By Richard Weinberger, Ph.D.
When a business is experiencing a decline in revenue or has simply plateaued and is not growing, there can be a number of contributing factors. A global pandemic, new competition, loss of a major customer, weak management, turnover of key employees, or off-target marketing could all have a negative effect on the growth and sustainability of a small business and be the reason for a company’s downturn. However, if the business’s products or services still provide benefits and solutions to customers and their problems, perhaps it is time to reinvent your business.
You have surely heard the famous saying “The definition of insanity is doing the same thing over and over again and expecting a different result.” How true this is for small businesses! So, when business is down or stagnant, perhaps the solution is to seek change. Maybe it means making a product or service improvement or coming up with a new marketing campaign. Basically, the alternative to doing the same thing over and over again is to take a new and creative approach.
Thinking outside of the box can produce a breakthrough change, which creates new opportunities. It is this type of thinking that is needed to rejuvenate a business. Here are five ideas for bringing positive change to your company.
5 ways to reinvent your business
1. Have a greater internet presence
Traditional, established businesses can certainly get stuck in the past while their competitors gain traction in the future with a ubiquitous online presence and an e-commerce site. The global pandemic has caused most individuals and employees to isolate to a certain degree, and also forced businesses—whether business-to-consumer or business-to-business—to operate differently than in the past. To operate in the new normal, a company needs to seek expanded opportunities on the internet.
2. Implement operational changes
Change is not only inevitable at times but also beneficial. One only has to look at practically any business during the pandemic to see how they have made operational changes. While most businesses have made at least moderate changes, other businesses have been forced to transform nearly their entire operations. Fortunately, many of these changes and transformations will make these businesses more profitable and stronger for the future.
3. Be creative with your pricing
Many businesses get in a rut, always charging the same price for their products or services. Pricing, however, does not have to be static. There can be discount pricing for sales, of course, and there also can be discount pricing for quantity purchases, second item purchases, and special day or hour pricing. On the flip side, there can be premium pricing for extended warranties and services, add-on products and services, and personalized services. Being creative with your pricing could also improve sales.
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4. Locate underserved markets and target them
It’s easier said than done, but great opportunities await small businesses that can find an underserved market, discover the needs of that market, and then determine how to best satisfy those needs. A small business can maintain its core target market while expanding into new markets, creating a unique market niche.
5. Update your company name and signage
Yes, sometimes a name and signage change might be in order. Does the business’s name and signage actually tell customers what products or services the business provides? Loyal customers may know, but what about new customers? If it isn’t clear, perhaps a new name, signage, and accompanying tagline would make it easier for prospective customers to understand exactly what the business sells.
Reinvent your business to grow your business
Rather than simply trying to keep up with the competition, a small business can develop its own unique market and branding. If a business continues doing what it has always done in the past, it will probably continue to get the same results, or even less.
Be innovative, be ready for change, try something different—and keep trying—until you find something new that works better. The future of your business just might be reinvention.
About the Author
Richard L. Weinberger, Ph.D., CPA, has over 30 years experience as a management and financial consultant dealing exclusively with small businesses, and he is CEO of the Association of Accredited Small Business Consultants. See Richard’s full bio and articles at AllBusiness.com.
This article was originally published on AllBusiness.com.