While pivoting a business can breathe new life into an otherwise failing business, it also means you have to start from scratch and abandon all the investments that you had previously put into your company. If you have been thinking about pivoting your business, then you should know what it entails before you go forward with the move.
What is pivoting?
A pivot means fundamentally changing the direction of a business when you realize the current products or services aren’t meeting the needs of the market. The main goal of a pivot is to help a company improve revenue or survive in the market, but the way you pivot your business can make all the difference.
When is it the right time to pivot?
A pivot is not a magic pill that can solve all your business woes. Companies should only consider pivoting when absolutely necessary. It should be the last resort when all other options have been exhausted.
Focus on a feature instead of an entire solution
The key to a successful pivot can be found in one of your product features. No solution can be everything for everyone. The more features you try to introduce into your product at once, the more it will confuse customers and dilute your marketing impact. Instead, take the “less is more” approach with pivoting.
Pick goals that align with your business.
When you pivot your business and change the way your company operates, define new goals that align with your new and pivoted business. Decide on new revenue goals and customer traction numbers. Comparing your business against the same old goals will not give you a clear idea about how your company is doing.
Understand your target audience and their problems.
Analyze what your competitors are doing.
Before you pivot, look at what your direct competitors are doing and how you can do it better. If you are planning to offer the same products or services as your competitors at around the same price point, you might not be able to see significant results. At the same time, look at how big your competitors are and if your startup can compete with them.
HERE ARE THE SIGNS TO KNOW ITS TIME TO PIVOT YOUR BUSINESS
You’re Not Seeing The Results You Hypothesized
If things are not working, you shouldn’t give up! But instead, change directions and come up with a new course of action with the same goal in mind
You’ve Lost The Passion
Without passion, your lack of energy can become contagious and can be passed on to other employees. Fortunately, there tends to be a lot of energy to be gained with the excitement of a business pivot. Whether you decide to pivot or not, keep it fresh for yourself and keep the business fresh for your team.
There is a Greater Opportunity for Sustainable Growth
You pivot your business when you realize there is a more significant opportunity for sustainable growth.
Brand Switching
Your consumers’ behavior and demands are always changing, and to be successful, you must keep up with the trends.The most significant sign that it is time to pivot is when your customers start switching to your competitors — it is a telltale sign that you aren’t growing with your customers’ needs.
Failing Metrics In ROI
it should become a priority to begin creating a new marketing strategy and even looking for other brand-building opportunities. The data simply can’t be questioned, so it must be addressed as soon as possible when it begins to show a broad picture of decline.
Unsatisfactory Growth Rate
An unsatisfactory growth rate is one common explanation for business-wide pivots because managers are disappointed with the sluggish growth rate the company has experienced. If you are a company owner who is extremely worried about the pace of growth your business is going through, consider it a telltale indication that you have actually struggled to pivot a bit too long.
The Phone Stops Ringing And Orders Stop
It’s time to take a step back and see if what you have to offer is still relevant if your target market’s pain points have changed, and/or if your marketing message is reaching the right audience with the right message..
Development Has Hit A Plateau
The no growth or slow growth can be attributed to various reasons: inefficient processes, an uninspired team, undeveloped products and ineffective strategies
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