Pivoting means changing the direction of a business after realizing that the existing products or services have failed to meet the needs of the markets. The main goal of doing this is to improve revenue and survival chances in competitive markets. As you pivot, ensure you do it correctly because the way you do it can make a difference.
When can you pivot?
While pivoting is crucial, it is not a silver bullet that can solve all the woes you face in your business. Therefore, as a small business owner, consider pivoting when it is the last solution or whenever it is necessary. It should always be the last resort when everything else has failed or has been exhausted. There are various times you should consider when pivoting. One of the reasons is that there is little progress even after investing a lot of resources and cash into your business. Another reason is when there is a lot of competition or when your organization's progress has stalled. You can also do it when the features of products are not getting the due traction or the customers are not responding to the products as you initially thought they would and when your perspective about the industry you operate in has changed.
How do you succeed in pivoting?
Successful pivoting requires decisive action and a leader that is ready to take risks. However, you must understand that no solution can be everything, no matter how you see it. Therefore, even as you introduce new products or features, ensure you are not doing it too much because it may bring confusion to your customers. Here are some tips on how you can pivot successfully.
- Pick goals that are aligned with your business
When you are pivoting and trying to change how your small business operates, you need to define new goals that align with the newly pivoted business. Make valuable decisions on your new goals concerning revenue goals and customer traction numbers. While it is good to do it, comparing your business with the previous goals will not give you a clear idea of your company's performance.
- Understand your target
Before embarking on your pivoting mission, ask yourself what you want to achieve. For example, if your product is not selling, you might need to think about why this happens, and the target that pivoting might achieve. Perhaps your main problem is that you are not selling it to the right people. For example, while your business might be targeting some customers, your products might be perfect for B2B.
- Assess what your competitors are doing
Another critical step is to identify what your competitors are doing. These are not just any competitors. Rather, they should be your direct competitors. After such an assessment, think of what you can do better to get ahead of them.
Speak the language of your audience
Pivoting is always thought of as offering a new product or service. While this happens most of the time, it is not always the case. Instead, proper messaging is critical because an excellent idea can go unnoticed if you fail to focus on your audience. Consider letting your audience understand the overlooked feature if you want to bring the value of the pivoting out.