The term “pivoting” is certainly not new to business. In fact, a business strategy often undergo tweaks and changes since the beginning of time. When something is not working, you simply do something else. Or in today’s case, when there has been a significant economic impact to companies worldwide, we are forced to shift our perspective and strategies as we begin to innovate and create a plan B or maybe even a plan Z.
When Should You Pivot?
Although for some companies, it may be very clear when a pivot is needed, for others, it is not so obvious. Here are a few signs that you may need to consider making a business strategy pivot:
- Your people, processes, or profits are declining in some way.
- You are lost amongst competitors, no longer have a differentiation point or your niche has become overcrowded.
- You have hit a plateau and are no longer seeing results.
- The preferences or needs of your target market have changed.
- Your approach has changed, and you want to innovate and/or reposition.
- An outside force has significantly impacted your customers behaviors.
Steps to Effectively Make a Business Pivot
After identifying the need to make a pivot, it is important to fully think through the options and attempt to minimize risk. Start by identifying your target market, their purchase drivers and your company’s differentiators. In order to best serve your customers, you must know what they care about, what they need, and what they want.
Next, begin to dig into the specific area you are wanting to address and ask yourself two questions:
- What is working?
- What is not working?
Spend some time brainstorming and really thinking through these areas. Consider people, processes, products, and everything in between. A SWOT analysis can be an impactful way to identify where your company excels, any weaknesses or opportunities you may have, and threats in the business landscape that you have not yet considered. You may also try conducting a problem-solution-value analysis here to build upon your areas of opportunity.
Now, set your vision. Before you can put together a plan, you must know where you are wanting to go. This is a very important component that cannot be overlooked. It is important to make your vision both challenging but also realistic. If your company has a vision statement, you might also bring it into consideration at this time.
Finally, after you have defined why you need to make a strategy pivot and where you want to go, it’s time to put together your plan.
Execution is a very important step however; many companies have the tendency to jump directly toward execution without doing the proper prep work. The prep work decreases the risk of making an uninformed decision.
What If I Need to Pivot Quickly?
It is important to note that there may be times where your business needs to make quick, smart pivots. During these circumstances, you may not have the luxury of time. However, you should still give some thought to these three areas.
- Why am I making a pivot?
- What am I hoping to accomplish?
- How am I going to pivot?
There is a huge difference between changing your digital ad copy versus launching a new product. The time spent on the decision should vary accordingly. The more risk involved, the more thought you should invest.
If you have recently made a strategic business pivot or need guidance as you begin to navigate your next move, contact Promote On Purpose today. We are here to amplify your vision.