Often, a business starts off trying to solve one problem in the market and realizes that its product isn’t the one to solve that problem. Instead, a business owner may take intellectual property or other products that have been created and adapt them for other purposes. In the business world, this is known as a pivot. When is it a good time for your company to consider and execute a pivot?
You Have the Right Product for the Wrong Market
You may discover that your product that was meant to help golfers improve their swing is actually better suited to help quarterbacks improve their throwing motion. Instead of being stubborn and attempting to market to golfers, it may be better to market to quarterbacks instead.
You Have the Wrong Product for Your Market
Let’s say that you were trying to sell a product that aims to track how consumers use the Internet to buy products. After developing the product, you may discover that your product is better at tracking what companies do with the data that they have regarding consumer behavior. Therefore, you may be better off tweaking your product to do a better job of serving the people who you want to sell to.
Your Product Has Evolved or Become Obsolete
Over time, the product that you sell or the market itself will evolve and change. What may be in demand today may be considered useless or obsolete in just a few months or years. Adapting your product to make it more in line with what the people want can help you sell it to new customers or keep your existing customers.
Pivoting Is Not an Admission of Failure
Pivoting is not an admission that your product or service is a failed one. Instead, it shows that you are willing to meet the demands of the market as they are as opposed to what you want them to be. History is littered with examples of famous brands or well-known products that started off selling products or services completely unrelated to what they sell today.
Pivoting Could Help Secure Funding
The most important thing that a small business must have is funding. Without funding from supporters, investors or lenders such as a bank or credit union, there is no company. Without funding, there is no money to make products, buy equipment to provide services or pay workers. To get that funding, it may be necessary to pivot to show that your company is viable and that you can make a profit at some point either now or in the future. If you need funding or any type of financing to help your company grow and thrive a company like ACN could be a valuable partner to have.
One thing about business that you can be certain of is that nothing is certain. While your business plan could be a great map to future success, disruptions can happen to any company that you may not be able to plan for. Therefore, it may be necessary to pivot and adapt for the sake of your company and the time and energy put into it.