If you discover that your business has hit a dead end, it’s time to reassess your options.

First, you should do the obvious and try to adapt the business to make it work. Identify the core problem with the model and consider ways to resolve the issue. Target different customers, change the pricing structure, leverage the existing infrastructure, etc.

If there isn’t a quick fix, you should see if you have an opportunity to shift gears and create a derivative. A derivative business is a company created out of one function or specialty of a broader company. For example, if you start a company and along the way develop a competency in writing code offshore, algorithmically optimizing your digital marketing ROI, offering tools that you developed to facilitate your old business model or otherwise, you may have a valuable service that can be sold profitably. What was once merely one aspect of your old company’s competitive advantage could become your core service.

It is often relatively easy to determine if you have a service that could become a derivative business. It’s the tactic you’re most excited about, that intrigues your friends who are entrepreneurs and that you find a way to mention in your pitch to investors. In short, it’s a key part of your secret sauce.

The transition to focusing on a derivative business isn’t always an easy one. Based upon how developed your original company’s brand, is you may or may not be able to use the same company name, logo and entity. The good news is that even if you need to re-brand you can often leverage your existing infrastructure – team and otherwise.