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How to Know It’s Time to Pivot Your Business Model
- Business pivoting is a strategic shift in a company's direction, involving changing its product, service, target market, or revenue model to steer it in a new direction based on market demand, feedback, or opportunities.
- Stagnant or declining sales, customer feedback that isn't positive, burn rate that is unsustainable, and constantly putting out fires, are all signs that it is time to pivot your business model.
- Some of the world’s most successful companies, like Netflix and Slack, saw their stride after a successful business pivot.
- Before making a pivot, you should ensure you have the necessary resources, that there is a market for the new direction, and it aligns with your long-term goals.
- Types of pivot that businesses can consider include zoom-in pivot, zoom-out pivot, customer segment pivot, technology pivot, revenue model pivot, channel pivot, product pivot, and complete business model pivot.
- Pivoting your business model isn’t about admitting failure – it's about learning and adapting.
- Joining Foundr+ for $1 will give you access to 1000+ business lessons, 30+ courses, world-class instructors, and live coaching sessions to get advice on pivoting your business model.
- Founders should follow their instinct, and understand when it is time to pivot their business models, as doing so will enable their businesses to stay on track, move in a new direction, and ensure continued success.
- Most business pivot at least once during their journey, and external factors that can cause a pivot include technological advances, changes in customer's behaviour, and the economic environment.
- Choosing the right type of pivot can transform a business. For instance, Netflix pivoted from DVD rentals to streaming, which now generates over $31 billion annually.
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