How has your Market Feedback been? Do you think you need to pivot?
If yes, let dive right into it!
What is Pivoting? Who can pivot? When should you pivot? How do you take the action of pivoting?
This is the 5th part of our start-up development series.
So, Let’s quickly ask some important questions, shall we?
- Do you have a business you’re developing at the moment?
- Have you taken your product or service to the market yet?
- Were you able to make a sale?
- Do you think (based on your market feedback) that you can make a profit from it?
- Is it scalable?
You shouldn’t find it hard to answer these questions if you have been following the series. Click here for the previous parts of this Development Series to follow through.
Basic economics stipulates that business is an ongoing concern, which means that most businesses exist with the mindset of being around in the nearest future.
For the business to continue due to trends and market adjustments, change in demand and supply, business owners make certain decisions either to make a U-turn or to change completely or partially or make certain adjustments on their product or services or even change their industry entirely.
According to Startup.com, Pivoting is essentially a shift in business strategy to test a new approach regarding a startup’s business model or product after receiving direct or indirect feedback. This is one of the fundamental concepts of lean startup methodology.
Pivoting is consistent when it comes to an ongoing business.
It means changing from one product to another or making an alteration on your product to match market demand.
It could be because of the high price of production or the fact that consumers have a better alternative.
The action of pivoting is done using market feedback.
Why should you Pivot?
Business is always experimental, there is no absolute state.
Businesses pivot every day. Your duty as the business development manager is to evaluate your strategies and business modules at every point in time in proportion to the market, your return, production capacity and adjustment in market trends.
Your service could go out of trends, returns decline, revenue drops drastically. At this point, you can not afford to remain where you are. If you do, the business would close, you sure don’t want that. You look at market adjustment and you make decisions to adjustments to trends.
Importantly, note that if your business will survive the nearest future, you’ll always have to change strategy. You should not be very slow in making these decisions. Once you find out that the current models are not working, you change immediately. Pivot quickly! Always look out for opportunities, models(if any).
Entrepreneurs that practice lean startup methodology are encouraged to question everything — from their Initial idea to their design choices, to any features they’re considering adding. In the lean process, entrepreneurs discover their Minimal viable Product (MVP) which is typically released to a select group of test customers to determine what improvements need to be made. Pivoting is part of business development.
How do you know it's time to pivot?
It is not necessary that your business has to be failing before you pivot.
First of all, there is a reason why you started the business.
Pivoting is not quitting!
One thing a lot of Founders struggle with when making the tough call to pivot: fear of being branded with that big, red “F” for failure. Society in general conditions us not to be a “quitter.”
Waking up day after day and grinding away at something that isn’t working isn’t perseverance – it’s insanity.
The gift of letting go of this idea is that it gives you permission to make a different choice.
At the end of the day, the important thing to remember about pivoting is that change is just part of the startup process.
How to pivot effectively
- Do it as soon as you can
- Pick new goals that align with your vision.
- Don’t scrap what you’ve already done, find a way to integrate it into the new idea.
- Listen to your customers
- Make sure your pivot presents opportunities for granted.