Pivoting is a double-edged sword – it can be the missing element for your business’ success. In this article, learn how to pivot your business to make sure you stay afloat and grow, even after taking a radical step.


What is Pivot in Business?

A pivot is a way of changing your business model, strategies, or even the features of your products. Its main purpose is to help your business improve its revenues and survive in the market. Certain factors may require you to pivot, such as changing market conditions, tight competition, internal conflicts, or unfavourable economic conditions.

Pivoting doesn’t only happen when your revenues take a nosedive. You may also need to pivot when you’re doing well so as to meet the ever-evolving demands of the market. It is crucial to regularly analyse trends and determine if it’s time to innovate and explore other opportunities – this way, you’re not the one left behind.


How to Pivot Your Business

Pivoting your business is a process. It isn’t a decision you can make overnight. You have to consider several variables to see if it’s the right move – it can be a double-edged sword which doesn’t always lead to success. So you need to think through the process and understand the impact on your business before you embark on this initiative.

Basically, here’s how to pivot your business:

Understanding your product or service

Look at the products you currently have – are sales where they need to be? Is there a need to upgrade the product range? Are your products user friendly? Do similar products offer better value? What is the customer feedback?

Identify the major selling points and limitations and see if there is more that you can do or sell to your customer base. For example, Fujifilm, a photographic film manufacturer, made good use of its expertise with nanotechnology in creating skincare products. At first glance, photography and skincare products are totally unrelated, however, Fujifilm still managed to create a billion-dollar brand using their existing capabilities.

If you understand your product and/or customer base well, there’s a chance you can also discover its untapped potential. 

Understanding the marketplace

External factors can have a huge impact on your growth. Most of the time, they are connected with your products’ ability to sell and their profitability. These factors include:

  • Audience – Are you targeting the right audience? In what way do you deliver your marketing messages? How do your customers react upon using your product?
  • Competitors – What can you learn from your competitors? How can you improve on your offerings to increase sales? Can you compete with your competitors?
  • Location – Do you market your products in the right place? If you have a physical store, does it receive enough foot traffic?
  • Economic condition – Is the economy currently doing well? Is your business model effective given the current climate? How can you adjust to present market demands?
  • Regulations – Are there regulatory compliance laws you need to meet? 

Using the right tools

To make strategic decisions, use the data you have at your disposal. The following tools will provide you with the right information to analyse, make smart decisions and grow:

  • Financial reports – Compare your financial performance against targets, prior years and industry averages – you might see valuable information that will allow you to spot trends and determine your next steps.
  • Forecasts – Read current news and forecasts on your industry. Find out if there are opportunities for long-term trends that you can avail of.
  • Analytics – Business and data analytics is an essential source of information. Through this, you can see your consumers’ buying patterns and behaviours, their demographics, the demands of your products, and many other key pieces of data.

Testing the changes

Pivoting does not guarantee immediate results and therefore it is always necessary to test out the changes you’ve made – keep testing and innovating until you find what works for you and your business.


In Conclusion

Pivoting in business is a good way to respond to challenges – look at it as an opportunity to learn, grow, and thrive. Remember, your mindset as an entrepreneur matters a lot.

Start pivoting by understanding your products and the marketplace. Use the right tools in making decisions, and always test the changes you’ve made.


Let Us Help

If your business has a turnover of over $1 million, ABJ Solutions is offering a complimentary one-hour meeting to help answer questions and model critical decisions with you. Get in touch with us today so that we can help guide you through these challenging times.

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