When Is It the Right Time To Pivot Your Company?

When is it the right time to pivot your company? It's a question many companies are constantly asking. In this article, we'll discuss the key indicators of a successful pivot, what it means to pivot your company and popular examples of pivots in different industries.

Many successful companies have been able to expand their businesses by pivoting. A pivot is an act of changing a company's target market or business model. For example, Uber pivoted from UberCab to Uber. The two companies started the same but are now targeting two different markets.

What many companies don't realize is that they're already in the process of pivoting without realizing it. Many successful companies were once doing one thing and then changed to become something else entirely. 

Pivoting and Critical Indicators

Pivoting can be a risky move. But there are a lot of critical indicators that many successful pivots have in common. What puts a good pivot on the right path? A good pivot needs to align with your company's values, business strategy and strategic vision. It is where it can get confusing for a lot of people. In my experience, I've found it helpful to have an overall picture of the market, your company's capabilities, and your goals.

You can then take the pieces of this puzzle, put them together, and develop a good strategy aligned with your vision. It would be best to do it before moving on to the next step.

A good pivot moves your company in the right direction at the right time without creating too much disruption or destroying shareholder value. A pivot can be a potent tool when your business is in good shape, but the market is changing, or you could have done something better.

But to do it right, you need to know how the market is changing and what steps to take. You also have to have a clear picture of your company's goals. A plan can't be effective if you don't know where you're going.

Pivot, a change in direction

At its core, a pivot is a change in direction, but it's only good if you shift to a strategy that improves your company's prospects.

For example, it's not uncommon to see great companies think they have another five years of growth left in them. They do great things and make lots of money, but they are missing something. They're not as good as they could be, and their growth is slowing down.

To Pivot, the best time is when you see an opportunity to do something that will make you a much better business, but without making the situation worse.

The worst time to pivot is when it will make your company even weaker. It's possible to turn your company around 180 degrees, but that can lead to a complete collapse if you're not doing the right things.

Do you feel like you are struggling with putting "strategy" and "business growth concepts" in place that make a difference? Doing it all is overwhelming! Let’s have a honest discussion about your business and see if the Power of 10 can help you. Click “HERE” to have a great conversation with our team today.

Written By The Strategic Advisor Board - Michael Owens
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