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Pivotar can be the difference between the life and death of a company. Those who did not have sad epitaphs: Kodak: “Close to the movie after digital photos became king.” Blockbuster: “The transmission ignored while Netflix rewrite the script.” Nokia: “People connected, but lost on smartphones.”
Changing the course of half of the week can be painful, but as the previous examples show, the alternative is worse. Think of a ship whose captain sees an important storm on the horizon. Of course, the route has already carefully drawn the leg. But continuing without counting the new conditions would obviously be nonsense.
When pivoting and how are the questions that every entrepreneur has to face. Here we show you how to do it.
Related: pivoting my beginning kept it to fail: this is how you can help yours
To pivot or not pivot
Sometimes it is necessary to pivot, but you don’t want to exaggerate either. A study by Duet Partners shows that new companies that pivot once or twice have a better growth of users 3.6 times and have more than 50 percent less likely to climb prematurely than new companies that do not turn at all or more than twice.
These data show that how your pivot addresses is crucial. Ash Harvard Business Review Notes, the risks of being wrong can be substantial, including, among others, waste time and resources or send your team in an unproductive direction.
Before making a pivot, ask yourself your reasons to do so. Are you tilting at external pressure? Is there too much competition? Did a new opportunity arose?
These can be reasons to pivot, but not always. When Google entered the online forms ring, I was very concerned, how could my company, Jotform, compete with one of the most powerful technological giants that exist? I would lie if I said that changing direction did not happen to my head, and the idea of escaping some unknown territory where the largest and most formidable software companions had not yet stepped on.
But I stayed with that, and I’m so slippery I did. Not only did we survive at Google’s entrance to the market, we flourish. That is because we make ways very well. When you find an idea that works, do not stop it. Evaluate what makes your product unique, execute it brilliantly and focus on the data, not in competition.
Follow the market
Pivotar is not the same as chasing a fantasy flight of the moment. There is an easy way to distinguish the difference, and that is himself if his change is at the service of his clients or his own ego.
Many entrepreneurs expect their product to interrupt an entire industry, to the Amazon or Google. I do not advise going that way, but there is a kind of gold relationship when it comes to finding the right market. A small market means that it does not have great competitors, and its business can expand along with the market, provided that that really happens. If a market is too small, it gained any growth. In that case, you must change your product, in other words, pivote -a -ter serves a larger market.
To keep up with what customers want, act as an anthropologist. The pandemia saw many examples of companies that anticipated that the needs of people would change the change and worked to interact with customers accordingly, the examples include adding live chat options to the websites or including feedback forms at the end of the ends. Find out where the market is, what do customers want and go from there.
Related: If you do not learn to pivot your business, you will see it perish, this is how you see a successful pivot.
Consider ai
The generative boom of AI is underway, and leaders must think about how to integrate it into their services. But anyone who remembers the dawn of Dotcom era and its many busts (Pets.com is a perfect example) includes the importance of stepping carefully.
In his new book, Pivot or die: how leaders prosper when everything changesAuthor Gary Shapiro argues that leaders who do not act on AI run the risk of almost instantaneous obsolescence. And although Genai can be new, there are still lessons in history that can be carried out. Shapiro suggests that companies use their basic strengths as a starting point and seek opportunities that can be executed in the short and long term.
“I think this was in history will decrease as it never has such a radical transformation into technology and innovation and opportunity for people to do incredible things,” he says. “[Going forward] It requires a lot of thought, entrance … Where do we want to go? Where do we want to bet and how much do we want to bet? “
There is no unique solution to determine when pivoting or in what direction. But as the world enters a new technological era, full of promises and dangers, leaders must think deeply in how appropriate they are to make bold movements and understand the reasons for tea to do so.
