How to Pivot Effectively

You’ve put everything into your startup; blood, sweat and tears and despite all your best efforts, the business just doesn’t feel like it’s working. Before you think about funding or a line of credit to boost your bank account, pivoting your business may be the better route. 

But what is a pivot? Doesn’t that mean you’ve failed? 

Absolutely not. Pivoting involves changing your business strategy or product to better align with what your target audience wants. The process entails altering direction when your initial strategy proves ineffective. Making this choice can be challenging, as you’ll need to acknowledge flaws in your original idea. But it’s bold and, although it is an emotional journey, pivoting can effectively save your bacon, turning your business from a flop to a success. 

There are plenty of examples of businesses that effectively pivoted. Take Twitter for instance. One of the most iconic pivots involves the evolution of Odeo into Twitter. Initially conceived as a platform for discovering and subscribing to podcasts, Odeo’s founders grew apprehensive as iTunes monopolised the podcasting realm. The company issued a two-week challenge to its staff to come up with alternatives. They opted for a radical shift, embracing the concept of a micro-blogging platform focused on status updates.

So, like Odeo, if your business is always playing catch-up, your competition is hot on your heels and is doing it better than you, don’t let your startup plateau further. 

Here are five tips to help you effectively pivot.

Redefine the Journey

Don’t delay and start digging deep into the direction of your business. Analyse your marketplace. Who are your audience? Are they who you thought they would be? Have a good look at what your competitors are doing. This will all help to determine your unique selling proposition and perhaps it’s not what you originally thought it was. 

This is also the time to look at what’s working. What’s at your core and what are your strengths? Look at what aspects of your business you want to keep. Remember you don’t have to start again on absolutely everything. Think about your financial investment and be clever when it comes to deciding what is for keeps. 

Listen, Listen, Listen

What makes a pivot work? Your people. Who can help you pivot effectively? And how will it affect them? You need your team behind you. Just like Odeo, Twitter was born from gathering ‘the people’ and listening to their ideas. Be honest, be steady and bring the right members of your team on the pivot journey with you. Pivoting is about acknowledging the truth and not hypothesising. 

Communicate the New Vision

To avoid resistance from stakeholders and your team you must communicate your redefined business effectively. You’ll need to explain very clearly what your goals are and why you’ve made the decision to pivot. It’s best to be open about the benefits of pivoting alongside the risks. Carefully considering the channels of communication is equally important. Your Tier 1 investors perhaps require a meeting or phone call, your team need a face-to-face, whilst you might like to prepare a report for minor stakeholders. 

Face the Criticism 

Here’s where you need broad shoulders and your feet need to be rooted firmly in your new direction. Your team may show a fear of change. There will be many unknowns, and this is their job. Be prepared to listen to their concerns. You may be experiencing a lack of resources and a pivot may rattle the investors, especially if more money on the table is needed. However, stay focused on what has worked despite these setbacks and be confident. This is your big chance to make it work! 

Be Open 

Startup life is always evolving and a constant ability to take on feedback, and implement changes as necessary is required. Your pivot solution is not the final line in the sand. 

Having an idea and running with it is an exciting journey but also a risky business. Pivoting might well be the next thing for you. Be open minded and explore the opportunities pivoting can provide.

 

At Love the Idea, we work with our clients to help turn their ideas into success stories. Don’t hesitate to contact us if you’re considering a pivot. This is an exciting time of change for you and we’d love to be trusted to be part of it.