How well suited is your product to the evolving market?
Finding the demand for your products or services probably didn't seem difficult during the early days because you were likely to solve only a few problems. Even then, examining product-market fit is not a one-time box to check. It's an ongoing assessment of how well you are solving your customer's problems and a method for evaluating whether or not you're staying abreast of their current demands.
According to recent reports, 42% of businesses fail due to poor product-market fit. Whereas the ability to pivot only accounted for 7% of business failures.strategy need to change in the short-term to increase volume? Surveying customers or exploring strategic partnerships is a great way to gain perspective into how customer needs are shifting.
Assessing this demand during an economic crisis is a bit more complicated, yet a criticalstep to take now. In times of shrinking revenue, it's essential to adjust the spend on costs such as inventory or piloting new initiatives, to better assess where your product fits in a different economic climate.
A general rule of thumb to follow, "If it didn't make sense before, it likely won't make sense now,” says Jemeyson, “it's about sustaining business, not quick wins right now."
Now is the time to question how your product offering needs to evolve. Does your pricing strategy need to change in the short-term to increase volume? Surveying customers or exploring strategic partnerships is a great way to gain perspective into how customer needs are shifting.
Are you financially prepared to re-write contract agreements for customers?
As uncertainty looms, many businesses have experienced customers seeking flexible terms or arrangements with their usual, non-standard agreements. While this pandemic has exerted an unexpected pressure to meet them where they are, you need to know up front what you can and cannot agree to.
The key to finding a comparable solution is to be proactive in how you will have the conversation to sustain value and gain market share. Consider what part of your standard contracts such as bundle agreements or volume-based pricing are you able to compromise short-term. Brands who succeed at maintaining long-term value with customers explore strategies like offering alternative promotions on flexible payment terms or credits towards future purchases. Preparing questionnaires through tools like Typeform can help you streamline inquiries by sharing a link to customers. Dedicating team members to have conversations will help ensure they feel supported.
Whatever the makeup of your unique set of challenges, positive business recovery starts with having an informed plan of action to improve upon the current moving pieces. From there, you'll create a sustainable financial plan to navigate uncertainty and retain steady revenue. As always, we encourage you to engage with your business advisor or fellow business owners to get ideas. If you don't have one, feel free to book a quick call with us today and we’re happy to discuss your situation.