Pivoting: When and How You Should Pivot Your Business

What is pivoting?

To pivot your business maybe the smartest thing to do. Eric Ries, author of “The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses” defined a pivot as “a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth”. How does this apply to your business especially in these challenging times we’re in?

To pivot, or not to pivot

A time will come when you’ll need to decide whether to persevere or to pivot. Rapid advancements in technology have changed the business landscape in so many ways. This was exacerbated by the recent Coronavirus pandemic which forced firms around the world to come up with fast and effective solutions.  Consider the following signs that could indicate a need to pivot your business.

1. You’re losing customers

Customers are the reason why your business stays in operation. If they’re leaving you in mass numbers for some other provider, then, it’s time to rethink your game.

2. Your offering is no longer relevant

Change is the only constant in life according to Heraclitus. When your products or services are no longer needed, you have to evolve along with the market

3. You’re barely making it

If you’re having challenges making ends meet for a considerable period of time, pivoting may be the best solution.

4. Too much competition

When other outfits have a huge chunk of the market and you could not make much of a dent in it, it’s probably high time to make that much-needed shift.

5. Certain items are selling but others are not

This is a situation where you could do well by focusing on offerings that produce results. So, conduct research and monitoring regularly.

6. You’ve stopped growing

Growth is the only way to stay in business for long. Growing in terms of revenue, market share, and efficiency of operations is the key to remain on top of the game. It will give you an enormous advantage over competitors as you’ll have more resources and better reach.

How to pivot your business

Pivoting must be done as quickly as possible to avoid wasting resources. However, you must give it serious thought as it would be difficult to retrace your steps once you’ve started the move.

Remember that business is all about relationships. You must think of the major stakeholders before making your move. Thus, inform your customers, employees, and partners beforehand on why you need to do this. Transparency is the key to successful relationships.

Take your earnings and learnings along. For example, things and people you’ve worked with will be your biggest asset along the way. So, figure out what can be salvaged and put them to good use during the shift.

Ries identified ten types of pivot that a business can make

1. Zoom-in pivot

 This is very useful when you see that one feature or product is getting traction. If this is the case, it’s time to focus on it for the best results.

2. Zoom-out pivot

This is the opposite of the Zoom-in pivot. This has to do with broadening your product’s features to include areas that need servicing. In other words, it may be time to include lipstick production to your cosmetics line. This way, you’ll be more in tune with your customers, allowing you to serve them better.

3. Customer Segment pivot

This has to do with profiling your customers to become more effective in your efforts. You might be attempting to market your product to the wrong segment. If you are doing so, it’s time to redirect your efforts and focus on the correct segment.

4. Customer Need pivot

Customers buy products to satisfy their needs. Investing in products that are not satisfying your customers’ needs is a waste of resources. Your customers will be looking for other providers if you don’t make that much-needed move soon.  It’s time to shift your energy towards creating more useful and affordable products.

5. Platform pivot

This refers to a change from an application to a platform or vice versa. For instance, many founders foresee their solution as a platform for future products. So, making a change could become crucial to your venture’s success.

6. Business Architecture pivot

Geoffrey Moore noted that there are two major business architectures: high margin, low volume (complex systems model), or low margin, high volume (volume operations model). Choose the best model for your business.

7. Value Capture pivot

This refers to the monetization or revenue model. This is the spirit of “live and let live”. Transactions should end up in a win-win situation. Consequently, the more value you capture, the less attractive your offer would be.

8. The Engine of Growth pivot

Choosing the right vehicle to achieve sustainable growth is very important especially for startups. Ries talked about the Viral Engine which refers to word-of-mouth marketing. For example, Facebook’s experience. reminds us how the value of user recommendations The company owes its exponential growth via referrals.

9. Channel pivot

This refers to how customers can get your product. To illustrate, customers may access your hand sanitizer from a department store or a pharmacy. Nowadays, we even have online means for customers to have more accessibility. The more channels available, the better it is for both parties.

10. Technology pivot

 Sometimes a startup discovers a way to achieve the outcome by using a  completely different technology. Thus, it is a good move if you can achieve the same or better outcome at less cost and with more efficiency.

Outsourcing as an engine of growth

Are you and your staff overwhelmed by the great number of tasks you have to deal with? Has your ability to deal with customers been hampered by not having properly trained staff? Is your business operation being slowed down because of the pandemic? If you answered yes to any of these questions, then outsourcing may be the viable solution you’re looking for.

In today’s business setup, the slogan “Innovate or die” has become a byword. Change is synonymous with growth and survival. Thus, to fail to change is synonymous with extinction. During these challenging times, a good number of outfits have thrived by enlisting outside help. In particular, some of them have resorted to hiring virtual assistants to help manage their tasks. Pivot your business by outsourcing tasks to virtual assistants who are highly skilled in doing a variety of tasks.  Because their skill set covers a wide range which includes making outbound and inbound calls, admin tasks such as managing calendars, and social media to mention a few.

Back to you

Persevering or pivoting should be given much thought as your decision will greatly influence the outcome of your move. So, make a wise decision first. If you decide to pivot, do it as quickly as possible. In addition, make sure to inform all stakeholders to make a smooth transition. Furthermore, test it for viability before going full swing. Finally, don’t forget that pivoting is not an overhaul. As much as possible, salvage what you can, and make good use of those previous investments.

So, how would you like to play your game? Would you just take it lying down? Make the right move now. Partner with us on that much-needed spin towards success.