Extraordinary Business Model
The business world is always changing. What worked a few years ago may not work today. This is especially true during a crisis. This is what the pandemic has taught us.
In order to survive, businesses must be willing to pivot and change their business model. During a crisis, many enterprises have succeeded by just doing so. However, we've also seen how even established businesses failed.
Borders shut down all of its retail shops and sold off its customer loyalty list, which included hundreds of thousands of names, to competitor Barnes & Noble for $13.9 million.
Tower Records was one of the first to conceive of the idea of a retail music megastore, but it could not keep up with digital changes such as music piracy, iTunes, and streaming platforms like Spotify and Pandora.
Compaq was one of the world's most prominent PC manufacturers in the 1980s and 1990s, but it eventually fell behind competitors like DELL in price competition and was bought for $25 billion by HP in 2002.
What is common among these three companies?
They all had extraordinary business models when they were created, but they eventually failed to keep up with the times and were forced to pivot or be acquired.
In today's business world, it is essential to have a growth mindset and be willing to pivot your operation in order to stay ahead of the curve. The pawn business that survived the pandemic learned how to operate during and after the pandemic and grew its operations!
What can you do to not only protect your company but also develop it as a pawnshop owner or manager?
Here are three things to keep in mind:
First, extraordinary businesses don’t stay extraordinary by resting on their laurels. They have to continue innovating and evolving their business model if they want to stay ahead of the competition.
Second, even the most successful businesses can be disrupted by new technologies or changes in consumer behavior. It’s important to always be aware of these risks and have a plan for how you would pivot your business if necessary.
Third, pawnshops are unique businesses with a lot of potential for growth. There are many ways to grow your pawn operation, so don’t be afraid to experiment and try new things. (Check Pawn Profit Pillars on the specifics if you're lacking clarity as to how to improve your leadership, marketing, strategy, and customer experience.)
PIVOT!
Pivoting your business is not an easy decision, but it can be the difference between success and failure. If you are facing a crisis, don’t be afraid to change your business model. It may just be the thing that saves your business.
Extraordinary businesses succeed by taking risks, being adaptable, and always looking for ways to improve. Pawnshops have all of these qualities and more—so if you’re thinking about pivoting during a time of crisis, remember that you have what it takes to succeed.
Pivot Tip #01: Understand Your Customer Base
The first step to successfully pivoting your business is understanding your customer base. Who are they? What do they want? What needs are not being met? Once you have a good understanding of your target market, you can start thinking about how you can better serve them.
Pivot Tip #02: Don’t Be Afraid to Take Risks
In order to pivot your business, you have to be willing to take risks. This can be scary, but it’s important to remember that without risk there is no reward. If you want your business to grow, you have to be willing to try new things and step outside of your comfort zone.
Pivot Tip #03: Be Flexible and Adaptable
Being flexible and adaptable is key for any business that wants to pivot successfully. If you’re able to quickly adjust to the ever-changing landscape, you’ll be in a much better position than those who are stuck in their ways.
Pivot Tip #04: Think Outside the Box
When you’re trying to pivot your business, it’s important to think outside the box. This means coming up with creative solutions that nobody has thought of before. If you can do this, you’ll be ahead of the competition.
Pivot Tip #05: Stay Positive
It’s easy to get caught up in the negative when things are tough, but it’s important to stay positive during a crisis. Remember that this is just a temporary setback and if you keep your head up, you’ll be able to weather the storm.
CONCLUSION:
In conclusion, businesses that did not just stick with their old business model but transformed it and pivoted during a crisis were more successful than those that didn't. This is because they were able to grow, adapt to the changing landscape, and come up with creative solutions.
Please share this article if you found it helpful. :)
References:
10 Companies That Failed To Innovate, Resulting In Business Failure | Collective Campus. (2020). Collectivecampus.io. https://www.collectivecampus.io/blog/10-companies-that-were-too-slow-to-respond-to-change
“Blog - Pawn Leaders.” (2017). Pawnleaders.com. https://www.pawnleaders.com/blog
Yigal Adato
Yigal is a 3rd generation pawn broker, and is now a mentor, coach and educator with the pawnbroking industry.
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