The most critical decision for a business leader to know is when to stay the course versus change direction. Focused Energy details down why businesses pivot, as well as how and when makes pivoting makes sense for your organization.
Embracing opportunities, pivoting like a pro
Most companies evolve slightly over the years; it's a natural part of business.
As time goes on, organizations learn more about their business model, revenue and customers. They may also uncover the issues and opportunities key to growth.
Pivoting is evolving with intent.
It’s changing direction, without changing vision.
Vision + Learning = Innovation
It is an opportunity to conquer new territory, to revolutionize and innovate.
Examples of successful pivots
- Starbucks: Launched in 1971 selling espresso makers and coffee beans. After a fateful visit to Italy, the CEO decided to brew and sell its coffee in a European-style coffeehouse. This transformation turned Starbucks into the global sensation it has become today.
- Avon: Founder David McConnell was a traveling bookseller when he realized that his female clients were more interested in the perfume samples accompanying his books. He pivoted to sell perfume products directly, recruiting women to sell to women on his behalf. Eventually he re-imagining the brand into the iconic powerhouse it is today.
- PayPal: First launched to “beam” IOUs to/from PDAs (personal devices prior to the smartphones). In time, it acquired financial services X.com, paving the way to process payments via email. When PayPal inked a deal to become the official online payment system for eBay sellers, it secured its future as a payment processing king.
Tips to find opportunities
- Hunt for patterns
- Adopt an opportunity mindset
- Know your audience (and if it is changing)
Just remember: successful pivots are vision-driven. While you may grow beyond your initial dreams, stay true to yourself and your vision.
Not sure where to start?
If all of this seems overwhelming or you need a hand developing goals, get expert help. Focused Energy can connect the dots between your business finances and operational strategies.