Yes, no blogs or Follow Friday’s this week. It was my birthday week so and between seeing everybody I’ve had limited time to be online. I promise to make it up with some spectacular people and posts in the next week! Apologies.
I had a fantastic conversation on pivoting with Paul Sullivan yesterday. Later on in the evening I was at my local watering hole speaking to small business owners who provided the blankest of looks when I discussed the concept. To my startup junkie followers pivoting is nothing new but, as always, startup / tech people often have some incredibly cool concepts that are not always translated to or understood by small business. So without further ad here is my attempt to explain pivoting to small business owners.
What is Pivoting?
Pivoting is a fundamental change in your business model or strategy.
- Perhaps you change your price or the way people pay you (from per use to annually)
- Perhaps you were running a coffee store but realized everybody was buying your breakfast meals instead (change in market)
- Perhaps you are a successful accountant who is now adding or focusing on payroll (change in features)
This is hardly a comprehensive list but shows a pivot can be a big or small change in your business. All that matters is that the pivot results in a new direction for your business.
When do I Pivot?
Pivoting is a risk. You should never change things for the sake of change. However, if your business is failing and the traditional marketing won’t bring people in the door and you continue to fail with retention it is likely time.
The easiest way to tell is that your customers will make it clear when you need to Pivot. If you intended on serving only coffee but everybody orders food, you pivot to a restaurant. Starbucks was once a wholesaler but pivoted to retail. Tynt, a technology attribution startup, will likely pivot into search prediction. When users use your product / service / establishment in ways you did not intend or you see customers for an ulterior use embrace them and consider a pivot.
Is Pivoting Bad?
NO!! If your business is successful, growing and profitable there is no need to Pivot. Yet if things are not the best and success seems unattainable pivoting makes natural sense. It does not make you inconsistent or a failure. It shows that your original business model may not have been as successful as predicted but that you are resilient enough to deploy existing resources for a new use.
Conclusion
Pivoting is a change in your business model. While the term applies to technology startups any business can and should consider the implications of pivoting.
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Alex, I was thinking about a great example of a pivot while watching Calgary-based tech success, Smart Technologies, complete their IPO this week.
Years ago, Smart Technologies started as a company providing LCD flat-panel projectors. In a relatively competitive space already dominated by large companies, their pivot came when they focused their attention on the screen rather than the projector. By adding intelligence to the whiteboard, they changed the way presenters interacted with their audience, and created a new niche for themselves. Nice pivot!
Thanks for dropping by and leaving a comment. Another great example of a pivot. I've had so many more examples over Twitter!
Out of interest, I'm assuming their product is the smart board?
Good article, buddy! I would never associate cd's with a coffee shop (Starbucks), but Starbucks has managed to do that too. The mugs, bags of coffee, and food always made sense, but cd's would be one successful pivot that probably wasn't asked by the customers. However – retail in general could be argued as the pivot instead of individual items. The implications of pivoting would be a great followup to read.
Brent, thanks for the comment. The implications is a good idea but would probably end up a series of successes and failures and require plenty of research. Perhaps when I finish this Community Sales series?
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