Not all business pivot strategies are successful. In the first five years, Investopedia reports that about 50% of businesses will collapse. There are many reasons why companies are divided. Sometimes, but sometimes, it’s not avoidable.
The death of an idea must not be the death of a company. You may have formed an impressive team, built a valuable reputation, and linked strong contacts and reliable providers, yet your product is not sold. Why give up all your company’s great things if the issue is the product?
You can’t close shop if reality begins to morsel and you realize that you can no longer walk your present path. Rather, your business can survive and prosper by performing the most sensitive but also attractive of acts: the corporate pivot.
Covering a market transition, countless companies have been very productive. For example, Starbucks started as a retailer selling coffee equipment and beans, some pivots can be very common. Other pivot points could be much more extreme. Suzuki motor manufacturer is famous for having begun his life as a manufacturing company. They have both valuable assets, but they have changed what they provide to their customers with the opportunities to grow.
And these are also not exceptional examples; any company that is pivotal can become so much more than once. But how do you reach a successful pivot? Make sure you ask yourself these questions when considering changing business strategies:
1. Is pivoting the right thing for your business?
Instead of dismantling your business and starting from scratch, the purpose of a business pivot is to retain as many of your current assets as possible. These may include branding, skills of employees, and options for networking. But what if these assets have no value, or do they actually harm your business?
A pivot is not the answer for any business that struggles. Often, because of factors directly related to your product, you’re in trouble. Through engaging in controversy or disappointing clients, you might have tarnished your image. And, you may have developed relationships the wrong way and are weighed down as a result.
2. Will your future be secured by customer feedback?
The best and most successful enterprises are those that solve their consumers ‘ desire or need. Companies also fail to make an impact because they have been designed to match the owner’s needs rather than the consumer. To capitalize on a pivot’s potential, you need to enter a new business area that meets the needs and/or needs of consumers in such a way that they find your product irresistible and irreplaceable.
You have an advantage over newcomers as an already established business, because you already have a consumer base from which to draw inspiration. Collecting information from your customers through surveys, questionnaires and feedback forms will give you valuable insight into the types of problems they have–which means you can start figuring out what problems your company can help solve.
3. Can you take advantage of your existing network?
It’s not what you do, the saying goes, but who you know. This is only half true in business; many enterprises will quickly find out it’s both. Knowledge and skills are essential, but the relationships are also important. Networks remain an extremely powerful business tool for success.
Using contacts for source resources and information or selling your current product is commonplace. However, if you are able to pivot your business, your network will become something more. It becomes a strategist team that lets you test solutions and a support structure. Your customer feedback helps you to identify issues with your current business model and how you can adapt to meet your needs.
Feedback from your communication network allows you to take information that you have gathered from customers and to gain insight into how you can develop the company they need. Engage and ask questions with your network. Use the foundations you need to build to support your business pivot. Ways to optimize your network include gaining insight into your new market, figuring out which technologies can support your new business, acquiring new partners, and finding suitable suppliers of assets.
You may not be able to offer what you need with your current contacts. But by considering how they can support you, you can find that they can build bridges between your company and their contacts list which can provide you with what you need.
4. Are you undecided?
Comprehensibly, you’d like to spend as much time as possible putting in place a plan that will promote success, but there’s one important factor to consider: the longer you wait, the longer you run a business that doesn’t achieve the success you’re striving for. There’s such a thing as preparing too much.
This may not be harmful if you’re just on a plateau. Nevertheless, if your company is unprofitable, the longer you wait to pivot, you will lose more and more money. At some point, as you did when you first started your business, you’ll have to bite the bullet and make the changes you need to make. The absolute key here is to strike a balance. You need ample time to formulate a strategy that has the potential to bring you the success of your current outfit. But you need to move fast enough at the same time that you still have a pivoting company.
Note, you’re not just going to pivot and excel right away–or at least you’re unlikely to. It will take time to restore some of your business ‘ elements and promote your new product. If you think of reasonable time frames, you have to compensate for this, or you may find that after you have finally committed to the pivot, you can’t make your new dream come true.
5. Are you ready to change information about your business?
When pivoting your business, creating a clean break is important. The last thing you want is to deal with your old company’s remains: turning away clients, wasting time on no longer relevant calls and emails, and so on. You want to be in a position where your attention is solely on your new business plan, which means that you need to remove all references to your previous business.
If you’ve ever moved home, you’ve definitely created a list of things that need to be changed. Edit your address on official identity cards, edit insurance, cancel accounts, register with new healthcare providers, and more. You’re still you, but you need to change the conditions around you based on changing circumstances. It’s the same during a turnaround for your company. To suit the transformation you are going through, you need to review all of your business information.