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Tag: Pivoting

  • You Don’t Need a Crises to Pivot | Entrepreneur

    You Don’t Need a Crises to Pivot | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The ability to pivot is a valuable skill in any business toolbox. Fundamentally, it is about being able to change direction in order to provide a product or service that best meets the needs of your clients. And, as we know, they are not a constant.

    The whole concept of pivoting has been brought to the forefront in recent years thanks to the pandemic and all manner of reactions to the consistently changing landscape. It has been a means of surviving and thriving in tumultuous times.

    Yet, we don’t need a crisis or challenge to embrace these very principles and build an adaptable business.

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    Joanna Swash

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  • Knowing When — and How — to Pivot Is Key to Your Business’ Survival. Here’s What You Need to Do. | Entrepreneur

    Knowing When — and How — to Pivot Is Key to Your Business’ Survival. Here’s What You Need to Do. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In business, staying ahead is a constant game of strategy. You’re always rethinking what you offer, who your audience is and how to make it all work — and let’s not forget keeping a close watch on the market, your rivals and trying to predict where demand and tech trends are heading.

    Traditionally, this process unfolded methodically, following a more predictable path. But then came 2020, a year that shattered predictability and made adaptability an absolute necessity. That year, a Harvard Business School survey showed that 71% of executives from more than 90 countries said adaptability was the most important quality they looked for in a leader.

    I felt the turbulence as I steered my business through the uncharted waters of the global pandemic. I had just launched my business and it was very challenging given that it was important for us to meet clients face to face and attend events in person. Plus, working with high-risk businesses in the banking and payments industry, I also have to pivot frequently to adapt to the ever-changing regulatory landscape.

    But here’s what I’ve learned: Precisely during these moments of chaos and upheaval, the art of pivoting shines the brightest.

    Related: How Pivoting Saved My Business When Things Didn’t Go According to Plan

    What is pivoting in business?

    In the context of business strategy, a pivot represents a substantial shift in course, a recognition that the existing products or services are no longer in sync with market requirements. The primary aim of a pivot remains unequivocal: augmenting revenue or bolstering a business’s standing in the market. Yet, the finesse of pivoting extends beyond the act of change itself. It’s about making the right changes at the right time. It’s the difference between merely staying afloat and thriving in the long run.

    When should you pivot?

    Determining the ideal moment for a pivot is a crucial decision. Pivoting isn’t a magical solution for all business problems. However, you could consider a pivot when:

    • Substantial investments of resources and capital yield minimal progress
    • Business development hits a plateau with no significant upward trajectory
    • Customer response to your products falls short of expectations
    • Intense competition in the market hinders growth
    • Only a single feature or service of your company gains meaningful traction

    Tips for successfully pivoting in business

    Change isn’t a threat in business — it’s your greatest ally. Here are some tips on embracing change and mastering the art of pivoting:

    Tip 1: Don’t become complacent

    Never rest on your laurels. Just because you’re at the top today doesn’t guarantee you’ll stay there tomorrow. Maintaining your position requires relentless effort and constant assessment of your competitive landscape.

    In the early days of Capitalixe, I faced a significant setback. We lost one of our biggest clients, accounting for over 50% of our revenue. It hit us hard, and for a moment, it felt like the ground had shifted beneath us. But because I had not been complacent prior to this, I had a pipeline of prospects ready to go. I tirelessly worked to build new relationships and quickly adapted our approach. It wasn’t easy, but we recovered and grew stronger from the experience.

    Here’s how can you steer clear of complacency and keep your business on the winning track:

    • Stay hungry and never stop striving for improvement. Keep looking for ways to make your products or services even better.
    • Actively seek feedback from clients and stakeholders to identify areas for improvement. Don’t just assume you know what they want. Ask them for feedback and then use that feedback to make positive changes.
    • Don’t get so wrapped up in your own business that you forget to see what others in your industry are doing. Learn from their successes and failures, and use that knowledge to stay ahead.

    Related: The Sunk Cost Fallacy is Ruining Your Decisions. Here are 3 Life-Changing Lessons I’ve Learned From Pivoting

    Tip 2: Seek revolution, not evolution

    Don’t settle for incremental progress. Be willing to take bold, disruptive leaps forward. Radical change often yields the most significant market impact.

    Early in my entrepreneurial journey, I saw a gap in the market. High-risk businesses were underserved, thanks to their complex challenges like ever-changing regulations and high charge-back rates. Instead of shying away, I embraced the opportunity. With a revolutionary mindset, my team of experts and I dove into these uncharted waters. We crafted innovative financial solutions tailored to their unique needs. Our bold approach paid off, and we didn’t just evolve, we reshaped the market, proving that in the face of challenges, revolution often yields the most significant impact.

    Here’s how to embrace this revolutionary mindset:

    • Encourage your team to question existing norms and practices. What can be done differently and more efficiently? Where can you push boundaries and defy convention?
    • Understand that disruptive change often yields the most substantial rewards. It’s about reshaping your industry rather than just fitting into it. Look for opportunities to challenge the market and set new standards.
    • Don’t fear change. Instead, embrace it. Be open to radical ideas and unconventional approaches. Create an environment where innovative thinking is encouraged and rewarded.

    Tip 3: Swift action is non-negotiable

    When the world moves fast, your response must match its pace. Delay can be as detrimental as inaction. Adapt and pivot with urgency. Here’s why swift action is key when it comes to pivoting:

    • When you’re dealing with a rapidly changing landscape, timing is everything. Opportunities can vanish in the blink of an eye, and challenges can escalate if not addressed promptly. Being quick on your feet gives you a competitive edge.
    • Proactive adaptation allows you to stay ahead of industry shifts and market trends. Instead of merely reacting to changes, you’re positioned to anticipate them, making you a trailblazer in your field.
    • Clients today expect quick responses. Whether it’s addressing their concerns, delivering products and services or rolling out innovations, meeting these expectations is important for retaining customer loyalty.

    Related: Is It Time to Pivot Your Business? These Are the Only Two Signs You Need to Look For.

    Final thoughts

    Change is not a foe but a friend in business, and adaptability is your greatest asset. Remember, staying the course without room for adjustment is a path to obsolescence.

    Embrace change, innovate fearlessly and never hesitate to challenge the status quo. In moments of uncertainty, pivot when necessary and always be the architect of your success story.

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    Lissele Pratt

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  • How Pivoting Saved My First Business From Failing | Entrepreneur

    How Pivoting Saved My First Business From Failing | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Starting a business is like setting sail into uncharted waters, and the initial excitement can often be met with unforeseen storms. I relate my experiences as an entrepreneur who, teetering on the edge of adversity, made a critical decision to pivot.

    From grappling with market dynamics and culture to reimagining the very essence of my business model, this journey stands as a testament to the vital role that adaptability plays in the challenging world of business.

    Related: The Pivoting Playbook: How To Successfully Turn Adversity Into Opportunity

    Our business model

    In 2016, I started a venture in the UAE, together with my co-founder. Our experience in education and educational management totaled around 50+ years in the Middle East, and we were adamant about reshaping the tutoring landscape in Saudi Arabia. We came up with the idea to centralize the tutoring landscape, as it was, at the time, scattered. Every traffic light you would stop at would have dozens of pieces of paper stuck onto it with the names of teachers, their phone numbers, subjects taught and hourly rate.

    So, we created an app that allowed parents to “order” their teacher and slot in a session at their convenience. The teacher would then be “delivered” to the home of the customer using the Uber model, and the session would then be delivered and paid for after completion. We decided to start with B2C, create a buzz, and then on the back of that, enter the B2B market.

    Marketing

    Our sales team traveled around the country, hitting the malls, educational institutions and pretty much anywhere people would gather in order to show the concept, get feedback and close clients. The campaigns were moderately successful, and we managed to close several clients on the spot, collect feedback and make small amendments to our services accordingly. This not only gave us proof of concept, but it also helped us identify any issues that we might have overlooked in terms of the practicality of our business model.

    The launch

    After we had generated interest through our presence, not only on the ground but also through our online marketing efforts, we were ready to officially launch our project. The expectations were high based on the legwork we had put in and the results it generated for us. However, despite all our initial efforts, when we officially launched … crickets!

    My co-founder and I were utterly baffled; how could it be that despite our data telling us that we were clearly onto something, the market didn’t react as we had expected it to? The answer was … culture!

    Related: 5 Ways Your Brand Can Pivot to Thrive in Uncertain Times

    The problem

    2016 was right before the online app surge in Saudi Arabia, and although people were very interested in the idea during our marketing campaigns, and many clients signed up on the spot, the idea of having a stranger come to your home and teach was met with apprehension by the people at the time (now, in 2023, this has changed dramatically).

    The pivot

    So, because we had our product ready, our teams in place and our consultants ready to commence, we adapted our business model and turned to the corporate sector. I put on my work boots, went completely old-school and started knocking on doors. With my laptop in hand, I was selling our services to anyone who cared to listen. I approached the larger corporations in the MENA region, and it turned out to be an immediate success!

    In no time, we had training contracts with the likes of IKEA, STC, The Ritz Carlton, and even Souq.com (now acquired by Amazon). And before long, we were able to close country-wide long-term agreements with several of them.

    Related: The 4 Secrets to a Successful Pivot

    Lessons learned

    The reason we were able to turn our B2C model into a B2B success was that the corporate landscape was already used to bringing in consultants for various corporate training sessions, which made entry to this market a breeze for us. Now that we were generating income, we utilized the customer base of the larger corporations to offer our B2C services through employee-loyalty programs they had with their customers. This helped us overcome the cultural barrier, as we were now not “a stranger” coming to the client’s home, but a legit partner of the brand they already trusted.

    As entrepreneurs, once we think that we have an idea that can be revolutionary in a certain market, we often go all-in expecting the market to respond as we would like it to. In my case, we were able to pivot and turn it around by hitting the B2B market first, then reverse engineer and turn to then still be able to enter the B2C market and be successful. However, I am sure that there are many situations where an entrepreneur was not able to pivot and had their brilliant idea go bust. So, make sure that in your business model, you leave room for the possibility to pivot, giving your business idea a second chance to survive.

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    Serge Antonie

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  • Master the Ability to Pivot Your Business to Jumpstart Success | Entrepreneur

    Master the Ability to Pivot Your Business to Jumpstart Success | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Business plans are like mining for gold. Miners had to start with only an educated guess on an area, canvas a stream, then pan and sift endless piles of dirt. Prospecting is largely gone, but it’s a useful metaphor for how business leaders take a problem, solve it, refine it and continually revisit and adapt — even to the point of tearing down the essential points of their business. This ability is called “intellectual range of motion,” and it’s one of a business leader’s most important tools — especially if you’re selling your expertise.

    Peloton, for example, continues to display this intellectual range of motion. While it had a few pain points — lower subscription growth, stock redemption issues and a wave of layoffs — Peloton shows a willingness to explore and change direction.

    Today, Peloton has 5 million customers and is worth $3 billion. However, despite significant brand equity, Peloton is substantially changing its business model. The company is muddying the waters of the service-based business vs. product business dynamic and rolling out a “Fitness as a Service” product where people can access Peloton’s training and instructors without the bike itself.

    Related: Why Founders Should Always View Pivots as Opportunities

    Intellectual range of motion: A powerful tool

    The extent to which an idea can be altered based on an entrepreneur’s intuition and imagination falls under their intellectual range of motion. A wide range of motion enables an entrepreneur to turn an idea into a revenue growth opportunity. In contrast, leaders of firms with narrow intellectual ranges cannot recognize an opportunity because of the limits of their imagination.

    Intellectual range of motion is more highly valued in a founder of a services business than it is in a product business. This is because services are much more malleable than products. For example, modifying a product to take advantage of an opportunity might require sourcing new raw materials, reconfiguring an assembly line, re-writing software code, developing a new manufacturing process and more. With services, there is none of this, so the time from idea to execution is measured in days and, sometimes, hours.

    As a founder myself, I have grown my firm by increasing my intellectual range of motion. For example, the sector I operate in, business mastermind communities, is over 200 years old with a few hundred firms. All of these firms are horizontal providers, meaning they do not serve a specific vertical industry. My firm, on the other hand, serves a single industry — the professional services industry.

    This industry specialization has appealed to many and has allowed our firm to grow consistently. The idea for this form of differentiation was found in another business entirely: SaaS. The software category has matured, and many successful SaaS companies now specialize in a vertical industry. My idea was this could (and should) work in the business mastermind community sector — and it has. Recognizing a winning strategy in another industry and successfully porting it into a different one is an example of intellectual range of motion.

    Related: Is It Time to Pivot Your Business? These Are the Only Two Signs You Need to Look For.

    Key strategies to improve intellectual range of motion

    For entrepreneurs and founders who want to gain better intellectual ranges of motion, there are a few critical actions to take:

    1. Ask: What does the world need from me right now?

    This question is not asked often enough. The reason this question is neglected is that business owners fall into the routine of delivering what they have always delivered. Due to the benefits of the experience curve, the more often a firm provides a service, the lower the cost and the higher the margin. Business owners are driven by profit and will not discontinue a profitable service line until absolutely necessary. As a result, they stick to their knitting too long and miss opportunities. Over time, this behavior restricts one’s intellectual range of motion.

    Blockbuster Video once provided us with a remarkable service: hit movies watched at home for rent. They stuck to VHS tapes but missed mail-order DVDs and video streaming. They went bankrupt as a result, and we now all binge-watch Netflix content. Blockbuster Video no longer fit the market; the market had evolved to services that came to them and, eventually, to fully digital and personalized streaming platforms. This is something founders in professional service firms have to ask themselves consistently to remain competitive in the market, but the lesson remains for large companies like Blockbuster as well.

    Related: Don’t Make the Same Mistake Leaders at Kodak, Blockbuster and Xerox Made When Disruption Comes to Your Industry

    2. Locate wasted resources in legacy operations

    A common reason new ideas that could lead to break-out growth opportunities aren’t pursued is that entrepreneurs incorrectly think they do not have the resources. However, the resources they need are available, they are just consumed with legacy operations.

    Legacy service offerings are ripe for optimization. Entrepreneurs should look for ways these services can be delivered with far fewer resources. These newly liberated resources could be allocated to today’s wild idea that could be tomorrow’s golden goose.

    Related: 4 Mistakes to Avoid While Scaling Up Your Infrastructure

    3. Produce a roadmap of future offerings

    It is best to organize the service-offering roadmap by identifying boundaries. Today’s business and tomorrow’s business are always competing for scarce resources. There is only so much money, time and talent to go around. In the absence of a roadmap organized by time boundaries, today’s business wins the competition for resources. A roadmap makes sure tomorrow’s business gets the resources it needs.

    For example, boundary 1 of your roadmap should be defined as offerings in the market for the next year. Boundary 2 should be defined as an offering in the market in two years’ time. And boundary 3 should be defined as offerings in the market in three years’ time. By landscaping out the roadmap in this fashion, an entrepreneur’s intellectual range of motion is increased by stimulating their imagination.

    Related: 6 Ways to Push Your Limits and Accomplish Things You Never Thought Possible

    Business leaders looking to jumpstart their success — or simply maintain it — should look to see how they can improve their intellectual range of motion. In the long term, they may just strike gold.

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    Greg Alexander

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  • Entrepreneur | Free Webinar | March 8: Pivoting to Success: When and How to Pivot Your Business

    Entrepreneur | Free Webinar | March 8: Pivoting to Success: When and How to Pivot Your Business

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    Are you struggling to make sales?

    • Is your competition increasing?
    • Are you having cash flow issues?
    • Are you feeling defeated and not sure what to do next?

    These may be signs you may need to pivot your business. Don’t know where to start? In this informative webinar, award winning entrepreneur and prominent investor Kim Perell, will reveal why pivot is an essential part of building a successful business. As market conditions change and technology evolves, so must a company’s ability to adapt. Through her own riveting real-life examples, Kim will break down the reasons why pivoting is crucial for companies of any size and how you identify if it’s time to make a change.

    Register today to learn about topics including:

    • Why pivoting is crucial for companies of any size
    • Recognizing 3 signs of when it is time to pivot
    • The 5 pivots every leader faces
    • The one thing never to change in any company
    • Developing the winning mindset to adapt to change

    Join us for this free webinar on March 8th at 3:00 PM ET.

    About the Speaker:

    Kim Perell is an award-winning digital marketing technology CEO, top US female angel investor, and bestselling author with twenty years of experience taking companies from $0 to annual sales to $1 billion. She sold her last company for $235 million after going broke ten years earlier. She has been named one of AdAge’s Marketing Technology Trailblazers, Business Insider’s Most Powerful Women in Mobile Advertising, and Entrepreneur of the Year by the National Association of Female Executives. Perell has been profiled by The New York Times, Forbes, and more. She lives with her husband and two sets of twins in Miami. Connect with her at https://kimperell.com.

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    Entrepreneur Staff

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  • 3 Ways You Can Pivot Your Business to Accelerate Your Growth

    3 Ways You Can Pivot Your Business to Accelerate Your Growth

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    Opinions expressed by Entrepreneur contributors are their own.

    Most people think that once you “niche down,” you’re stuck. It’s not true. When you run a successful niche business, you can speak to an incredibly specific audience on topics they care deeply about. That kind of personalization is increasingly sought these days, as 71% of consumers say they crave individualization from their brand interactions.

    But choosing a niche doesn’t mean you’re locked into your original choice forever. It’s not only possible but profitable to change lanes every once in a while — even if you’ve been driving on the same highway for a long time.

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    Drew McLellan

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  • Scale or Fail: 4 Ways to Run a Successful Social Impact Business

    Scale or Fail: 4 Ways to Run a Successful Social Impact Business

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    Opinions expressed by Entrepreneur contributors are their own.

    One of the first lessons I learned as founder and CEO of Truly Free is that meaning well does not guarantee success. Years ago, when we were a startup, I had it in my mind that all I needed to be successful was an unshakeable vision to make a positive social impact, a must-have product, not a nice-to-have product and an easy-to-use website. Reality dispelled that notion quickly.

    Anyone new to ecommerce learns quickly that having a website doesn’t mean website traffic just appears. Basic logistics, however, forced us to reconsider everything — the cost to ship our natural laundry detergent costed as much as the product itself.

    We went back to the beginning. This didn’t mean simply finding a solution to the immediate problem, although that was central to our effort. We started with our business’s core goal: providing a safe product for families, especially children and those with specific allergic reactions from chemicals and harsh ingredients. The outcome was us completely re-envisioning the modern laundry room and how we did business.

    Four key elements emerged as we scaled our business into a successful social impact brand. These critical components required more than good intentions and a website, but the journey — and more importantly, the results have generated a positive social impact far beyond our original vision. Here are four ways social impact businesses can boost their brand’s purpose and bottom line

    Related: How to Know When to Give Up, When to Pivot and When to Persist

    1. Make relationship building a core competency

    To us, customers are family. This approach is more than simply a way of thinking — it is our way of doing business.

    With every decision, we challenge ourselves to reflect on whether we would do this for our family. Would we want our family to use a product with these ingredients? Would this offer or price be fair and something we would recommend to our families?

    Every detail matters. Attention to detail may be a well-worn idea. Still, when customers actually witness the attention and energy put into every detail — from their experience on the website to the ingredient list on the product — they begin to see your company not just for the products you generate but also for the values and mission you are putting out into the world. These efforts result in authentic transparency and trust, the foundation for a solid and long-lasting relationship.

    For example, we put every ingredient on products, so our customers can research for themselves. Based on customers’ feedback, it has played a major role in creating the long-term relationships we aim to establish with them.

    Relationship building may be a unilateral initiative, but it goes a long way with every customer. We understand transactions pay bills, but our experience proves that relationships build companies.

    2. Connect humans to humans

    Our non-toxic fabric softener dryer sheets are handmade by women rescued from poverty and trafficking. Our customers know this and resonate with this. Our customers also know the money they spend with us goes towards helping free women and children from trafficking, shelter and feed orphans and even a village in Haiti that is hearing impaired.

    We make it a priority for our customers to know the power of their purchase and how it positively impacts other people’s lives.

    Transparency combined with purpose makes for good business. Amplifying the human element of your business right out of the gate can rapidly communicate your mission statement and strengthen your position as a social impact business.

    3. Prioritize convenience

    Everyone’s busy. We don’t want hassles, and neither do our customers. We may have the best intentions, but people won’t subscribe to our offerings if we are hard to do business with.

    Brands must always prioritize convenience for every customer interaction. For example, as an ecommerce, subscription-based business, we thrive on subscriptions. If brands can make a customer’s life easier by automating an offer, like a subscribe and save model, then they should integrate that into their website, promotions and upsells. At the same time, we also recognize that a new customer may not be ready to make a recurring commitment after the first brand interaction. To ensure you’re presenting options that will enable potential new subscribers to familiarize themselves with the brand, businesses should offer a way to buy single transactions at checkout and a compelling offer or bundle that will further entice them to try out the subscribe and save with no strings attached.

    At first, some brands might think this model reduces subscriptions when it results in a “dating” opportunity, where a new customer can get to know the brand without the total commitment upfront. As a result, and if done correctly, your subscription base will likely continue to grow.

    By prioritizing convenience in every customer interaction, you are empowered to reduce friction and ultimately meet every existing and potential customer’s unique and situational needs.

    Related: 4 Suggestions to Improve Convenience for Consumers

    4. Reimagine the business model

    As noted at the beginning, logistics forced us to reimagine our business model for the better. Shipping for laundry detergent costs as much as the product itself. Our original plan was a surefire way to go out of business fast.

    What was the problem? Weight. What could be done about it? This question challenged us to approach laundry detergent in a whole new way.

    Water makes up the bulk of detergent. Removing the water would solve the problem and help us fulfill our mission of eliminating millions of single-use plastics. This solution led us to pioneer an entirely new vision of the cleaning and laundry space for homes. Today, we sell refills, not giant plastic bottles that end up in landfills.

    Business doesn’t have to be business as usual. Taking a closer look at operational challenges introduces opportunities to reconsider product development completely. And when you take a hard close look at the details, you can completely reimagine the direction of your business for the better.

    Related: 8 Ways To Pivot Your Business To Kickstart Growth

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    Stephen Ezell

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