Pivot Strategy Example

Because so many companies have pivoted and experienced massive success as a result, it’s easy  for naive founders to believe that pivoting is a magic pill that can cure any problem. In truth, pivoting should be considered when absolutely necessary, and when all other options have been exhausted. To make sure you don’t make a rash decision with your company, below are some signs to help you identify when pivoting makes the most sense:

1. Always Playing Catch-Up

The company itself may not need to pivot, but you may need to pivot your business or revenue model, product, or market. Your progress is slow or slowing despite the work you put in.

2. Are you struggling to keep up with the competition?

You were unique, but now a competitor with larger resources comes along and creates a similar offer only better. Since you don’t really have much of a choice in this situation, your startup is probably better off doing something completely different.

3. Are your sales not matching your predictions? Your Company Has Hit a Plateau

If you notice slow (or no) progress in your company’s development, then it’s possible it’s hit a plateau. This may be the result of boredom or an unmotivated team, or simply an inefficient strategy, but whatever the cause, a pivot should be considered. It doesn’t need to be a major pivot; at times an honest, objective look at your company and identify something that can be revamped.

4. One Thing Gets the Most Traction

If only one aspect of your company or product line is succeeding and the rest are failing, or, at least, moving slowly, then that may mean that your company should focus on capitalizing on what’s working and change, maybe even radically, or completely ditch what isn’t working. By directing your attention on what works, depending on what strategy you take, your company can experience a boost in productivity, efficiency, and revenue.

5. There’s a Limited Response from Your Marketplace

You can do all the customer development and research in the world, but just because you have someone who says that they would pay X amount for your offering now, doesn’t mean they will still buy it, say, six months down the line when you’ve actually built and launched your product or service. A lukewarm response to the first release of an offering doesn’t usually bode well, and while it’s possible to generate buzz with marketing and PR, you can only do so much to convince the world of the value of your product.

6. Your Perspective Has Changed. Does your original idea no longer make sense?

Once you’ve launched your company and have been running for some time, there’s a possibility that your goals, vision, and values will change. Researching a niche and experiencing it firsthand are completely different from one another, you may even find more lucrative avenues for you to pursue, and that your current course just isn’t for you.

Know when it’s time to persevere and when it’s time to quit

Every startup experiences considerable difficulties on the road to success, but you have to know the difference between an obstacle and an impossibility. In other words, when things get tough, ask yourself this question: “Can this problem be solved with more research, customer development, funding, etc.?” If the answer is “no”, and you really can’t think of a solution, regardless of how improbable it may be, then you should consider pivoting.

If you would like more information on pivoting or any other strategy within your business activities, then drop me a DM in the comments.

 

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