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3 things to consider before you pivot your business model

(BUSINESS ENTREPRENEUR) Many businesses have had to pivot during the global pandemic but maybe yours isn’t one of them. Consider these questions first!

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Two women working at a laptop, no need to pivot business.

When Ross asked Rachel and Chandler (Friends TV show 1994-2004) to move a couch, many of us will never forget his voice inflection and how many times he yelled “PIVOT”! It’s actually a really funny scene and if you’ve never seen it, it might be worth 3.5 minutes of your time. Ross had the best of intentions by starting with a sketch and enlisting help from friends but even that ends up in hilarity as getting his couch in to his apartment doesn’t work and he ends up being offered $4 when he tries to return it (stay for the end of the clip).

The best plans and intentions for your business are often met with what the market and customers demand, where technology grows, and where your ROI is the best. You often know that your original plans will grow and evolve, even in uncertainty and now… a global pandemic.

Many entrepreneurs and small businesses have had to lean on technology to add virtual services (or expand their offerings) to meet our current norm where people are just not out and about like they used to be. Some have seen this work well and others have had to completely re-design their offerings to maintain safe and socially distanced considerations.

The thing is, businesses that have pivoted are being highlighted. But it is also worth looking at what has worked for some businesses that didn’t have to completely shift their strategies in 2020. It is likely that they had to adapt but maybe not a ridiculous Ross-type “pivot” that resulted in a complete failure of the mission.

Harvard Business Review shared an incredible article, “You Don’t Have to Pivot in a Crisis” with great insights about what to consider if you think you need to make changes or if you want reassurance you are still on the right track.

The HBS article shares a powerful thought:

“The lesson here is that when a crisis hits, it pays to resist knee-jerk reactions on how to handle external shocks and ask what is going to work best for your company, based on the particular realities of its business. Ignoring the playbook of rapid cuts plus strategic pivoting can be the smart move… However, staying the course doesn’t mean inaction.”

Here are three thought starters you may want to consider for your business:

  1. What product line or service is best serving your customers right now? Is that one of your strongest and/or could it use some attention?
  2. What product line or service is not quite meeting your needs or customer demands at the moment that had seemingly always worked (not forever! Just right now)? For example, in person gatherings and promotions like events, conferences, trade shows.
  3. Is there something you’ve always wanted to explore? And could now be a great time since people want things more virtually? Examples: Selling branded swag, workbooks, content subscriptions, educational webinars.

These are three simple things but could help point you in the right direction of where to focus your time and energy – at least for now. You may not need a complete re-design or to take a new road, it might be some tweaks and adjustments to hang on to what you’ve worked so hard to build.

Erin Wike is a Career Coach & Lecturer at The University of Texas at Austin and owner of Cafe Con Resume. Erin is fueled by dark roast coffee with cream AND sugar, her loving husband, daughter, and two rescue dogs. She is the Co-Founder of Small Business Friends ATX to help fellow entrepreneurs + hosts events for people to live a Life of Yes with Mac & Cheese Productions.

Business Entrepreneur

This app lets you swipe right on the co-founder of your dreams

(BUSINESS ENTREPRENEUR) It’s said that business can be a lot like dating – and Tertle is taking advantage of that to find you a vetted, high-quality co-founder with a few swipes.

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Two men standing in meeting room with others, shaking hands as they agree to be co-founder together.

Much like there is a dating app for every romantic match possible, there is now a way to match with your ideal co-founder. And the name will help you ease out of your shell when connecting with your new partner.

Tertle is a new online app that helps you find the co-founder that best suits your needs. According to developers, “Tertle sends you frequent, vetted, high-quality co-founder matches via email or WhatsApp based on things that matter to you – giving you precious time back and putting an end to endless profile crawling.”

So how does it work? Like any other matching app, you first start by creating your profile. Tell Tertle a little bit more about you and what you’re looking for in a co-founder.

Next comes the vetted matching. Tertle will match you up based on things you both care about – like your skill sets, location, values, and interests. Finally, you connect and chat. Receive weekly 1:1 video chat calendar invitations at a time that suits you.

When answering why Tertle was founded, developers wrote, “We, like you, are startup fanatics. Finding the right co-founders is one of the most important decisions you’ll ever make in pursuit of a successful venture. We think there’s nothing currently out there that really hits the mark in helping like-minded co-founders easily connect—and so, Tertle hatched.”

As a reviewer pointed out on Product Hunt, the safest (and most heard about) route when selecting a co-founder is to choose someone you went to college with or have a long-standing relationship with. However, this may not always be an option and so it’s nice to have a little help from profile-matching algorithms.

Tertle developer Ryan Connaughton appreciated the Product Hunt feedback and expressed the following, “In terms of the algorithm, I’ve been matching people manually to test the waters while also working on a simple algorithm as MVP (what skillsets they’re looking for and location IF thats also important to them).

Following an MVP, my thinking is I can vet harder with more in-depth data collection (personality types, values, problems spaces of interest, etc). Of-course this will require a much deeper user-research/spike piece first before I can get to the right solution.

In addition, there can only be so much ‘filtering/vetting’ you can do before you have to get some hard validation that this is the right person – that being, actually working together. So assuming that I can get the prerequisites above right and there’s interest, I think there’s then potential of guided mini-hackathon style projects or some kind of ‘trials’.

Worst case scenario: You meet someone new, learn some stuff, give each other feedback for you to grow and have fun building something. Best case scenario: All of the above, plus the problem/solution holds water and/or you form a continued lasting relationship.”

The site boasts being free to beta users forever; so, if you’re on the hunt for a co-founder, it may be worth it to join the waitlist and see what’s out there.

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Business Entrepreneur

Freelancers, this social site seeks to skyrocket your networking experience

(BUSINESS ENTREPRENEUR) Contra promises freelancers a new way to flex their experience by leveraging professional relationships in a bold take on networking and – at its core – hiring in general.

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Birds eye view of two women networking at a table with colorful interconnecting pattern on a concrete floor.

In the modern technical world, freelancers act as nomadic one-off hires that come aboard to complete a job and then are released back into the void. The rise of the gig economy and similar services has delivered new opportunities for those who need work and those who want to provide it, with entire platforms built around this idea of temporary employment. This is certainly viable and has given individuals more reach than ever before across networking systems.

However, these services tend to have some limitations – each job is isolated and usually cannot guarantee follow-up work with the same company. Workers may not be building themselves up meaningfully – lasting relationships with businesses aren’t guaranteed, interactions with colleagues might be brief, and long term freelancing might be viewed negatively. It can function alongside a career path, but is not necessarily a replacement for it (or at least is more difficult).

Maybe this could be blamed on the status quo and attitudes regarding employment, where extended tenure at the same company connotes loyalty and merit. There’s been some push against this in recent years given the way widespread platforms have enabled job seekers, but the hesitancy remains. Corporations want to hire quality candidates, but favor in-house employees that have proven themselves.

This is where Contra comes in, aiming to improve how freelancers function in the greater context of their industries. Based on their pitch, it does this by first placing a larger emphasis on networking, and then uses this as a way to reframe how we think about freelancing’s efficacy. Contra suggests that professional relationships hold more significance than traditional metrics. After all, referrals are king.

Put another way – people are your best bet to securing continued and new jobs, so let’s turn away from things like how long you’ve been somewhere and instead favor referrals, offering a path to focus on what you’ve done. As co-founder Gajus Kuizinas says, “…We are giving people the tools to describe their proudest career moments, publicly thank the people with whom they’ve worked with, and begin accepting inquiries for future opportunities.”

The hiring process might need a modern refresh

Maybe Contra isn’t saying it in so many words, and perhaps this is a harsh way to think about it, but maybe our current models for evaluating employment are misguided. There’s an emphasis placed on working at the same place for an extended period of time and at prominent companies. Those aren’t bad indicators by any means – there is something to be said for working at well known and established corporations.

But this can be hazy and gloss over what exactly someone did, which can hurt or diminish their contributions. If we focus on the positive, proactive question here of hiring qualified individuals, then what is the best thing to look at? The work.

Nothing is as accurate as looking directly at the results someone has produced – that is what matters. Quality outweighs where you were or how long you were there. Turn the attention away from “this is a series of one-off projects all over the place” and instead zero in on how all of those things best represent someone’s skill set.

This brings up a second problem – how can you best show this when trying to get new gigs? Sometimes a portfolio can’t speak primarily for itself, or legal contracts prevent divulging assets, or someone may not be the best at selling themselves. Even with a killer inventory of projects, there are still hurdles to overcome.

A one-two punch: Looking directly at what matters

Contra has a solution for this – flex those high profile relationships you’ve made. If you’ve got people eagerly talking about what you’ve done, they absolutely will show off your work. And they’ll do it with a level of excitement that will make a solid and lasting impression. After all, they’ve already received the fruits of your labor, and they’ll happily talk it up.

It’s a brilliant approach that puts a bigger emphasis on reinforcing your experience through the use of those around you. Contra’s solution is elegant – let’s allow our users, contributors, makers, and freelancers have access to a platform where they can build out a network of people who can vouch for them, and then actively utilize that social aspect. Keep your resume and portfolio, sure, but use it in tandem with those who will elevate you.

It’s a move toward something more alive.

Contra’s Community Lead explains, “Before joining the Community team at Contra, I was a freelancer who desperately wanted to make new connections with clients and other freelancers. Though — don’t get me wrong, I didn’t just want to network for the sake of networking. I wanted to make relationships with people who I could learn from and be inspired by. When using other freelancing sites, I realized I needed more from these platforms, not a quick one-off project with strangers (I don’t dig transactional interactions).”

It’s like a supercharged LinkedIn – instead of just listing out a bunch of static bullet points and hoping that coworkers drop by for a kind word, Contra’s hope is to take that latter part and make it the central focus. It’s a one-two punch of having a network of willing hype people alongside a portfolio and/or resume. This can include other freelancers, established employees at respected companies, or even well known veterans striking out with new startups.

The benefits don’t stop there – now a freelancer has greater access to mentors and inroads to bigger companies. Contra is providing solutions to things that plague the independent consultant route by creating support during all parts of the networking process – education, securing relationships, building upon past successes, improving a portfolio, and creating a network of reliable, helpful colleagues. It is empowering a freelancer to realize their true potential.

Voice over text

By providing a social backing component to the networking, job hunting, and freelancing process, Contra effectively resolves many of the shortcomings such a career path might adversely afford. It helps build out a way to repeat contracts, levels the playing field by projecting experience and results, and provides ways toward self improvement. It gives voice to someone by building up a support team – there’s safety and strength in numbers.

In a way, this feels like a modern and refreshing take on the freelancing process – something a bit more real and personal in the business world. We are social beings – let’s let others speak for us at times, even when it comes to our professional lives.

In a new world where there are dozens of communities, why shouldn’t there be one more devoted to the job search and hiring process? Contra’s platform may deliver just that to networking as a freelancer. It will be exciting to watch.

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Business Entrepreneur

Why and how to acquire a business – 4 tips for radical success

(BUSINESS ENTREPRENEUR) Acquiring a business can be a key part of your business’s future growth, but there are some factors you should consider before signing the deal.

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A meeting room with people shaking hands over acquiring a business

Growing businesses have multiple levers that can be pulled separately or in unison to continue scaling and expanding. And while many companies choose to grow internally, there’s always the option of acquiring other businesses to supercharge results and instantly expand.

Why Acquire?

Acquiring a business is certainly a complicated path to expansion, but it’s also a highly attractive one for a variety of reasons. This includes:

  • Increased market share. If you’re acquiring a business that happens to be a competitor, you can instantly increase your market share. If you currently own 20 percent of the market share and the competition has 15 percent, you suddenly catapult to 35 percent. That might make you the industry leader overnight!
  • Expansion into new markets. Sometimes you acquire a business outside of your industry or niche. In this case, it allows you to expand vertically or horizontally. This can improve top-line revenue and/or reduce costs and benefit profit margins.
  • Advanced tech and IP. In some situations, an acquisition is about acquiring a specific piece of technology or intellectual property (IP). This may prove to be the final boost you need to accelerate growth and initiate further expansion.
  • Talent acquisition. One of the secondary benefits of an acquisition is the opportunity to welcome new talent into your team. Whether it’s a seasoned executive or a highly effective sales staff, this is one benefit you can’t ignore.

Mergers and acquisitions aren’t the correct solutions in every situation, but they often make sense. It’s ultimately up to your team to sit down and discuss the pros, cons, opportunities, drawbacks, and possibilities of pursuing this option.

Helpful Acquisition Tips

Should your business choose to move forward with the acquisition route, here are some essential tips to be aware of:

1. Assemble a Talented Team

Don’t do anything until you first develop an acquisition team. This is a very important step and should not be delayed. (Many businesses make the mistake of starting the search and then forming a team on the fly, but this results in missed opportunities and foundational errors that can compromise an otherwise smart acquisition.)

A good acquisition team should include an experienced mergers and acquisitions advisor, a responsible executive, an attorney, an HR professional, and an IT expert. You’ll also want to bring on a public relations professional as soon as possible. This will ensure you control the messaging that customers, investors, and even employees hear.

2. Do Extensive Due Diligence

With the support of a talented dream team, you’re equipped to find the best acquisition opportunities. As you narrow your targets down, you’ll want to identify and implement a very detailed due diligence process for acquiring a business. This may include an extensive, objective analysis that consists of a letter of intent, confidentiality agreement, contracts and leases, financial statements, tax returns, and other important documents.

3. Make an Initial Offer

If the due diligence checks out, then it’s time to work on formulating an offer for acquiring a business. While the first offer almost certainly won’t be the offer that gets accepted, it’s the single most important offer you’ll make. It frames the transaction and sets the tone for the rest of the negotiations. It’s generally a good idea to offer no more than 75 to 90 percent of what you’re willing to pay. It should be low enough to leave room to inch up, but not so low that the other party could potentially see it as an insult.

4. Negotiate

Your first offer won’t get accepted. But unless you’ve totally insulted the other business, they should come back with a counter. Now is where things get really interesting. Negotiations ensue and it’s time to counter back and forth. The offer consists of a variety of elements – not just a price tag – so consider all of these variables in your subsequent counters.

Adding it All Up

As valuable as an acquisition can be, the process is often filled with friction. It’s up to your team to make the transition after closing as smooth as possible.

It’s very important that you respect the products, services, employees, and customers that the acquired business has. If you come into an acquisition and attempt to shake things up on day one, you’re going to get backlash. There’s nothing wrong with making changes – you now own the business – but be diplomatic and patient. Build trust, work together, and gradually introduce changes.

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