While pivoting your business strategy could be the breath of fresh air it needs, it could also be frightening to start anew and scrap the work you have done. If your current business strategy is not working as planned, you shouldn’t be afraid to take the plunge and adapt to a new reality, even if it means abandoning previous investments.
If you’re pondering the next steps for a successful business pivot, read on to fully understand what it entails and get the best tips before going forward with the move.
WHAT IS PIVOTING?
Simply put, pivoting is a business strategy that involves making significant changes to better adapt to shifting market realities, evolving customer needs, or technological changes. If you’ve reached the point in your strategizing where you’ve tried everything to fix your current strategy, pivoting is the next step; it can help give you a brand-new strategy that can help make your business model more profitable and sustainable while still making certain it meets the needs of your target audience.
HOW TO PIVOT EFFECTIVELY
Pivoting can be risky, but there are ways to reduce the risks and increase the chances of success. Here are some strategies and tips to help you pivot effectively:
Conduct Market Research
Before you pivot, you should get a better understanding of your target audience’s needs and preferences. The best tool to gauge consumer behavior is market research. This will help you identify new opportunities and create a product or service that meets their needs.
With these insights from your target audience, you may even realize you don’t need to completely change your product or service. In some cases, the startup just needs to offer a value-added product.
Analyze Your Competitors
It’s a good practice to look at what your competitors are doing to stack up against them. However, don’t confuse learning from your competitors with copycatting their services and products. As Jack Ma, co-founder of Alibaba, said, “You should learn from your competitor, but never copy. Copy, and you die.”
Competitor analysis provides valuable insights into the market landscape, enabling you to identify gaps, opportunities, and potential threats. This analysis can also help you identify potential partnerships with other small business owners.
Test and Validate Your Idea
Once you have identified a new opportunity, test and validate your idea before investing significant resources. This can be done through surveys, focus groups, or a minimum viable product (MVP) that allows you to test your idea with a small group of customers.
Communicate with Your Team
Pivoting can be stressful for your team, so make sure everyone in your company is on board with the new strategy before pulling the plug on the previous service and making major changes. Create a communication strategy that lays out your plans and the reasons behind them. This will help your team understand the changes and align all the areas before executing the new strategy.
Measure Your Progress
Set clear goals and metrics to measure your progress and determine if your new strategy is working. This will help you make informed decisions and adjust your strategy if necessary.
MEASURE YOUR PROGRESS
Set clear goals and metrics to measure your progress and determine if your new strategy is working. This will help you make informed decisions and adjust your strategy if necessary.
To learn more about pivoting or any other strategies to fuel your growth, reach out to the experts at StealthEnomics. Take the steps towards a successful entrepreneurial journey. Contact us today!
