How To Know When It’s Time To Pivot Your Business
Want to know when it’s time to pivot your business even if things aren’t falling apart? Read on for some guideposts.
Before Mark Manson became the internationally-known, best selling author of The Subtle Art is Not Giving a F*ck, he was a relationship and dating coach for men. Before Beyoncé was Queen Beyoncé of the Beyhive, she was one of Destiny’s children. And before Oprah was a tv hostess, network owner, and knower of all things, she was a news anchor.
All of these successful entrepreneurs started their careers in one direction and then made pivots that lead them to greater influence, success, and happiness. The decision to shift their businesses may seem like no brainers to us now, but that’s our hindsight view. Change is never easy at the moment.
As entrepreneurs, far too often, we remain committed to business models, solutions, and strategies that are well past their expiration date. We do so because, unlike spoiled milk, these business methods are not admitting a foul odor. If they are still generating revenue or keeping our clients happy, we don’t notice that the tide has shifted and our businesses must react accordingly.
So how do you know when it’s time to pivot your business focus if things aren’t falling apart? Here are a few guideposts.
First A Note: Pivot Before Your Resign
If we are at the point of giving up in our businesses, then we may have missed the opportunity to pivot before the end smacks us in the face. Resignation sets in when the tank is completely empty. You have no more money or places from which to borrow. You and your team are completely burnt out and filled with anxiety every day. Your business has become that 9-5 job you hate, and you wish you could figure out a way to get out from it.
That’s when your business is over. That’s when resignation sets in. You want to pivot before this happens.
Your Profits, Processes, and People Are Trending Downward
If you’ve been working on your business for 12 months and profits are steadily on the decline, or if it’s your first year in business and things aren’t trending upward (meaning more clients and more money), then it’s time to pivot.
Sometimes out of stubbornness (or ego), we continue using strategies in business believing that our next big breakthrough is just around the corner. But there is a thin line between perseverance and allowing our companies to die a slow, painful death. Don’t let things fall apart because you saw the signs and chose to ignore them. Instead pivot.
When you are early on in a business, this pivot might mean making incremental shifts in your messaging or marketing and sales strategy. Ultimately though, the key is just to do something until you get it right.
The Needs of Your Target Market Have Change
Remember, when everyone had a palm pilot and a blackberry? If you sold protective covers for those devices back then, you were probably rolling in dough. But, if you are still selling those same covers today, your business is probably bankruptcy.
Desires, needs, and technologies change all the time. If you want your business to thrive, you must be prepared to move with them. So its vitally important that you pay attention to what’s going on with your target market and pivot to continue providing solutions that meet their needs.
Your Business Isn’t Growing
Companies, especially those that are publicly owned, are responsible for one thing — growth. So if your business has stopped growing in key areas like revenue, market share, and customer acquisitions, it’s time to pivot.
Dr. Stephen Kalaluhi put it this way, “becoming fanatical about your key measurements will ensure you’re aware of the health of your business at all times. The moment productivity, efficiency, or profitability declines is the moment pivoting must occur.”
Your Heart Isn’t In It
Sometimes it’s not the market or technology that has changed, it’s your values and desires. Business is tough, and much of the work is thankless. To keep going in the face of those challenges, you need a compelling reason. You also need a compelling reason to motivate potential customers to buy from you. As Simon Sinek says, “people don’t buy what you do; they buy why you do it.” Therefore, if your values and desires have changed, then its time to pivot your business to match those core beliefs. By realigning your company with your values, you’ll find more motivation and attract more customers in the long run.
Things Are Good But The Muse Handed You Something Magical
In her book Big Magic: Creative Living Beyond Fear, Elizabeth Gilbert explains that, like humans, animals, and bacteria, ideas live on this planet and are swirling around us all the time. When we “get an idea,” one of those swirling thought forms has simply landed on us. Once it falls, we can either say yes or no to that idea. If we choose the former, then we must commit to seeing the idea through to the end, or it will leave us and attach itself to someone else.
We all have had the experience of having a great idea, doing nothing about it, and then later seeing someone else turn that idea into a huge success. That’s because ideas are valuable. While every idea isn’t for you, if you stumble across one that turns your current business dream into a movement, it’s time to pivot.
This doesn’t mean behaving irresponsibly or failing to follow through. We all know that business requires discipline. However, it does mean acknowledging that truly life-changing ideas are rare, and if you receive one, you must be courageous enough to act on it.
Are you thinking about shifting your business focus? In what way? Do these guideposts help you in making that decision? Let’s discuss in the comments below.