resistance in your business it's probably a lesson that you need to learn or something that you need to pay more attention to. For me, my resistance point is always anything to do with numbers and data. I'm always resistant to it because I struggle to understand it. When I struggle to understand it, it makes me feel insecure and I don't want to look at it at all. So I make up all kinds of excuses for not looking at it. You know, I don't care about numbers, blah, blah, blah, right? We all have our things. So if I'm feeling resistant to it, it means that I have to pay more attention to it. So that, I hate that, but it doesn't make it less true just because I hate it. So for me, I pay the most attention. I carve time out to make sure I understand my data. I carve time out to make sure that I am on top of my invoicing and my numbers. And those are things that I am resistant to, but I pay attention to. So I guarantee you, if you are resistant and ignoring something, chances are good that some of your answers lie there. So pay attention to that stuff. Just a little bit more. The last thing is what is the biggest vision for the impact that you want to have? And are there ways that you can recalibrate towards that vision without tearing everything down? When you started your business, you, your work might've been directly pointed at that big vision for impact, but along the way we make changes. We make slight deviations. We, we branch off, we take side quests, you know, and you may or may not still be on that same path. And that path may have entirely changed your vision for your Work might have changed. You might have a much smaller or bigger vision than you did when you started. So figure out if there's pieces that are like, the right stones and the right path and then work backward from there and see if there's things that actually, can stay. And then you might find that everything needs to go, but you won't know until you actually break this part down. The idea of all of those questions is to identify the parts of your business that are non negotiable and then which ones are flexible. Because sometimes a pivot doesn't mean starting from scratch, but rather it just means adjusting your approach to better align with your people, and what they want and need now. Rather than what you want them to need. Those are two very different things. And you might find, here's the uncomfortable part, you might find that what they want now is not something that you want to deliver. And that requires a pivot of a whole different sort, but you won't know that until you dig into these questions. Okay, so let's assume that you've done all that now and now you're going, okay, now what, right? The next step is research. Figure out what's actually happening both in your market and with the technology and trends that affect your market. And by your market, I mean your people, the human beings that you are serving in one way or another. So after recognizing that need for pivot, it's really crucial to understand that landscape. This will help you ensure that the change that you're considering is informed by reality and not just by gut instinct or feels. You know, like this feels right. Um, unfortunately, the deeper you're in business, the less you get to make choices based on that. The more you really have to make them strategically and thoughtfully. So first up, you're going to look at market trends. What's happening in your industry? Are there emerging trends or technologies that you need to adopt to stay competitive? Keep an eye on where your market is heading. Is there some place that, like, directionally, it's about to go somewhere new? Sometimes that's where the best opportunities are. To use the AI example again, as we saw AI really starting to emerge and start taking over in copywriting, some people really got out in front of that and figured out how to master asking really good prompts, and they created courses and coaching programs to teach people how to use AI effectively. Which also highlighted the shortcomings of the technology as well, and helped their clientele better understand what AI could do and what its limits were. And how they could serve as a human being in their business more fruitfully using both the technology and their experience. Those are the people that are surviving. Those are the copywriters who got out in front, they saw something, and they moved out to meet it before the market got there. Those are the ones that are actually still making it and surviving. Everybody else kind of just got trompled. I mean, if you were somebody who was making your bread and butter, like, on 150 blog post writing, you are definitely no longer in business because that is a market that ChatGPT has totally eclipsed for free, basically. So, super bummer. You don't want to be one of those people. So the next thing to look at is, uh, for research is client issues and struggles. Deep dive into what your clients are saying, what your customers are saying. Conduct surveys, if that's appropriate, if you have a big enough audience. And I'm going to highlight that for just a second. I am actually not a big proponent of surveys for most microbusinesses because most people's lists are way too small for that to be statistically accurate information. And most people don't know how to write good survey questions. No offense. It's an art. And most of us will accidentally bias our own results. And then we'll end up with results that are both inaccurate and not enough results to actually matter in our business. So unless you're sending out a survey to at least one or two thousand people minimum, I promise whatever you get back is not something that you should make business decisions based on. It can be informative information, it can be illuminating, but you shouldn't make big business decisions based on it unless you're getting at least between five hundred and a thousand respondents. That's really where the volume starts to eclipse the, um, the bias points. And, you know, because there's all kinds of things that bias surveys like, you know, human beings are biased towards negative responses. So you really have to work at that. So don't just go off half cocked because you found a free survey software and you're like, I'll just send it out and I'll ask people and that'll solve it. It won't. So that's a big one. And that's why I'm spending a little time on it. But things that are more useful are things like interviews, reach out to your clients, ask if you can, pick their brain for a half hour, give them some of your time. Maybe you trade for an hour. If you're a coach, give them an hour of your time for an hour of their time and ask them what matters to them, use them to help you understand how to do your work better. Next is analyze social media feedback and identify your people's biggest challenges and desires there. I promise people put pain points on social media all the time. It's a goldmine for information because people put out stuff that like, Can I just vent for a minute? Can I ask this? Who's struggling with that? Look for people in your market who are asking questions like that and see if you can see some trends emerge. Finally, last thing is competitor analysis. What's everybody else doing? Not saying that you should copy it, but understanding what the people that who you're competing with are doing is going to help you make sure that you're staying competitive in the same markets. Because while most people aren't really comparison shopping in the micro business and solopreneur world, they are to some extent, meaning that they're going to other people who do similar things to what you do in the same ecosystem. So they might not necessarily be looking to directly compete, but if there's a trend in web design that's really emerged and one copywriter has it and looks really cutting edge and really with it, and your website is five years old, There might go with the one that looks slick and new. So you need to be able to make sure that you are hanging out in the same water and looking like you're at least at the same level as the people in your ecosystem who do similar things. So the next step, let's say you get through all of that and you're still like, I still need to pivot. But I still don't know how. Let's assume that you have found some good answers through all of that research and all of that knowledge building of like, okay, I have some ideas of what the problems that I need to solve that are new are. The next step is a soft pivot, right? Test out some stuff. You can launch a new thing in beta. You can do some mini version of like a new thing that's just like a little tiny piece of a bigger thing. Another thing you can do is market experimentation. If you're thinking about targeting a new demographic or changing your messaging, start with a really simple campaign on social media. Push it out to gauge interest. I have done this many, many times. In all kinds of ways. I usually start any new offer that I'm going to put out, I usually start with a post on Facebook of just, hey, I'm thinking about doing this. Is anybody interested? DM me if that sounds cool. And it's just a really rough outline of an idea and I see what bounces back. Some people ask for details. Some people make suggestions about like, that sounds cool, but I would like it more if... That sort of thing. So it's okay to test the waters before you go all in on I'm changing everything. And then of course there's the beta idea, right? We've all seen betas. Many of us have participated in them, and you may have run them in the past. But a lot of people use it as a marketing tool and I don't really recommend that. A beta should be a beta, meaning you have a mechanism and a structure baked into what the offer is to solicit feedback and to help you understand exactly what's working and what isn't. Lots of people use it just as marketing to go like, it's in beta, and it's just a reason to give a discount, but they actually are just selling it. That's not really the same thing. A beta should be something that actually has some structural mechanism and piece that helps you understand what's working and what isn't. So you need to make sure that you're covering your bases there. It can be as simple as a feedback form, but just make sure that that's part of the puzzle. So this should help you hone your thinking and look for ways to collaborate with your people and really directly relate to them on a new level. It's also gives people a backstage pass into your work, which a lot of people really like. So it can do a lot in different areas. So by starting small like that, you minimize your risk and you gain really, really valuable insights before you commit to like a full scale, look at me now, I have changed everything, look at my full pivot, isn't it wonderful? And you can make little tweaks along the way. So this means, the next step is once you're ready to fully pivot, Communication is everything. You can't just do the thing. You have to communicate the thing. Communicating is more complicated than most people really get right. Most people actually trip over this part quite a lot because when you're making a pivot, usually it's because of a, a market dip. So making more money is your primary goal. For better or worse. And, uh, that means that you're going to be prone to only thinking in sales messaging and only thinking about how do you market it. But that's a really huge mistake. If you're doing something different, the first step you need to take is internal communication. If you have a team, if you have anybody you collaborate with closely, don't just dictate what's happening to them. Loop them in on the process as early as possible. Say, I think I'm making some changes. Ask them some questions. Some of the very best insights and ideas that they give you, the people that work for you or work around you, can help you shape that pivot in a really meaningful way. And plus, a united front and having their actual buy in engagement is, like, crucial. Right? If they're not on board, they're going to drag their feet and it won't be as successful. So once you have internal communication dialed, then you're thinking about customer messaging. And this is not marketing. This is the direct communication you have with your people and your clients. You want to be really transparent with your customers and clients about why you're pivoting, what you're doing, and you want to frame that change as a really positive move toward growth and show them how your, how it will better serve their needs. Or if you're moving away from your current clientele, engage your current clientele in that shift, even if you're no longer gonna be able to serve them. Sometimes happy past clients are gonna be your best cheerleaders and your best referers when you're moving in a new direction. So engage with them. They already like you. Don't waste that. Then the final step is external marketing. So you've communicated internally, externally, and then you're actually doing the big marketing push. So that's where you update your marketing materials, you audit your website, you figure out all the social media stuff to reflect a new direction. You want to make sure that your branding aligns and so that your pivot isn't confusing to customers. That's a big one. A lot of people mess this up. Like they'll change things just on a couple of platforms and then they forget about all these other platforms that, you know, and profiles that you've created in the past that you forgot all about. You know, like, that you didn't update along the way. Um, mine, as I talked about in a recent episode, mine was on LinkedIn. I just hadn't thought to update it. I forgot about that piece when I did a big rebrand. I updated some stuff, but I didn't look close enough. So you gotta look closely because if you want to pivot, you need the credibility to carry you across all your different platforms and make it really nice and consistent. Finally! The whole process requires that you embrace the opportunity for growth first. Because while a pivot can be really, really hard, it's also a pretty amazing opportunity. I mean, when you stop and think about it, like, many of the most successful companies out there that we interact with every day have made huge pivots in their trajectory. And we just don't think about that, you know? We think about things as being, like, just what they are and their utility in our everyday life. For example, like, Instagram started as a location based app called Bourbon before they pivoted to focus on photo sharing. Another example is Netflix. Like, Netflix used to be, like, a DVD rental service, and now they're a streaming giant. Most of the people that are using it now don't even remember when it was a DVD service, and it revolutionized the market there. It was so cool. They were, like, the first of the, like, no late fees market. And I, it makes me a little sad that there's people listening to this that don't know what I'm talking about, but Late fees? What are late fees? But now, then they revolutionized in a totally different way. It is exceedingly rare for a company to do that twice. And that was because they saw a need for pivot. Think about all of the platforms that they were competing with at the same time that didn't see that streaming was about to overtake everything. Looking at you, Blockbuster. Right? Don't be Blockbuster. They came so late to that party. They came late to the mail in party. They came late to the streaming party. And they missed the boat. And now there's no more Blockbuster. So, adapting to changing conditions is absolutely everything when you're trying to build something that's going to last long term. Your business can pivot and lead all kinds of cool breakthroughs. And by approaching that process really thoughtfully and really deliberately and gathering data and staying nimble, you will set yourself up really, really well for long term growth and sustainability. Okay, everybody. Wishing you happy pivots. That's it for today. Thank you all for joining me, as always. And I will see you all soon.