• Fri, Jul 31, 2020
  • 92% of US Small Businesses Have “Reinvented” Themselves During Pandemic
  • Article by Michael Guta, published in Small Business Trends on July 26, 2020.

    The fact that 92% of U.S. small businesses have reinvented themselves during the pandemic says a whole lot about this bunch. Small business owners are scrappy go-getters with no quit in them. And the survey from GetApp proves that very point.

    Small Business Reinventing During Pandemic

    According to the survey, 92% pivoted their business in at least one way, but many have pivoted in multiple ways. This means only a small minority, or 8% didn’t pivot their business at all to adapt to the current environment.

    When these businesses are pivoting, they are changing their business model on the fly. And when they do, they are hitting paydirt. One of the respondents in the survey highlights the need to quickly change a company’s business model.

    Sally Matsumae, owner of Asahi Imports, a small Japanese grocery store and delicatessen in Austin, Texas, is such an entrepreneur. Matsumae goes on to say, “With shortened business hours and everyone’s fear of leaving their homes, we had to quickly figure out a way to offer online shopping and curbside services.”

    Adding, “With the pandemic, we had to act fast. We had to scramble to get some sort of system that shoppers could use to tell us what items they wanted without having to step into the store.”

    So, what are the five business model changes that are helping these companies survive?

    The 5 Business Models

    These business models are primarily being driven by digital technology. And as the survey reveals, you can use the technology no matter how small your business. The key is to adapt to the changing conditions and implement the solutions to better serve your customers.

    The 5 Business Models are:

    1. Online delivery channel
    2. Virtual service
    3. Offline delivery channel
    4. Design a new product
    5. Target new customers

    For more information about the five business models, click here.

    Challenges of Pivoting

    GetApp says businesses that are pivoting are three times more likely to report higher revenue. Fifty-one percent say they have increased against their forecast because of the pivots. It goes all the way down to 16% for businesses that didn’t pivot.

    This, however, doesn’t mean there are not any challenges. The top challenges are lack of skills for the new approach (22%), shortage of funds (16%), and setting up new online delivery channels (14%).

    When you see your business environment changing, taking action is key. Waiting for things to get better might work, but you are not in control. By pivoting to fully address the challenges head-on will keep your business going and point out new opportunities.

    For a link to the full article, click here.

    Steve Niehaus, MBA, CBI
    [email protected]