Pivoting Your Business in Order to Save It

According to some statistics, 9 out of 10 startups result in a failure. Nonetheless, people who believe that they are destined for greatness won’t allow such a thing as failure to end their efforts. Even giants such as GM, Tesla Motors and Apple had some rough patches, but going through them with their head held high made them bounce back in no time. With this in mind, when the going gets tough, you can either fall into desperation, or pivot in order to save the future of your company. Here are a few things you need to know about the latter option in order to pull it off.

1.  Facing your failure

Ok, the first step is always the hardest one. In order to start pivoting your business, you must first acknowledge the fact that things aren’t working out. A lot of people try to justify their failure by coming up with excuses such as personal issues, fatigue or even the fact that the beginning is always tough. Nevertheless, you need to learn how to read the subtle signs showing you that your startup is not encountering a temporary rough patch but is actually failing.

2.  Change the business model

The next step on this path lies in changing your business model. It doesn’t have to be anything radical like creating a completely new brand identity. This usually includes things like bringing in some fresh talent from the outside and trying to keep this group temporarily independent from the rest of your company. In time, if this change turns out to be efficient, you can slowly start with the smarter resource distribution (the one that would bring the greater ROI).

3.  Get the money

The greatest problem with pivoting is that, although it is not as expensive as starting a business from scratch, it can still cost a small fortune. Unfortunately, seeing how your business is already in dire straits, your budget may not be able to handle that. Therefore, you need to look for a way to get the money you need in order to pivot. This usually means going to a bank or credit union and applying for a loan or even reaching out for private capital to get things going. Either way, this is just a means to an end and you need to go with the solution that will give you the best long-term results.

4.  Rebranding

Another thing your business will definitely need is a bit of rebranding.  As previously stated, you don’t have to change your identity completely, but you do need to alter the way you appear in the eyes of the public. This time, your company’s image needs to rely on three main pillars a) research, b) communication and c) documenting everything. Keep in mind that even if your company does succeed, you may be forced to rebrand again in the future, due to the fact that your target audience will constantly change.

5.   Setting realistic goals

In the end, you need to have some realistic goals in store for your company in order to see how well your pivoting efforts are going. The best way to do so is to divide your work into four categories: service, social, profit and growth. In the service category, you should focus on improving your customer service. The social is there to show your positive influence on the local community. The profit part is probably the most important, but also the easiest to track since it can be displayed in percentages. As for the growth, this might be a bit trickier, but you can try keeping track of it through the number of employees and increased/decreased workload you are facing.

Conclusion

Finally, we need to address one more thing. The fact that you have switched to a business course that suits you more at that moment, doesn’t mean that things have to necessarily stay that way. Keep in mind that only those businesses that are willing and ready to change have a chance of surviving in the dog-eat-dog world that is the modern business world.