How To Effectively
Re-Invent Your Business
25 October 2022 | Written by Grace Mmela
Innovation and invention are hot topics amongst business leaders. However, when we are dealing with crises, changes, or underperformance in business these topics are often at the bottom of their list. Yet if embraced, innovation and reinvention can be the key to success in our businesses. Here are some tips on how to reinvent, grow or improve your business!
1. Analyze and re-imagine your business models
Knowing when to take the plunge and reinvent your business is essential. You need to constantly analyze your business, its sector(s), customer-behavior trends, and the larger economy to identify and quantify both threats and opportunities. That way, you can develop a tight business case for change based on facts, and that has increased the chances of business success. Focus on your current situation and then make a decision accordingly. Remember, reinvention and innovation can take many forms, from shifting toward emerging areas to changing the core of the business. Determine the kind of changes you want to make, substantiate why those changes are chosen changes, and use this as a guiding principle to setting and creating your new goals.
2. Communicate any changes
Put a high value on your people, and communicate future changes early. If people don’t feel safe, and the lines of communication aren’t flowing, other progress can’t happen. Seek regular feedback from employees, customers, and other stakeholders. Open different communication channels so people can reach out in the way they feel most comfortable with. You want your message to ensure the new direction will keep the reputation of your business intact, and still earn a positive rise out of the public and out of your potential customers.
3. Focus on differentiation
There’s little point in re-inventing a business if it’s not going to be dramatically different from what you had before and what’s already out there in the marketplace. Any plan to reinvent a business must “identify ways in which you can differentiate that new offering or product."
Here are some factors to consider in your reinvention strategy:
Quicker, more efficient ways to offer the new offering to the customer
Ways to create a high-level customer buying experience for the new offering
Proving a wider array of product options.
Generating a higher volume of sales at reduced prices.
Remember that a unique selling proposition that is well articulated always provides an immediate response to a customer's question: “Why should I do business with you instead of one of your many competitors?”
In conclusion, reinvention doesn’t mean tossing out an entire business model. If certain processes and systems work well, they can likely be adapted to the new undertaking changes. In this whole process, our belief is the key to a successful reinvention is to think smarter, not harder. Test the new direction before you commit on a large scale. Allow yourself time to measure the results of your efforts and adjust accordingly. Think about what skills and resources you need to turn your vision into reality. In the long run, these changes can pave the way to success.