Entrepreneurs often start out with a strong conviction that their vision is achievable, but almost all of them later admit that their original solution was not a perfect match for their target market. Credible sources indicate that between 15 percent and 20 percent of startups pivot from their original plan. In many ways, pivoting a business is like pressing the restart button on your personal computer, and this can kickstart the growth of a failing business.
Business owners are often unaware that many successful businesses had pivots. YouTube started out with the sole intention of providing dating services. Papa Johns was born from a failing bar. When Youtube discovered that online dating had already become an over-crowded market, they pivoted to offer unique services. Likewise Papa Johns grew their pizza business after realizing that it could be optimized better than the previous bar model.
Before you even think of starting the process of pivoting, consider if you have enough reasons to take this path. It can be either straightforward or intricate, depending on the circumstances under which it is applied and the nature of the pivot. Pivoting can come with several opportunities for your business if you handle the process responsibly. Look to:
Redefine Solutions to Focus on a Key Feature
The initial passion of most entrepreneurs may make one think that they have a solution that can be everything to everyone. This is not possible and simply confuses customers and weakens their marketing efforts. Pivoting can allow you to focus on a key element in your products that can help you to win more clients and retain the old ones. After the initial traction, you can get ways of bringing back more features.
Recognize the Need for Change
When you are considering pivoting, start by anticipating and analyzing the current market trends to ensure you are not caught unaware of the needed changes. This allows you to make the right decisions and save your enterprise. If you ignore the signs that change is needed and it is needed urgently, your business may face serious problems and eventually fail.
Adapt to Market Realities
Pivoting also requires that you reinvent the vision of your business for the needed changes. This is the stage at which you step up marketing efforts so as to recapture the lost market share. However, if you learn that the market has changed, then you can use other business tools since no amount of marketing can reclaim lost territories.