Take Advantage of Synergies to Pivot Your Small Business

Take Advantage of Synergies to Pivot Your Small Business

Making a sweeping change in the direction of your small business plan can be overwhelming. But pivoting around your company doesn’t mean you have to reinvent the wheel. Oftentimes, you can take advantage of the synergies that make the process more efficient and effective.
To do this, keep these steps in mind:
1. Take a look at the strategies you suggested for implementing your pivot and break down each into a list of detailed action steps you need to take.
This list should be as specific and comprehensive as possible.
2. Review the action plan you’ve created by ticking next to items that you can accomplish with company or employee resources, thus taking advantage of existing synergies.
3. Put an X next to the items that you really feel will ask you to reinvent the wheel – or in this case, do something the company hasn’t done before.
4. Look at the items marked with the X and think about how you can use your company’s existing strengths to make the change as efficiently and effectively as possible.
Think about resources outside your company, too, that might create synergies that could make the job a little easier — good relationships with vendors, for example, or a group of independent contractors you already work with.
5. If you think there may be synergies you haven’t tapped into yet, consider sponsoring a brainstorming session with a section of the company’s employees.
During the session, identify synergies that will help you implement your action plan.
Not so long ago, a company that made its reputation in the field of top-notch fishing gear began to consider significantly expanding its catalog to include sports equipment of many types, from swimming goggles to soccer balls. Some company executives were concerned that the change would erode the company’s reputation for quality.
They held a brainstorming session to develop strategies to avoid this predicament. Marketing experts have successfully argued that a company’s outstanding reputation provides valuable synergies. They designed advertisements for the new product line that convey the message that products are changing but the company’s dedication to quality has remained the same.
Let’s take a different example: a regional orchestra had a hard time during the recent economic downturn. When ticket sales plummeted, the orchestra made a dramatic decision. Instead of paying ticket fees up front, the group began offering free tickets to encourage people to make donations instead. The orchestra’s marketing director had already come up with a plan to create side items such as T-shirts, coffee mugs, and other items emblazoned with the group’s logo.
Instead of outright selling the items, the orchestra decided to offer it as a thank you to people who had donated $25 or more. The result: many seats were filled with people drawn to the idea of ​​a “free” concert. The orchestra’s coffers were filled with donations, and the group’s emblem began to appear everywhere. Now that’s synergy.