If You Don’t Learn How to Pivot Your Business, You’ll Watch It Perish 

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If You Don’t Learn How to Pivot Your Business, You’ll Watch It Perish 

By Hilt Tatum IV | Entrepreneur Magazine | Feb 19, 2024

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Netflix, Instagram, Slack. These three companies have one thing in common: Their initial business plan wasn’t sustainable, and they became the formidable companies they are today because they chose to pivot in a new direction.  Pivoting in startup culture is a strategic business decision to shift course to capitalize on a new need in the market that your product or service can meet with calculated changes. Let’s see when it makes sense, how to do it well and what it looks like in both success and failure.

Time to make a change.  Many businesses with everything set up for success, only to have the market pull the rug out from under them. Even the most business-savvy and meticulously prepared ventures can be surprised by economic changes.  The truth is that few successful businesses got to where they are today following the same strategic plan they started with. While always maintaining your core values — what makes your company unique — keeping your organization agile is essential.

Decision time.  Recognizing the need to pivot and deciding to execute are two different things. There are many factors to consider, and several stakeholders will likely need to sign off. That’s why conducting extensive market research, data analysis and forecasting is essential before deciding next steps.  There’s no instant solution or easy answer. A decision of this magnitude requires due diligence and belief in your team and product.

Successful implementation.  Implementation can be one of the most challenging aspects because your business will likely face scrutiny and backlash from all angles, including the inside.  If you’ve done the proper research, considered all the options and scenarios and have buy-in from the appropriate parties, no other forces should change your stance unless there’s a legitimate threat to your business’s future.  Communicating this shift from the point of empathy and care while respectfully sharing the need for a pivot and how it will work is essential to keeping the process steady. 

There are no guarantees.  The unfortunate part of business is that there’s always risk involved. Nothing is ever promised. Yes, pivoting could save your business from failing — or it could lead you down a path that seems promising but is yet another dead end. If that’s the case, learn from it. It could mean the end of the line or another detour on the road to your company’s true potential. Regardless, don’t let a single failure go by without gaining insights for improvement or wisdom for what does and doesn’t work.  Even if your pivot is successful, that doesn’t mean you won’t have to stay on your toes, ready to adapt as the market changes again. No business is ever safe. Industries shift. Competition grows fierce.  Never stop innovating. Don’t get comfortable. Keep your eyes on the path forward, watching for whatever obstacle is next.

Stay flexible, be ready to adapt and when the time is right, pivot well.

3 key takeaways from the article

1. Netflix, Instagram, Slack. These three companies have one thing in common: Their initial business plan wasn’t sustainable, and they became the formidable companies they are today because they chose to pivot in a new direction.  Pivoting in startup culture is a strategic business decision to shift course to capitalize on a new need in the market that your product or service can meet with calculated changes. 
2. In a business world that is constantly fluctuating, pulling the plug when things don’t go as planned is an easy out. However, successful entrepreneurs and investors who truly understand their markets can see innovative ways to meet new opportunities by tweaking current business models. 
3. Doing so successfully requires high organizational adaptability and flexibility to achieve long-term success.  Recognizing the need to pivot, decide the time for execution which require due diligence and belief in your team and product, implement and no other forces should change your stance unless there’s a legitimate threat to your business’s future.

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Topics:  Entrepreneurship,  Resilience, Startups, Pivot, Success