Pivoting Your Business to Kickstart Growth

Pivoting Your Business to Kickstart Growth

 Entrepreneurs often start out with a strong conviction that their vision is achievable, but almost all of them later admit that their original solution is not a perfect match for their target market. Credible sources indicate that between 15 percent and 20 percent of startups pivot from their original plan. In many ways, pivoting a business is like pressing the restart button on your personal computer, and this can kickstart the growth of a failing business.Many business owners do not know that many successful businesses had pivots. It is possible that you have never heard that both YouTube and Facebook started out with the sole intention of providing dating services. But when they discovered that dating had already become an over-crowded market, they pivoted to offer unique services.

Before you even think of starting the process of pivoting, consider if you have enough reasons to take this path. This process can either be straightforward or intricate, depending on the circumstances under which it is applied and the nature of the pivot. Pivoting can come with several opportunities for your business, and some of them are:

Redefine Solutions to Focus on a Key Feature

The initial passion of most entrepreneurs may make one think that they have a solution that can be everything to everyone. This is not possible and simply confuses customers and weakens their marketing efforts. Pivoting allows you to focus on a key element in your products that can help you to win more clients and retain the old ones. After the initial traction, you can get ways of bringing back more features.

Recognize the Need for Change

When you are considering pivoting, you must start by anticipating and analyzing the current market trends to ensure you are not caught unaware of the needed changes. This allows you to make the right decisions and save your enterprise. If you ignore the signs that change is needed and it is needed urgently, your business may face serious problems and eventually fail.

Adapt to Market Realities

Pivoting also requires that you reinvent the vision of your business for the needed changes. This is the stage at which you step up marketing efforts so as to recapture the lost market share. However, if you learn that the market has changed, then you can use other business tools since no amount of marketing can reclaim lost territories.

In most cases, startups have to pivot to a new technology to remain competitive and enhance margins. Other fields such as transportation have learned to pivot so as to meet environmental directives and alternative forms of energy.

Adopt Realistic and Productive Business Models

Most businesses are started with a direct-to-customer business model. Pivoting presents them an opportunity to know that many domains only work with either value-added resellers or distributors. Other popular business models that you can adopt during the pivoting process are the razor-blade model, free solutions supported by paid ads, and the subscription model.

Create Structured Change

You need to structure a pivot by planning and implementing changes in phases. This can take place by recognition of competent employees who can then be given special roles to play during the pivoting process and after that. Strategic formalization creates room for structured change, which prepares the business for further growth and eliminates undesired surprises.

You can also adapt to emerging economic and political changes. During pivoting, businesses are motivated to adopt new tools and processes for risk reduction and continued growth. A business can pivot the focus of their new software technology tool from productivity to compliance at this stage.

Maintain Constant Connectivity

Once pivoting is fully achieved and all the required changes are well implemented, the business can continue operating without unnecessary interruptions. Undertaking connectivity involves remaining in touch with the social media, consumers, employees, team members, and market realities. If you are able to maintain constant connectivity, you will find it easy to recognize market trends and its subsequent analyses, which will, in turn, make it possible for your business to plan further for the next pivot. Pivoting is part and parcel of business, so it continues iteratively in a structured manner.

The Bottom Line

With the impact of globalization, your business should apply pivots to keep pace with the constantly changing needs, desires, and tastes of the global consumer. This critical process can help your business to survive competition and begin growing. Pivoting can also help a business that is almost closing its doors if the entrepreneur acts promptly and uses the right business tools including strategies presented here.

About author

Michael Barry
Michael Barry 31 posts

Michael Barry is the Editor-In-Chief at AgeOfTheSmallBusiness.com. Currently living in Boston, Massachusetts, he received his B.A. in Financial Economics from St. Anselm College and his MFA in Creative Writing from the Stonecoast Program at the University of Southern Maine.

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