The pivot, if properly executed, can work in business. It has led to some significant successes, particularly in technology. Twitter was formerly a podcasting network, and YouTube used to be a video dating site. Knowing when and how to pivot is critical to being successful. When to do it and how to is tricky. If you’re considering a pivot, here are some pointers.
The Why and How of a Pivot
Types of Pivots
A pivot is a move to a new strategy. It could be many different things.
You could change the type of customers you go after. For example, you could start targeting only upscale clients. The profit margins are usually higher.
Sometimes you need to turn a feature of your product into the product itself. This is often true in software, where it’s often essential to have focused and streamlined products. If your program does everything under the sun, it won’t be the best at anything.
You might think of a better revenue model. Perhaps your sales are low, and you feel you could be better supported by pure advertising.
When do you pivot? There are several tell-tale signs that you might want to switch things up with your business.
Reasons for a Pivot
Too much competition
A market is not good if there are too many players. It’ll probably be hyper-competitive, and there could be a race to the bottom in prices.
You did a lot of customer research, but you got a weak sales response.
Change in perspective
Something big is different. Maybe there’s a significant change in vision or goals. Or you want to pursue something else.
Now that you’ve decided you want to pivot, here are some tips.
Do so as soon as you can. Every second spent on your old business model is wasted time.
Tips for How to Pivot
Set new goals.
It’s important to know where you want to head in business. Setting goals is crucial because it forces you to think about the future.
Keep your assets.
There’s no reason to throw out what you already have. Often there is a lot you can still use, whether it’s computer code or market research.
Listen to customers
A pivot is a significant change. There might be a disruption in revenue, so it’s important to keep your existing customers happy.
Sometimes a business needs a pivot because the current situation isn’t working. Although it can be challenging, when properly executed, it can lead to great fortune.