Managing a successful pivot in business
There are few things tougher when running a business than changing your direction mid-stream. However, whether it’s due to changes in the market or due to new opportunities that you want to capitalize on, sometimes you simply need to pivot. Here, we’re going to look at a few tips that can help you manage that pivot as successfully as risk-free as possible.
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Timing is everything
When you’re looking to pivot into a new market or even a new industry, then you should be monitoring it to make sure that you have your timing on point. For instance, a lot of businesses might be looking at the right time to transition to online-only. Online sales normalized only recently, however, so making that jump before they did that could put them in danger of finding themselves unable to get the sales to justify making the pivot in the first place. Watch how the industry is performing and track sales reports as best as you can.
Find the space you need
You’re not likely to be the first or only business in a market when you do decide to make your pivot. You don’t have to be the first, however, you simply have to be able to identify what place you take amongst the others. Using market research, you can look into, for instance, the food industry to see existing market shares, key players, and projected growth. This can help you identify who your competition is and what share of the market you might be able to take, as well as niches you could potentially fit into.
Work to establish an in with your customers
If you’re pivoting to a different set of customers, then you need to lay down the groundwork to make sure that, by the time you launch, they will be there to support you. This means taking the time to prepare the messaging around the pivot as if you were preparing a launch. Get in touch with your potential customers through feedback surveys, learning about their pain points, and what they want from businesses that will be in competition with you. This way, when you make the jump, you will have a good knowledge of what your customers’ needs are.
Don’t scrap your existing work
Just because you’re changing direction doesn’t mean you have to abandon everything that you once had. If you had a decent customer share, a strong brand, or an excellent way of delivering your services, then you should be willing to adapt them to your new direction rather than starting everything from scratch. It’s likely that some things are going to have to change, but take the time to look over how your business runs and don’t give yourself more work than you need to.
Pivoting your business is never going to be easy, exactly. However, by getting a better understanding of the associated challenges and risks, you can also put the right preparations in place to address them. Hopefully, the tips above help you do that.
