When my original plan ran into an unexpected cultural obstacle, adjusting the business model gave the company a second chance and opened the door to a more successful market.
Key Takeaways
- Understanding local culture is essential when introducing a new product or service.
- A flexible business model can help entrepreneurs respond when the market does not behave as expected.
- Entering a different market first can create the credibility needed to reach the original audience later.
Starting a business often feels like entering unfamiliar territory. The beginning is usually filled with excitement and confidence, but unexpected challenges can quickly force entrepreneurs to reconsider their plans.
My own entrepreneurial journey taught me the importance of being willing to adapt. When my company struggled because of market conditions and cultural resistance, changing direction became the decision that ultimately kept the business alive.
The Original Business Idea
In 2016, my co-founder and I launched an education company in the United Arab Emirates. Together, we had more than 50 years of experience in education and school management throughout the Middle East.
Our goal was to improve the private tutoring industry in Saudi Arabia. At the time, the market was highly disorganized. Advertisements for tutors were commonly posted on traffic lights and other public spaces, listing teachers’ names, subjects, phone numbers and hourly rates.
We wanted to bring all of this into one convenient platform.
We developed an app that allowed parents to select a teacher and schedule a tutoring session at a suitable time. Similar to a ride-sharing service, the teacher would travel to the customer’s home, provide the lesson and receive payment afterward.
Our original strategy was to begin by serving individual customers, build public interest and then expand into the corporate market.
Testing the Market
Our sales team traveled throughout the country to introduce the service. They visited shopping malls, educational institutions and other busy locations where they could demonstrate the platform, gather feedback and register potential customers.
The early campaigns produced encouraging results. Several people signed up immediately, and the feedback we received allowed us to make small improvements to the service.
These interactions appeared to confirm that there was real demand for the idea. They also helped us identify practical issues before the official launch.
An Unexpectedly Quiet Launch
After building awareness through in-person promotions and online marketing, we believed the company was ready to launch.
Our expectations were high because the early responses had been positive. However, once the service officially became available, very few people actually used it.
My co-founder and I were confused. The research suggested that customers liked the concept, so why were they not booking sessions?
The answer was rooted in culture.
The Cultural Barrier
In 2016, app-based services were not yet as widely accepted in Saudi Arabia as they are today. People were interested in the tutoring platform, but many families were uncomfortable inviting an unfamiliar teacher into their homes.
Although customers liked the convenience of the idea, the lack of familiarity and trust prevented many of them from following through.
The concept itself was not necessarily the problem. The market simply was not ready to receive it in the way we had planned.
Changing the Business Model
By that point, our technology was complete, our staff had been hired and our consultants were ready to work. Rather than abandon the company, we decided to reposition it for the corporate market.
I returned to a traditional sales approach and began visiting businesses directly. Armed with my laptop and a presentation, I introduced our training services to major organizations across the Middle East and North Africa.
The response was immediate.
Before long, we secured training contracts with major brands such as IKEA, STC, The Ritz-Carlton and Souq.com, which was later acquired by Amazon. Some of those relationships eventually developed into long-term agreements covering entire countries.
Why the Pivot Worked
The corporate sector was already comfortable hiring outside consultants to provide professional training. Unlike individual families, businesses did not view an unfamiliar instructor as a major concern.
This made it much easier for us to enter the B2B market and begin generating revenue.
Our corporate partnerships also helped us return to our original consumer-focused vision. Through employee loyalty programs, we were able to offer tutoring services to the customers and employees of established companies.
Instead of appearing as an unknown business sending strangers into people’s homes, we were now introduced as a trusted partner connected to recognizable brands. That credibility helped reduce the cultural hesitation that had previously held us back.
The Importance of Remaining Flexible
Entrepreneurs often become deeply committed to an idea because they believe it can transform a particular industry. However, even a strong concept may fail if the market is not prepared for it.
Our company survived because we were willing to change the order of our strategy. Instead of building a consumer business first and expanding into corporate services later, we entered the corporate market first and used those relationships to eventually reach individual customers.
Not every entrepreneur is able to make that kind of adjustment before running out of resources. A promising idea can disappear simply because the original business model leaves no room for change.
That is why flexibility should be built into the company from the beginning. A pivot does not always mean abandoning the original vision. Sometimes it means finding a different path toward it.
When conditions change or customers respond differently than expected, the ability to adapt may be what gives a business the second chance it needs to succeed.
Article contributed by
The AFE Editorial Team