Three Must-Haves When Considering A Business Pivot – They’re Not What You Think

With nearly 400 million users as of 2021, Twitter has a reputation as one of the most outstanding business pivots in global history. It started as Odeo, a platform for podcast subscriptions. Eventually, Odeo got threatened by the success of Apple's iTunes and out of fear of going under, the company took an entirely different direction – a micro-blogging application for random, business, and life updates. Now with a net worth of $40 billion, Twitter's pivot turned out to be a huge success.

Some of the most successful companies in the world today didn't start where they currently are. Instagram, Starbucks, Nintendo, and the computer giant HP, all made some major entrepreneurial decisions over the years to save or upgrade their businesses.

Pivoting is a popular term used in entrepreneurship that refers to a change or an overhaul in business direction and strategy. It's not to be confused with diversification – the latter means opening up new avenues while the former implies a complete overhaul. Pivoting is often necessary when a business isn't performing up to expectations or is getting suffocated by competitors or the economy.

"When you work towards something and the result isn't what you had hoped for, there is always a lesson to be learned," says Canadian social media strategist, Blair Kaplan Venables, founder and president of Blair Kaplan Communications. "We don't always achieve success on the first try and most times, we need to fail to understand what doesn't work before we learn what does. I often see an unsuccessful attempt as part of the process of achieving a goal."

When is pivoting necessary in a business?

For some businesses, the need to strategize might be as clear as night and day, and for others, the lines get a little blurry.

It might be a good time to consider pivoting when:

• The business isn't raking in nearly enough revenue after you've tried every possible tactic. Losses and debts may start to accrue at this time, or perhaps, the threat of bankruptcy looms.
• The intended market didn't receive the business as well as expected.
• The competition is overwhelming and there's no way to find a small niche for your brand.
• You may have overestimated the brand's potential during planning.
• You have a new passion for something else.

Pivoting isn't a straightforward process. It's a serious decision that requires a lot of planning and detailed work, and should only be undertaken when completely necessary.

The top three "must-haves" when planning a pivot

It's not just about funds and a customer base (which might be dwindling at any point). A successful pivot is mostly dependent on precise strategy and some major foresight. You'd be faced with major foundational questions and the answers should point to the three essentials listed below.

A surging, non-imaginary market with actual needs

Emphasis on "non-imaginary". Your target audience may be new and uncharted in the line of business, but you have to make sure they are not figments of an active imagination. To check this box, you need to perform a comprehensive market analysis – on the scale of the intended business. Another important step in this phase is to identify a sector of the market with the least formidable competition, or at least, the competition that's most likely to allow successful co-existence.

"You should always endeavour to spend time on social media where your customers are," says Kaplan Venables, founder of the I am Resilient Project, a community of people sharing resilience stories to help one another overcome life's challenges. "Many entrepreneurs just create business pages and leave them un-run, un-managed, and ignored. They unwittingly refuse to tap into the vast potentials of well-used social media. Knowing the type of content your audience desires will help guide you in creating suitable content for optimum engagement."

A solid break-in strategy

There's always room for improvement as a business gains more visibility, but much of the traction needed is garnered at the entry phase. How much impact will your break-in have on the business and its target audience? This isn't just about aggressive marketing and targeted promotion. It also has a lot to do with proving your quality and value, building a customer pool based on authenticity, and finally, daring to stand out from the competition. Even if you offer basically the same product or service, find a loophole for uniqueness.

A plan for long-term relevance

Many businesses that require pivoting were at some point stars of their niche. Along the line, they became irrelevant either due to overwhelming competition, complacency, or managerial problems. Before pivoting, you must set a plan in place to maintain relevance and stay on course in the long term. How will you retain your loyalists and grow your customer pool when new competitors pop up? You also need ideas to keep your team creative and passionate about consistent growth, otherwise, everyone would get too comfortable and the business starts a downhill journey.

"People do business with people they like, know and trust, and this relationship requires ongoing attention," Kaplan Venable says. "It's important to think about how your brand can be the solution to their problems and how your product or service will help your client feel like a hero." 

In conclusion, pivoting has nothing to do with quitting or giving up. In fact, it is the entrepreneur's strongest display of resilience and grit. It won't be the easiest switch up, but if you follow the right strategies and stick to a well-crafted plan, it's always worth it in the end.