While startups are driven by their dreams of making it big with a business plan built around an innovative idea, they should be prepared to change course when the uncertainties of life and business demand it. History is replete with stories of startups that flourished through embracing change while others failed by remaining inflexible.
When Should Startup Companies Consider Pivoting Their Business?
Keep a close watch on the demand for your products and services. If your competition is constantly gaining on you in market share, it might be time to evaluate the feasibility of your product and business strategy. Perhaps you are better off with a more specialized product or an entirely different one. When your current product generates little buzz in the market or no excitement within your own company, it is time to consider pivoting.
You may also be forced to pivot by forces entirely beyond your control. These might be geopolitical events, stock market crashes, or even pandemics that change the shopping and working habits of people. All these events could push you to change course.
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Startup companies should have no regrets about pivoting. It’s important to take inspiration from stories about startups that found success through pivoting. A good business plan for your startup should include pivoting scenarios just as it should have exit strategies. While most startup founders are generally great technical experts, understanding market strategies can be difficult. It can be very beneficial to hire advisors to help you create plans for any and all business contingencies.
At Larta Institute, we assist startup companies with commercialization assistance programs in the US and abroad. Our worldwide network of entrepreneurial experts and advisors guide startups through good times and bad. Our proven system will help you pick the right path for your business, even including how to rework your product or business model to align with the realities of the market. To learn more about when to pivot your business, or for more information about our services, contact us today!