The way we do business is forever shifting, but the current pandemic caused the most dramatic shifts we have seen in recent years. So what is pivoting, and what are the subtle signs that it’s time to pivot your business?
What does business pivot mean?
A drastic change to your company’s offerings to target your market entails a business pivot. A pivot can mean the shift to a new strategy. It can entail changing the whole company or just addressing one area.
Some examples to help you understand a business pivot include:
- Streamlining an offering by turning one feature of it into the product itself.
- A pivot also entails the opposite, when one product is turned into a feature that joins the set of features of another product.
- Taking the company into a new market vertical by focusing on a different target market.
- When you decide to move from one platform to another, e.g., from software to app or the opposite.
- Changing the revenue model to increase monetization. An example: you decide to go from offering something for free to changing to adding ads.
- Cutting down on manufacturing costs by changing the technology used for building your products.
Subtle Signs Showing You Should Pivot
We all know businesses that have pivoted successfully, but pivoting requires careful consideration and should only be attempted after exhausting other options. These are five subtle signs to help you identify when the time has come to pivot your business.
1. Your Results Disappoint
If you do not see meaningful results, even after working hard over a long time and offering consistency, pivoting could help boost sales. But, first, consider where you need to implement the new approach. It may not be the company itself, but it could be your product market, business model, or revenue model.
2. Customers are Going to the Competition
Sometimes, you may have started by fulfilling a need that is then met and improved by another company. Losing customers to the competition is hard, but if you can’t get them back by reminding them who you are there on social media, the time may have come to offer something different. Many people proved pivoting can be done successfully during this pandemic. When consumer need for their products dropped, they quickly adapted to products in demand. Always keep an eye on what the competition is doing.
3. Your Company Has Reached a Plateau
If your growth is sluggish and your business appears to be stagnating, then the time has come to examine the causes. The causes for a drop in growth can include an incorrect strategy or an unmotivated team, so take a closer and honest look. Decide on how you can kick-start it again with a pivot.
4. Some Areas are Just Not Working
Sometimes, you may find that one area of your business is doing exceptionally well, and others are lagging. Perhaps the time has come to capitalize on the regions working by undertaking some radical changes, even if it means stopping services holding your company back. Focusing your attention on that work area can instantly boost revenues and productivity.
5. Changes in You or Your Staff
There are several changes you can experience, and the first is a loss of energy and exhaustion. It is usual for your energy levels to fluctuate, but sometimes people lose their enthusiasm, which leads to fatigue and loss of passion. As a business owner, you should immediately recognize the signs and consider a pivot.
Additionally, people change, and chances are your values, goals, and vision have changed since starting your company. So perhaps it’s time to find a more lucrative business or another niche.
Also, look out for changes in your staff. If you have a high employee turnover, perhaps there is something wrong with your company’s development opportunities or mission. The time may be ripe for a change,
These are some subtle signs that will help you identify if the time has come to pivot your business. These signs show that the problem is beyond the typical obstacles faced by companies that can be overcome but indicate that it is impossible to continue running the business as is. Knowing when to pivot allows your business to thrive and adapt as needed.