In this world of constant change, no business can run long enough in the market without adapting. As the business world is changing rapidly into the new media age (or the digital age), business owners must evolve and pivot accordingly to keep pace.
So, what exactly is a pivot in entrepreneurship?
A pivot is when a company’s business strategy is shifted in response to market or customer preferences. Several factors contribute to a business pivot.
However, turning the path of a business, whether big or small, is no joke. Make a single mistake, and you are out of the game! That’s why strategizing when and how to pivot your business is a crucial task.
Thankfully, several entrepreneurship programs on the internet claim to help business owners pivot at the right time. But does it help? Let’s find out!
Why do Businesses Need to Pivot?
Business is all about evolving, trying new things, and seeing the results. The necessity to pivot a company has reached unprecedented heights due to a rapid global transformation. More and more industries are taking advantage of digitalization, even the historically not initiatives. Ad companies, for example, are shifting their focus from banner advertisements to programmatic ads or content marketing.
Depending on the industry, the reason for pivoting might be pretty diverse. For instance, pivoting helps start-ups establish a viable idea that will sell to customers and generate a profit. On the other hand, developed enterprises shift to expand a company’s existing base and explore new products or markets to increase revenue. So, keeping an eye on the current market trends is crucial for the long run.
However, does that mean companies can jump into any trend and go on with it? No. Companies must pivot following the customers and stay relevant to them.
When is the Right Time to Pivot?
Do you know what do companies like Instagram and Starbucks have in common? They pivoted their focus into a new direction at the correct time and became industry icons. A good entrepreneur must understand when to pivot and how often.
It is the right time to pivot if:
- There is intense competition in the market.
- Customers are not engaging or responding to your products/services like before.
- There’s a halt to your company’s growth.
- There’s no progress even after investing capital and effort.
- The market trends are changing.
However, pivoting your business too frequently means not sticking to an idea long enough to implement and test it, while pivoting too rarely results in losing the grasp in the market. A skilled entrepreneur must analyze and simulate alternative situations in a long-term vision and critically take all the necessary business knowledge to select the best pivot path.
How Do Entrepreneurship Programs Help Businesses Pivot?
An entrepreneurship program helps you know when and how to shift your business strategies for a maximum ROI. These programs guide entrepreneurs to turn a feasible idea into a profitable business.
Entrepreneurs learn how to:
- Locate a business opportunity- Locating or identifying a business opportunity is the first step toward a strategy. Look at the market trends and insights, observe your competitors, determine the customer needs, find gaps in the marketplace, and carefully scrutinize the environment.
- Identify the target audience- If your products are not selling, it can be because you’re targeting the wrong audience. You may have a marketing plan directed more towards the B2B companies. In that case, pivoting your business plan can help you directly sell to B2B companies without changing the product.
- Strategize before taking a step- Before you decide to execute your business, test and develop a comprehensive pivoting plan that involves all of the core departments of your firm.
- Choose a goal that aligns with the business- When you take your business on a new path, it changes how it worked earlier. Set new goals that align with your pivoted business; for example, target new revenue goals.
Some valuable entrepreneurship programs we recommend are:
- Entrepreneurship Essentials by Harvard Business School Online
- Become a Digital Marketer Nanodegree Program (Udemy):
- Introduction to SEO: Tactics & Strategy for Entrepreneurs:
- Financial Analysis for Decision Making from Babson Online
- E-Commerce Essentials: How to Start a Successful Online Business by Skillshare
- Financial Engineering and Risk Management Part 1 from Columbia University
It’s never an easy feat to be a business owner, especially amid Covid-19. Get the maximum ROI and skyrocket your business to new heights! With the entire globe embracing the digital age, now is the perfect opportunity as an entrepreneur to enroll in one of these courses and learn how to pivot your business at the right time successfully.
Tell us your pivot story and inspire budding entrepreneurs!