Learn How to Successfully Pivot the Business
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Jul 04,2020
- 13 Mins Read
Seasoned entrepreneurs can easily sense when the business is turning into a failure. In the adaptive landscape, business shutdown is not the end; an organisation can also pivot their business model to preserve itself. In the ideal situation, while pivoting the business, a company has to rebuild from scratch. It has to cease investments that were infused into the business previously.
Initially, every business explores the market and tries to mark its own space. When the company manages to attract customers, it gradually shifts its model into a specialised product. Through this process, a business transits into another business leaving previous business infrastructure and expanding the previous infrastructure. Dynamism is an imperative core of the business landscape and thus, companies should deal with products and services that are relevant.
While pivoting the business, it is vital to understand the process and elements included in it. Here is the information that one should know about pivoting.
Definition of Pivoting
A pivot is essentially defined as changing the business course when a business realises that the current offerings are not fulfilling the market demands. The primary objective of pivoting to uphold a company in improving its revenue or sustaining in the market. However, the way a company pivots its business is invariably distinct.
The Right Time to Pivot Business
Pivoting the business is not an intimidating task as it requires immense effort and strategizing. An organisation should opt for pivoting when the business is not in relevance with the market environment. Also, the business has utilized all other options to save itself from doom. Hence, pivoting the business becomes the last resort for the company.
Here’s the appropriate time to pivot the business:
- When the business is not flourishing even though a large amount of investments and resources infused
- When the business landscape is too much competitive
- When one product out of all in the business is grabbing customers’ eyes
- When the business owner’s perspective regarding the market changes
Concentrate on a Product Feature
To pivot the business, a company should primarily focus on the product features. It has to concentrate on a solution that would help realise desired results. Amass data about the customers’ requirements and introduce features that will address those demands. In this manner, a company will successfully pivot the business and gradually, get recognition in the market.
Create New Business Goals
When the business gets pivoted, it’s time to realign benchmarks, objectives and aims. So, use this time period to effectively design a novel business framework and start following it. Moreover, target a new audience and build new marketing strategies to catch their attention. However, it is advised to not compare goals and revenue of the pivoted business with the previous one as both the businesses worked in different landscapes.
Comprehend the Target Audience
If the company's product is not selling after pivoting the business, then it should not assume that there is something wrong with the product. Sometimes, the company makes follies while promoting the market or understanding its audience.
For instance, if a company has a B2B product then it has to sell it to a B2B audience rather than B2C audience. Understanding the audience is crucial when a business begins its journey from the beginning. Accordingly, it has to change its marketing strategies. These steps are important for sustainability and creating recognition in the market.
Understanding these essentials are crucial to pivot the business without hassles. Imbibe the above cited practices into the pivoted business to ensure a smooth entrepreneurial journey.
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