Sustainability: The Ability to Pivot

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Small business owners typically shy away from change. In fact, to a fault, many will repeat the same unprosperous behaviors while waiting for the tide to change in their favor. The most successful small business owners are adaptable and keep their "ear to the ground" so to speak. They keep up with the pulse of the community and industry in which they serve. They are not married to methodologies or policies. They, instead, are married to 'meeting the needs', by regularly collecting data and feedback to understand evolving trends and customer preferences. According to Chuck Hengel, Marketing Architects, as member of a panel for the Forbes Business Council (June 2021), "Don't be afraid to pivot. Hear all ideas out, even if you ultimately decide not to move forward with some of them."

Change is the effective tool for staying relevant and being sustainable. In today's dynamic landscape, sustainability is king. In fact, sustainability is so important that Forbes magazine (July2023) recommended sustainability as a small business core strategy. The article goes on to recommend that business owners realign their business strategies and objectives around sustainability in an effort to "bring operational efficiency, contribute to daily cost savings, enhance brand reputation, improve customer loyalty, and increase the valuation of your business."

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So, how can you tell if you are shifting with the flow, or just shaking things up with no real evidence of potential success? When is change good? When is the time for change right? And how can you know which change will be most effective? And finally, is there a time where you should just throw in the towel? These are all excellent questions to ask yourself (and hopefully a professional).

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Now, when should a small business owner consider making changes? The timing for change depends on several factors, including market conditions, competition, digital advancements, and customer feedback. And in the simplest of terms, when what you are doing is not working, or not working well enough, it is time to consider a change.

Which changes will be the most effective? Examine your competition and industry trends. Research the pulse of your target market and consumers. Analyze market research and culture shifts. It's crucial to rely on data-driven decision-making. Don't worry if you are not able to dedicate time to such a project. Professional Consultants, Strategists or Advisors are able to assess your business and identify gaps, gain insights and utilize effective and emerging trends. Before you run out and pay for marketing, branding, coders, process managers and web developers, it may be wiser to assess exactly where your business is bleeding. Even if you can improve in every area, a Business Strategist is able to determine the most effective areas to prioritize. Oftentimes, that same strategist is also able to implement the necessary change through their team or business partnerships.

There are instances where continuing to invest time and resources in a failing business may not be wise. How will you know to close your business due to lack of profitability? Measuring the effectiveness of change is essential to determining if and when you should close shop. Business owners can utilize metrics such as revenue growth, customer satisfaction, and customer traffic to gauge the impact of their decisions. Census data shows that businesses that regularly assess the outcomes of their changes are more likely to make informed decisions.

There are cases where business owners should consider closing shop. Small businesses that consistently operate at a loss and show no signs of improvement may benefit from ceasing operations, rather than sinking more resources into a failing venture. Be sure to seek professional advice with such a delicate decision. Because even if all signs point south, there

may still be something missed that can completely change the trajectory of that business, regardless of the years of operational losses.

It is critical that your business is assessed properly and without bias. Once assessed, it is up to the small business owner to effectuate the necessary actions and improve upon the core strategies of your business.

By conducting thorough analyses, businesses can pinpoint areas where organizational change can make the most significant impact. Continuous monitoring enables companies to identify the most effective course of action, which may involve operational improvements, marketing enhancements, operational adjustments, or even product and service innovations. It could also involve closing up shop or selling the business. Business viability is not always permanent. Either way, an effective small business owner is always available to adapt to ensure prudence and profitability.