How to pivot your small business model in response to industry changes
Small Biz Leader
How to pivot your small business model in response to industry changes
Discover the game-changing strategies small businesses are using to navigate industry changes with ease. This article delves into expert insights, revealing how to embrace inbound marketing, expand into niche markets, leverage AI, and more. Stay ahead of the curve and unlock success with these proven tactics.
- Embrace Inbound Marketing
- Become a One-Stop Shop
- Adapt to Tenant Needs
- Expand Into Niche Markets
- Prioritize Customer Service
- Pivot to Virtual Offerings
- Develop a Digital Platform
- Provide Comprehensive Solutions
- Leverage AI and Data
- Build Strategic Partnerships
- Diversify Product Offerings
- Focus on Online Sales
- Create YouTube Videos
- Expand Into Digital Twins
- Go to the Client
- Focus on Strategic Positioning
Embrace Inbound Marketing
As the founder and CEO of Cleartail Marketing, I’ve had to pivot my agency’s services in response to changes in clients’ needs and industry trends. A few years ago, many of our B2B clients were struggling with decreasing effectiveness of outbound marketing tactics like telemarketing and email blasts. To address this, we expanded our service offerings to include inbound marketing strategies focused on search engine optimization, content creation, and social media marketing. This pivot allowed us to provide more value to clients and increase client retention.
More recently, I’ve focused on helping clients reach new potential customers through account-based marketing. For a manufacturing client, we targeted key accounts they wanted to win and executed multi-channel marketing campaigns to those target accounts. This highly-focused approach led to $1.2 million in net-new revenue from those accounts in under 12 months.
Diversifying into new services like marketing automation and sales enablement has also fueled growth for Cleartail Marketing. Bundling these services together allows us to provide an end-to-end solution for clients looking to align their marketing and sales teams. For new clients, our breadth of services is a key competitive advantage to win their business.
The willingness to adapt to changes in B2B marketing has been crucial to overcoming challenges. Researching trends, developing new strategies, and expanding our offerings have all helped drive double-digit growth for Cleartail Marketing over the last 3 years. The outcomes have been increased revenue, higher client retention, and a more stable, diversified business model.
Become a One-Stop Shop
As the former owner of Herts Roofing & Construction, I often had to adapt to changes in building regulations and client needs. When new fire safety codes were introduced requiring fire-resistant roofing materials, we invested in the necessary training and certifications to offer these services. This allowed us to win new commercial clients and government contracts, increasing revenue by over 15% that year. We also started providing solar panel installation and green roof options to meet growing demand for sustainable building practices. Diversifying into these specialty areas differentiated us from competitors and attracted environmentally-conscious homeowners.
Within the first two years, solar and green roof installations accounted for around 7% of our total revenue. Clients increasingly requested a “one-stop shop” for their home renovation needs. We expanded to offer additional services like siding, gutter installation, and attic insulation. Bundling multiple services together at a lower overall cost incentivized clients to use us for all their exterior home needs. This model of providing full roofing and home renovation solutions boosted sales and strengthened customer loyalty. Flexibility and staying ahead of trends enabled stable growth during my time as owner. Pivoting into solar, green roofs, and a wider range of home improvement services created new revenue streams and a more resilient business model. Focusing on sustainability and becoming a “one-stop shop” were keys to attracting and retaining clients even during economic downturns.
Adapt to Tenant Needs
When the economy took a downturn in 2008, I knew I had to adapt quickly. I pivoted to focus on smaller office spaces and flexible leases. Providing more budget-friendly options allowed businesses to downsize affordably. This shift increased occupancy in our properties by over 15% that year.
As more tenants wanted eco-friendly spaces, we renovated our older buildings to meet LEED certification standards. Upgrading lighting and mechanical systems cut operating costs by 30%. We passed some of these savings onto tenants through lower utility fees. This environmentally-conscious move attracted new tenants passionate about sustainability.
In recent years, many tenants were interested in co-working spaces. We tested converting some traditional offices into co-working suites. They were instantly popular, leading us to open a dedicated co-working facility. Membership fees for the co-working space have added around 8% to our net operating income. Continually adapting to major trends has been key to overcoming various challenges in the industry.
Expand Into Niche Markets
As an insurance agency owner, I have had to pivot numerous times to adapt to changes in the industry. A few years ago, many of my clients were switching to direct-to-consumer insurance companies to save money. To combat this, I partnered with an insurance wholesaler that allowed me to offer more competitive rates. This partnership increased my revenue over 20% that year by retaining existing clients and winning back some who had left.
More recently, I have focused on expanding into new niche markets, specifically for technology startups and freelancers. I researched the unique risks and coverage needs for these industries and customized new insurance packages to meet them. Promoting these niche products through targeted digital marketing and networking has led to a 15% boost in new clients over the past six months.
Diversifying into ancillary services has also helped drive growth. I now offer risk management consulting, business valuation, and succession planning services for business clients. Bundling these complementary services together has increased client retention since many appreciate the convenience of a “one-stop shop.” For new clients, offering these extra services gives me a competitive advantage and a way to build long-term relationships.
Flexibility and the willingness to adapt have been key to overcoming challenges in my industry. Researching new opportunities, forging strategic partnerships, and expanding into related products and services have all fueled growth even as the traditional insurance market has changed. The outcomes have been increased revenue, higher client retention, and a more stable, diversified business.
Prioritize Customer Service
One of the most significant pivots I made in my business was when online travel platforms started dominating the industry. To sustain and grow, I knew I had to act fast. These platforms offered significant advantages, such as being open 24/7 and providing price matching—two things I needed to integrate into my business model to stay competitive.
I quickly adapted by offering a 24/7 service and a price match guarantee. But I realized I had one advantage over these online giants: personalized customer service. While they provided convenience, they lacked the human connection and reliability of absolute customer service. I ensured that we matched their convenience and exceeded it by offering dedicated, US-based support available around the clock.
This pivot made a huge difference. Clients appreciated the ability to reach us at any time with real human support, not just automated services. As a result, our numbers skyrocketed, and we were able to stand out in the marketplace despite the overwhelming presence of online competition.
The experience taught me the importance of staying ahead of market trends. In the travel industry—and any business—it's crucial to pay attention to shifts in consumer behavior and industry innovations. You need to know when to make strategic changes quickly to stay relevant and sustain growth. My business could have been left behind if I hadn't made that shift to offering 24/7 service and price matching. The key is constantly monitoring the landscape, adapting when necessary, and offering something that differentiates your business from competitors.
Pivot to Virtual Offerings
As a business strategist, I've helped numerous companies pivot their models to adapt to changes. Early in my career, I worked with a diagnostic imaging center struggling from decreasing reimbursements. We expanded into new service areas, like physical therapy, to diversify revenue streams. This pivot increased their annual revenue by 32% the following year.
More recently, an AI company I advised was negatively impacted when a key technology partner was acquired. We quickly focused their efforts on a new product leveraging their core tech but targeting a different market. Within 6 months, they secured $1.2M in seed funding from investors excited by this new direction.
My own companies have also adapted to changes. When demand for in-person strategy consulting decreased due to COVID-19, we launched virtual workshops and online courses. We've since tripled the number of clients we work with globally. Continuous learning and the ability to pivot strategies have been key to overcoming challenges. The companies that thrive are those able to adapt their business models based on changes in technologies, markets, and customer needs.
Develop a Digital Platform
As the demand for remote work solutions surged, we saw a shift in how clients wanted to access our transcription services. Initially, our model was focused on in-person consultations and tailored services. To adapt, we pivoted by developing a fully digital platform that allowed clients to upload files, receive transcripts, and communicate with us remotely. This shift streamlined operations and made our services more accessible to a wider audience. The outcome was a notable increase in client volume and a broader geographic reach, all while reducing operational costs and improving client satisfaction through convenience.
Provide Comprehensive Solutions
When demand for website services slowed a few years back, I shifted focus to social media management and email marketing. Adding these digital services allowed me to retain clients who still needed an online presence but had smaller budgets. Recurring monthly fees from social media and email clients now make up over 20% of total revenue.
As clients wanted more comprehensive digital marketing solutions, I partnered with experts in SEO, pay-per-click advertising, and analytics to provide full-service packages. Bundling multiple services together at a lower cost has boosted customer lifetime value by over 35%. The key was finding partners with a similar dedication to results and great service.
Most recently, live chat and video call support have been a hit with clients who want a personal touch. While time-consuming, proactively checking in and quickly responding to questions has increased customer satisfaction scores by up to 50% for some clients. For clients who highly value responsive support, the extra effort has directly translated into contract renewals and referrals. Adaptability and a willingness to go above and beyond are how I’ve overcome challenges.
Leverage AI and Data
Kellianne Fedio: Growth Alchemist for Entrepreneurs
As an attorney who transitioned into the world of entrepreneurship, I built, scaled, and eventually sold a 7-figure e-commerce brand. Throughout my journey, I learned that the ability to pivot in response to industry changes is critical to long-term success. For me, this pivot came when the e-commerce landscape began shifting rapidly due to technological advancements, evolving customer expectations, and changes in digital marketing algorithms.
Initially, my e-commerce business focused heavily on traditional sales channels and organic growth strategies. But as the industry became increasingly competitive, I knew that in order to scale, I needed to leverage the power of technology, AI, and digital marketing in a more strategic way.
Pivoting to technology and AI-driven tools to streamline operations, improve customer experiences, and make data-driven decisions allowed me to automate key processes like inventory management, customer service, and marketing analytics, which gave me the time and resources to focus on more strategic aspects of the business. I also integrated AI into the customer journey to deliver a better experience. This shift not only increased customer satisfaction but also boosted conversion rates and average order values.
Leveraging Digital Marketing for Growth In response to increasing difficulty of standing out in a saturated market, I invested heavily in advanced digital marketing strategies. I used AI to optimize ad targeting, ensuring that my products were being shown to the most relevant audiences. I also pivoted towards a more robust content marketing approach, focusing on building a brand that customers could connect with on an emotional level. By producing value-driven content, I was able to establish thought leadership in my niche and foster deeper customer loyalty.
By leveraging AI and data-driven insights, I was able to significantly increase operational efficiency, reduce costs, and scale the business at a pace not possible with manual processes alone, driving exponential growth in traffic and sales.
Ultimately, this strategic shift enabled me to scale the business faster and more efficiently, resulting in a successful exit. The key lesson I took from this experience is that staying agile, embracing new technologies, and being willing to pivot in response to industry changes are all essential to staying competitive in a fast-evolving landscape.
Build Strategic Partnerships
As an owner of a contract manufacturing business, I have had to frequently adapt to changes. A few years ago, many of our customers shifted manufacturing to lower-cost countries in Asia. To remain competitive, we invested in building strategic partnerships with trusted factories across Asia. These partnerships allowed us to provide cost-effective solutions for our customers, increasing our revenue by over 25%.
More recently, political changes like increased tariffs have disrupted global supply chains. To address this, we have helped many companies redesign products to change tariff classifications, source from alternative countries, and file for tariff exemptions. Providing this guidance on trade compliance has led to a 20% boost in new business over the past year.
Diversifying our offerings has also driven growth. We now provide services like supply chain consulting, product design, and logistics management. Bundling additional value-added services gives us a competitive advantage and higher customer retention. For new clients, these services demonstrate our capabilities as a strategic partner.
Adaptability and forging strong partnerships have been key to overcoming industry challenges. Analyzing new possibilities, building factory relationships worldwide, and expanding into related services have all fueled growth despite a changing manufacturing landscape. The outcomes have been increased revenue, higher customer retention, and a more stable, diversified business model.
Diversify Product Offerings
As CEO of FlightPlan Ventures, a digital venture studio, I’ve had to pivot multiple brands to keep up with industry changes. A few years ago, many of the DTC brands we work with were struggling with rising ad costs on major social platforms. To combat this, we helped several brands improve their organic marketing by optimizing content for search engines and improving social engagement. This increased traffic and revenue for many brands by over 30% within 6 months.
More recently, I’ve focused on helping DTC brands expand into new product categories and sales channels. For example, we helped Gardencup, a meal kit company, launch a line of ready-to-eat salads and partner with several local grocery stores to reach new customers. Promoting these new products through influencer collaborations and in-store demos led to a 25% increase in subscribers over the past year.
Diversifying into new services has also fueled growth for our agency. We now offer services like product design, video production, and branding in addition to growth marketing. Bundling these services together allows us to provide more value to clients and build long-term partnerships. For new clients, a “full-stack” agency model gives us a competitive advantage to win their business.
The willingness to pivot and adapt to changes in the DTC space has been key to overcoming challenges. Researching new opportunities, developing strategic partnerships, and expanding our service offerings have all helped drive growth for our agency and clients even as the digital marketing landscape has evolved. The outcomes have been increased revenue, higher client retention, and a more stable, diversified business model.
Focus on Online Sales
As an experienced florist running a Shopify store as well, I had to pivot my business model when the pandemic hit and in-person events were canceled. With weddings and corporate gatherings on hold, I quickly realized that my traditional revenue streams were at risk. To adapt, I shifted my focus to online sales and local delivery. I revamped my website to highlight delivery options for everyday occasions like birthdays and anniversaries, which became increasingly important as people sought ways to connect with loved ones while staying apart.
The outcome of this pivot was incredibly positive! Not only did we see a surge in online orders, but we also tapped into new markets by offering subscription services for regular flower deliveries. This approach not only kept our business afloat during tough times but also expanded our customer base beyond local clientele. By embracing change and focusing on e-commerce, we not only survived but thrived, which taught me the importance of adaptability in business.
Create YouTube Videos
When the industry landscape began shifting and competition in Google intensified, I pivoted my business model from focusing solely on written content for websites to creating YouTube videos on the same topics. This change was driven by the growing importance of video content in search engine rankings and audience engagement.
By repurposing the existing blog posts and articles into engaging video content, I was able to tap into YouTube's vast audience and leverage the platform as a powerful tool for brand visibility. The outcome was remarkable—our videos not only attracted a new audience but also enhanced the performance of our original website content. The videos gained traction on YouTube, and embedding them back into the corresponding website pages boosted our SEO, resulting in increased traffic, longer page visits, and higher conversion rates. This pivot not only expanded our reach but also solidified our business in the evolving digital landscape.
Expand Into Digital Twins
As the demand for virtual production and immersive digital experiences surged, we saw an opportunity to pivot from traditional 3D capture to creating comprehensive digital twins and virtual environments. Initially, we focused on media and entertainment, but we quickly expanded our services to industries like real estate, tourism, and education, where digital replicas offered immense value. This shift not only allowed us to diversify our client base but also led to rapid growth in new verticals. By embracing this pivot, we were able to future-proof our business and meet the evolving needs of multiple industries.
Go to the Client
I am a consultant that ran in-person workshops in my local area. My clients came to me, pre-pandemic, and we ran 2 workshops per year. I had one scheduled for the end of March 2020 when the world shut down on March 13th. I did nothing for the next year (in terms of serving clients) but then realized that going to the client was a lot easier on me. So I pivoted to going to their sites. The outcome is a lot better because, in the first model, only 2 attendees could come since we were accommodating multiple companies at once; now all senior leadership is required to be in attendance during the workshop and the decision-making and follow-through on the part of the client is much better (because all leaders are knowledgeable about the process and in agreement on next steps vs. having 2 individuals going back to their company to change processes or minds).
FYI: I do succession planning for companies, so in the first model only the CEO and HR director would come to the workshop; now I get everyone who has a "C" in their title.
Focus on Strategic Positioning
As an entrepreneur, I recognized that traditional creative services alone were no longer enough to drive lasting impact for mission-driven organizations. In response to industry changes—specifically the growing need for purpose-driven storytelling and deeper audience engagement—I pivoted our business model to focus on strategic creative positioning. Rather than simply offering design or marketing, we restructured our approach to help organizations build a solid foundation of messaging that resonates with their audience on a profound level.
This shift led to the creation of The Unless Project, our giveback initiative, which supports nonprofits by combining storytelling and strategic alignment to amplify their missions. The outcome was transformative—not only for our business but for our clients. Nonprofits we worked with saw increased audience understanding, engagement, and advocacy, which in turn fueled their growth. For us, this pivot cemented our role as a partner in driving positive change, helping us grow in both reputation and revenue.