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H ere is another broad industry example to set up the “repositioning” picture and burn it a little deeper into your mind. In normal times, every spring, the major cruise ship lines offer what are known as “repositioning cruises.” These are special, extended cruises that offer the vacation seeker a long cruise at a bargain price. These “repositioning cruises’ were not offered to attract customers but are part of the normal seasonal relocation of cruise ships so as to take advantage of better weather in different parts of the world.

So, before hurricane season hits in the Caribbean, the cruise lines reposition their ships to the Mediterranean where the weather is better, and demand is stronger. And when the weather in the Mediterranean gets cold, the ships are relocated back to the Caribbean.

Do you want to operate your business in a massive “market equivalent” of a hurricane or do you want to find the sunny weather? It is all a matter of strategic positioning—using assets in the best possible way.

Seasonal repositioning was a normal part of the cruise business before the health scares that almost killed their businesses, so, can you imagine what types of discussion major cruise lines had to have when their businesses were shut down by the outbreak of a disease that was no fault of theirs … but stopped all customer activity? The least of their concerns would be a potential hurricane that they might be able to steer around. They had to look at what amount of business revenue they could generate. What could they do to gain attention to what they offer and how do they convince customers to trust them? You must do the same thing!

Fortunately, few businesses have this type of extreme business disruption for the length of time that the cruise industry must anticipate after a health scare. But the question remains. How should you first define your business and then how can you effectively reposition it in a vastly changed marketplace?

Every business owner must think about this and consider the benefits of repositioning their business to address directly or to create new market opportunities. This is the critical recurring process of planning to move from where you are now to where you want to be.

A small example might be to totally eliminate all inventory in a particular product group from a vendor. This might be done to radically change offerings or to reduce the number of vendors so you can concentrate your purchasing power. When you are making such a dramatic change you might sell the inventory you are holding at cost. Then use those funds to reposition your future offerings or to shore up your balance sheet.

Clearly, any actions in current inventory can contribute to both your survival plans and your foundation building phase. Actions here should help you prepare for the development of a new “picture of your business” for the future and provide cash flow in the near term.

Do not go too deeply into your planning until you make a full assessment of what business you want to be in “tomorrow” while the marketplace continues to transform. To do this, to accomplish your repositioning, you may have to, at times, drastically change daily business operations. The scope of your transition may shock many of your customers and employees, but those who have a greater understanding of today’s business pace will know that it is just a part of your evolutionary drive.

You may have products or services that you do not want to handle in a changed marketplace. So, consider putting those parts of your business up for sale. (Do it carefully, confidentially, and with the right advisors.) You may not know who would be interested in buying the product group and the associated inventory. For someone with the right complementary product mix, your product group can be one of the keys to resurrecting their business.

When it comes to choosing a potential buyer, you want to sell the product group or service offering to someone who already knows it to avoid delay and to put cash in your pocket. The ideal buyer would be someone who has the ability to add your products to their existing operation. They can integrate and value the acquisition much more easily if they will only incur variable costs to add additional revenue If the new owner knows the market segment and what customers expect, it will it easier to negotiate an equitable price.

You want your cash out of the assets, but the potential margins the new owner can generate should control the asking price. It is best to get some professional valuation advice before you act. Understand you are selling a business unit not a collection of inventory assets. Price it that way!

With some effort and understanding of the task and its benefits, you may even find a buyer with a significant degree of synergy through increased purchasing power.

With thought and planning you will see how your product group or service offering can immediately benefit a buyer and their customers. Trust your instincts on this! Pick your spots and take actions with confidence.

This step reduces your scale of activity so you can eventually focus on higher priority tasks. But, maybe more importantly, the cash generated will buy you precious time to do the needed repositioning of your business while the marketplace changes.

These opportunities, uncovered when you know “what business you are really in,” will create huge benefits for you and your operation for the long term. This is a critical preparatory step to your planning. It is one of the indispensable actions that will permit you to develop the solid foundation needed to create a thriving business.