How to Pivot Your Business Strategy By Executing These 7 Steps in 2024

Key Takeaways:
  • Pivoting your business strategy is a smart and necessary move when your current strategy is not working.
  • Pivoting your business strategy requires a systematic process of identifying the problem, analyzing the data, generating alternatives, evaluating the options, choosing the best option, implementing the pivot, and monitoring the results.
As a business consultant, I often see entrepreneurs who are stuck in a failing strategy and refuse to change course. They keep investing more time, money, and energy into a losing proposition, hoping that things will turn around - but this is a recipe for disaster.

Instead of doubling down on a failing strategy, you need to learn how to pivot. Pivoting is the art of changing your business model, product, or market when you realize that your current approach is not working. Pivoting allows you to test new ideas, learn from feedback, and adapt to changing customer needs and preferences.

In this article, I will share some tips on how to pivot your business strategy when things go wrong. I will also show you some examples of successful pivots from famous companies like Netflix, Instagram, and Starbucks.

Why You Need to Pivot Your Business Strategy

Pivoting your business strategy is not a sign of weakness or failure, rather it's a sign of strength and resilience. It shows that you are willing to learn from your mistakes, listen to your customers, and embrace change.

Pivoting your business strategy can help you:
  • Avoid wasting resources on a dead-end strategy
  • Find new opportunities for growth and innovation
  • Gain a competitive edge in a dynamic market
  • Increase customer satisfaction and loyalty
  • Improve your brand reputation and credibility
How to Pivot Your Business Strategy

Pivoting your business strategy is not a random or reckless move. It is a strategic and data-driven decision and you need to follow a systematic process to pivot your business strategy effectively. Here are some steps to follow:
  • Identify the problem. 
    • What is the main reason why your current strategy is not working? Is it because of a lack of product-market fit, a shift in customer behavior, a new competitor, a regulatory change, or something else?
  • Analyze the data. 
    • What does the data tell you about your problem? How are your key performance indicators (KPIs) affected? What are the feedback and complaints from your customers, employees, and stakeholders?
  • Generate alternatives. 
    • What are some possible ways to solve your problem? How can you modify your value proposition, target market, revenue model, distribution channel, or cost structure?
  • Evaluate the options. 
    • What are the pros and cons of each alternative? How feasible, viable, and desirable are they? How do they align with your vision, mission, and values?
  • Choose the best option. 
    • What is the most promising alternative for your business? How confident are you that it will work? What are the risks and assumptions involved?
  • Implement the pivot. 
    • How will you execute your new strategy? What are the steps, resources, and timelines required? How will you communicate the change to your customers, employees, and stakeholders?
  • Monitor the results. 
    • How will you measure the impact of your pivot? What are the success criteria and metrics? How will you collect and analyze the data? How will you iterate and improve based on the feedback?
Examples of Successful Pivots

To inspire you, here are some examples of successful pivots from famous companies:
  • Netflix - Netflix started as a DVD rental service that competed with Blockbuster. When the internet became more popular, Netflix pivoted to a streaming service that offered unlimited movies and shows for a monthly fee. This pivot allowed Netflix to dominate the online entertainment industry and become a global phenomenon.
  • Instagram - Instagram started as a location-based app called Burbn that let users check in, post plans, and share photos. When the founders realized that the photo-sharing feature was the most popular, they pivoted to a simple app that focused on filters and social networking. This pivot made Instagram one of the most popular social media platforms in the world.
I hope you found this article helpful and informative. If you need more advice on how to pivot your business strategy, feel free to contact me. I am a business consultant with 25+ years of experience in helping entrepreneurs and businesses grow and succeed.