Master Small Business Adaptability With the SBI3 Model

Adaptability — the ability to quickly adjust to forces both internal and external — is the single biggest differentiator in small business success. 

More than sales. More than marketing. More than operations. More than HR. 

Small business adaptability is a mindset that can be applied to all areas of business. It’s a mindset that believes no challenge is insurmountable; that failure is a good thing. Embracing this mindset — and getting really, really good at executing it — will drastically increase the likelihood of business success.

Learn How to Sail the Open Waters

Imagine you are sailing on the open water one sunny June morning. The sun has just risen, and there is a crisp breeze at your back. You have momentum, and the sea is yours. 

You’re a few miles off the coast, where the winds are vulnerable to change. In fact, you’ve never sailed this area of the ocean before. About an hour before noon, the winds begin to shift. You’re distracted by the view and the sea splashing onto your face, and don’t pay much attention to the shifting of the winds. 

Next thing you know, you’re in irons. You’re stuck. Irons, in sailing, means that your boat is pointed directly at the wind. You can’t move. 

What could you have done to avoid this? 

Tacking. 

Sailboat tacking is a maneuver used to change the direction of a sailboat when sailing upwind or at an angle of the wind. Think of it as zig-zagging.

You’re still moving to your destination, but you’re constantly adjusting for headwinds. You’re flexible and adaptable. 

Entrepreneurs embracing small business adaptability should learn to navigate change like a seasoned sailor. 

The Importance of Small Business Adaptability 

Adaptability is the ability to adjust to new conditions. Small businesses, which often have limited resources, must be particularly adept at navigating change.

Here’s why building an adaptable business is crucial: 

• Market shifts and new trends are continuous — What worked last year may not work today. Consumer behavior, market demands, buying habits, and economic conditions shift rapidly.

• Technological advancements can disrupt industries — Businesses that fail to embrace technology risk becoming obsolete. Past work does not equal future success. 

• Unexpected crises demand quick responses — The COVID-19 pandemic highlighted the importance of businesses being able to pivot swiftly.

• Competition is fierce — Staying ahead requires innovation and the ability to differentiate from competitors. The Walkman died because of the iPod. Blockbuster died because of Netflix. 

50% of businesses in the United States fail within five years. Approximately 65% fail by their tenth year in business, according to the Bureau of Labour Statistics. 

In the book Change is Good: You Go First, Tom Feltenstein says “If you don’t like change, you’re going to like irrelevance a lot less.”

Small business owners who embrace change and rapidly implement feedback into their company are far more likely to innovate, grow, and outlast tough times. 

Avoiding Change for the Sake of Change 

Adaptability works best when it’s purposeful. Every pivot should be guided by a clear goal. Think of the sailor navigating the shifting winds — they aren’t drifting aimlessly. Their maneuvers are calculated, ensuring they stay on course toward their destination —no matter the changes along the way.

The same applies to business. Pivoting with no purpose or direction? A rudderless ship?

Bad. Really bad. Chaotic. 

Controlled adaptability with quick wins and rapid feedback? A business culture that embraces a flexible mindset? 

Amazing. Game-changing. 

One thing I'll discuss more in the months ahead is a project management approach called LEAN. LEAN is based on learning and adapting over analysis and prediction, which is the underlying premise I’m driving at. 

Because small business adaptability is targeted and strategic, you receive explicit feedback on a theory you've elected to test. You can then implement this feedback into your strategy. This cycle of continuous learning and improvement allows you to move at lightning speeds in pursuit of your “Why.” 

Companies who embrace this recognize that failure is not a setback, but a learning opportunity. I also believe that when adaptable teams embrace this mindset, morale is higher. People are excited to solve problems and innovate together. 

Failure does not kill growth. Stagnation does. Your biggest failures may one day produce your most transformational outcomes. Adapt and overcome. 

Adaptability Does Not Solely Apply to Growth

It's also worth clarifying that adaptability does not necessarily relate directly to personnel or revenue growth. 

Let’s say you are a small business owner who is happy right where you are. You have a comfortable work-life balance and you have a handful of employees. You STILL need to remain adaptable. The market changes. Customers change. Supply chains change. Key strategies change. 

Furthermore, you may be familiar with the concept of a 1% improvement. Getting slightly better every day has tremendous effects over time. What impact could this have on a small business that is resource-constrained?

Every business has room for improvement.

Even if you're not trying to scale, could a 1% improvement to your workflow improve your bottom line? Give you an extra hour at home in the evening? Increase customer satisfaction? Give you the cash flow to increase year-end bonuses for the team? The possibilities are endless. Don't settle for the status quo. 

So, acknowledging that controlled adaptability is a mindset every small business owner should adopt, how can they go about doing so? Is there a solution that any entrepreneur or small business owner could adopt in an effort to improve their adaptability? How do you create a system that helps your business become adaptable, rather than simply reacting to every shift?

It’s here that I’d like to introduce a structured approach, known as the SBI3 Model. I designed this model specifically for small businesses, offering a framework that fosters controlled adaptability and turns challenges into opportunities.

Let me show you how the SBI3 Model can help your business navigate change effectively.

A Framework for Controlled Adaptability in Small Business - The SBI3 Model 

The SBI3 Model is built on three pillars:

1. Innovate – Stay ahead by identifying new opportunities. Or, brainstorm solutions to your toughest problems. 

2. Implement – Take action quickly and test your ideas.

3. Improve – Continuously gather feedback and refine your approach.

The SBI3 Model is the ultimate tool for entrepreneurs — streamlining problem-solving, driving action, and fueling continuous growth. It enables you to break through your toughest challenges and execute solutions with the power of a project management mindset. 

1. Innovate: Spotting Opportunities for Change 

Innovation could mean inventing something new, but it doesn’t have to. It could also mean finding better ways to serve your customers, optimizing operations, or differentiating yourself from competitors. We'll do this by brainstorming and converging, fostering an environment where every new idea is welcomed and encouraged. 

2. Implement: Moving from Idea to Action 

Once you identify an opportunity, execution is key. Many small business owners get stuck in the “idea” phase and fail to take action. Implementation should be quick, with a focus on testing and iterating. That whole project management thing I talk about? That comes into play here. Start small, have a plan (budget/schedules/KPIs), utilize Agile, and move quickly. 

3. Improve: Learning from Feedback 

The final step is continuous improvement. Adaptability requires an ongoing cycle of feedback and iteration. Gather data, refine your approach, and repeat the cycle. Improvement isn’t about perfection — it’s about progress, making small, meaningful adjustments that add up over time. 

Adaptability as a Competitive Advantage 

In today’s fast-paced business environment, adaptability is a superpower. Adopting an adaptable mindset is the single most important change that small business owners can make. 

At the end of the day, the only things certain in life are death and taxes. You don’t know where your business is going to be in five years. I don’t know where Boschetto Consulting is going to be in five years!

You can theorize, have some ideas, and be confident, but there is no way to know with certainty until you try. You can’t predict the future. You don’t know what’s going to work and what’s not.

And that is why adopting an adaptability mindset is so critical. Something works? Great. Let’s make it better. Let’s maintain that competitive advantage. Something doesn’t work? Great. Let’s learn from it and try again.

Let’s Implement the SBI3 Model Together

If you're an entrepreneur or small business owner, the question isn’t whether you need to adapt — it’s how fast you can do it. The SBI3 Model provides a structured approach to adaptability, fostering rapid feedback loops to keep your business resilient and ready for whatever comes next.

Are you ready to make your small business more adaptable? Start by identifying one area where you can Innovate, Implement, and Improve today. Share your thoughts and experiences in the comments — I’d love to hear how you're adapting to change! 

For more tips, actionable strategies, and resources to help your business thrive, subscribe to my newsletter. You’ll get exclusive insights and updates on how to leverage the SBI3 model for continued success. Let’s navigate change together!