The concept of pivoting is a current darling of the business strategy illuminati. As it relates to business, it means little more than making changes to a marketing strategy, pricing, supply chain, product or service offering, or strategic approach to business.
Business Is Not Static
It might be a cliche, but it’s true: One constant in business is change. For a startup business, this might mean that the original vision is not compatible with the current economy, customer demands, suppliers, or competition. Perhaps the appropriate in-depth research was not conducted before the business was started or internal or external factors changed soon after startup.
For a more mature business, maybe there has been a shift in the customer base, competition, product or service demands, or newer products or services available to purchasers.
Regardless of the factors that change in a business’ environment, the business itself must be adaptable.
Embracing change provides businesses opportunities that might not be available if they cling to the status quo. Changing or pivoting various elements in the business can have a profound, positive effect on its long-term growth, profitability and sustainability.
Components Of Change
There are numerous components in any business that might need changing such as:
- Strategic approach
- Employee skills
- Supply chain
- Products or services
- Customer service
The list, of course, is almost endless depending on the business, industry, location, and economy.
Pivoting: The Game Changer
Wherever the business is in its life cycle, change is inevitable. For those business owners who are reluctant to change, business stagnation is a definite possibility that may loom in the future. But for business owners, who take an opposite approach and understand the importance of progressive change, opportunities are almost limitless.
The time for change is not at some distant time in the future. Change can and should be continuous. Minor changes can take place daily and weekly while major changes must be properly planned with scheduled execution dates. The idea is to always have some type of forward momentum.
Measurement Is Vital
The most important element of change is measurement. If the action or change is not measured, then it is difficult to determine if the change produced the desired outcome. Sales, phone calls, marketing, customer complaints, expenses, employee turnover, new product acceptance, target marketing, etc. can all be measured. When changes are measured and work as intended, then those changes can become permanent (until changed again). And if the results weren’t what you were looking to achieve, then those changes can be either revised or completed eliminated.
Not All Changes Will Work
Certainly not all new ideas should be implemented nor will the changes that are implemented turn out as planned. It’s important to know what small adjustments can be made that might produce be a positive impact with the least amount of disruption and cost. Finding efficient changes is both the key and the hardest part, as luck would have it!
If nothing is ever changed in a business, the status quo remains the same, which is why one of the most important aspects of business growth is understanding that the mere act of changing one or more elements in a business has the possibility to produce growth and increased net profits. Perhaps, now is the time to consider some type of pivot for your business.