How To Tell When You Need To Pivot

There is no particular formula or strategy that makes a business successful. At any point in time, there may be a need for a change in strategy or the totality of the company in order to fare better in the market and be in control of all unfavorable factors. This begs the need for a major decision in business management.

In fact, it is well-known that successful businesses that have become popular had at one time or another fallen short in the past. Therefore, it is correct to infer that no business can be described as perfect in the beginning days. There would be times to chart a new course for the survival of the business. Interestingly, most budding entrepreneurs are oblivious of the signs that indicates when making a pivot is indispensable. To provide solution, here are the signs are associated with pivoting:

  • When the competition is extremely high

Competition is an important factor in business growth that is beneficial to both the business enterprise and the customers. Generally, it leads to greater developments over time. However, when competition is extreme, a toxic situation is created where a young company would not be able to fare well in competition against other companies. This situation is worse when the companies in this context wields better resources (human and material).

  • Emerging trends in the market

The market evolves bringing new consumer needs that should be satisfied. This appears in the forms of needs and businesses are usually at the mercy of such needs in the market. Often times, these changes in the market come with need for a company to veer in a new direction. At this point, a company would survive such events when it adopts new strategies in management of both human and material resources that will cause increase in service delivery greatly. Therefore, the unfavorable trend affects growing establishments. The solution is usually pivoting, though pivoting may not be easy to go about.

  • Poor growth and development

Some business are plagued by unfavourable factors that continually hinder their growth and development. Growth is a noticeable event in any organization and can be accessed using certain measurement tools. Over a period of time, if a company’s progress is static with a rising debt profile and missing of targets. At such state, the implication is a need to quickly pivot. Pivoting would stimulate efficiency, productivity and efficiency of the business enterprise.

  • Repeated failure to achieve mission and vision of the company

By and large, businesses are established with certain objectives in mind. These objectives could be a passion felt by the entrepreneur or a need that should be met in the society. A budding entrepreneur channels great energy towards the achievement of such objectives. This usually involves repeated and concerted efforts over a period of time. Interestingly, the frequency of efforts may not result in great success. However, it is the correctness of the effort  that will determine the success of the company. Undoubtedly, the vision and mision guides the entrepreneur but in the case where it is not achieved, a new course will need to be charted. This in other words is pivoting.