While pivoting in the startup world means moving to a new strategy, it should often lead to radical change across the enterprise. But that is not always the case. Often a business has only one important problem that needs to be resolved and only one aspect of the business needs to change. There is more to control than most aspiring entrepreneurs know, but it is generally accepted that start-ups need to rotate only when necessary, and that this must be done with considerable planning and careful execution.
You want to make your business a stronger version of itself
- The desire to bring your business to a new level of performance requires changes and adjustments. This requires a break with old habits. It will require a change in attitude with a full understanding of the importance of development. Ask yourself, “What will really change to get better?” Then set the goal in the next quarter to increase efficiency and remain competitive
The global needs of the market are changing
- As the market evolves, you need to adapt your business to meet changing needs. This will become increasingly necessary as the fourth industrial revolution will continue to bring about changes and disruptions from new technologies and business models. Keep an eye on your customers’ needs as well as the evolution of the market to be able to turn around and be where your customers need you.
They no longer serve your target market
- Like technology, business tastes are constantly changing. If your target audience wants a different way of operating, you need to adapt or restrict your niche to a marketplace that wants your product or service as it is. The attitude “that’s how we’ve always done it” will not serve your business and will ensure its survival.
They spend too much time putting out fires
- This is a great indicator that your business needs to change if you feel like you spend more time each day firing and feel every day that nothing has been achieved. When that happens, it’s time to step down, reassess, and plan at a higher level. Your employees, your processes or your profits are declining, It might be time to discuss the possibility of a pivot if one of the following points decreases: people, processes or profits. Is employee retention low? Is culture difficult or too critical? Are there inefficiencies in the process or execution? Is performance low? Are you coming too late to market trends and affecting your prospects? Get a perspective from trusted advisers and take action.
You stopped growing
- Growth indicates that what you do works. However, as your business stops growing, your business needs to pivot. Become fanatical about your key metrics, stay informed about the state of your business at all times. The moment when productivity, efficiency, or profitability decline is the moment you need to pivot.
You’re No Longer Seeing Results from The Things That Made You Successful
- The biggest indicator your business needs to develop is when you do the same things you’ve done before are not achieving the results you want. Many organizations make the fatal mistake of doubling their efforts. Repeating the same things with more effort and expecting different results is the definition of insanity.
They cannot see a viable path for future growth
- Successful companies always strive for growth. Growth can be measured by an increase in income, or it can be measured by an increase in efficiency. When you cannot find a viable way to grow, it’s time to shift. Sometimes companies just have to do more and sometimes they have to move or change direction.
Your customers and employees leave you
- Focus on servicing your customers and maintain excellent relationships with your suppliers, buyers and customers. Know what they value and stay ahead of the competition by creating a positive culture that is open to creative ideas and invests in people. If you do this and continue to experience a high termination rate and lose customers to the competition, it’s time to change.
What you offer is no longer relevant
- When your customers needs change, your products could become obsolete. You need to be consistently and constantly working to adapt your product to change technologies and consumer demands, or your risk becoming extinct.