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Have you ever found yourself at a crossroads with a business plan in hand and wondered whether to continue down a familiar path or take a new path? This is a classic dilemma for entrepreneurs. It’s about knowing when to make a U-turn and when to continue. It is a choice that will determine the success of your business and requires not only intuition but also knowledge of the market, business and vision.
When running a business, making these choices effectively requires a combination of strategic thinking and self-reflection. Here are 10 step-by-step strategies that got me to this point. We can confidently say that these strategies are proactive and empowering, not just reactive.
Related: The art of navigating “no” — when to keep going, pivot, or give up and stuff it down.
1. Relentlessly seek feedback from the market
One indicator that can determine the need for a pivot is general feedback from the market that the product is not meeting an essential need. If consumers consistently raise the same issues, it’s not just a coincidence. It’s data. Thoroughly examine this response and look for patterns and trends to determine if changes are needed.
2. Closely monitor industry trends
To get to the top, you have to have knowledge. Are you witnessing a change in consumer behavior? Is your industry being replaced by new technology? The tide could reverse and your current offering could soon be replaced by a better product? If so, this is a good indicator to adapt. For example, I transformed a retail company into an online-first business ahead of our competitors, which allowed us to capture a large share of the market early on.
3. Analyze your financial situation
Numbers don’t lie. Additionally, producing financial reports at short intervals can reveal whether you are on the right path and whether your current practices are sustainable. If your business is no longer growing or profits are consistently low, you may need to reconsider your strategy. Without profits, resources and morale can be depleted.
4. Clarify your vision
In some cases, pivoting doesn’t mean failure, but rethinking and adjusting your strategy. As businesses continue to change, so do entrepreneurs. Taking every step to revisit your business vision will help you stay aligned with your goals. If there are gaps, it may be time to pivot to ensure your current operations are aligned with your long-term goals and objectives.
5. Make the most of your team’s experience
Your team acts as your feet and eyes when you’re not around. Involving them in discussions about strategy may reveal aspects you may have missed. Hesitation in executing your vision may indicate something is wrong with your strategy. However, in some cases, their positive and determined attitude suggests that patience will pay off.
Related: Knowing when and how to pivot is the key to business survival. Here’s what you need to do:
6. Trust your gut, but back it up with facts.
As an entrepreneur, I’ve learned to rely more and more on my gut, but I strongly believe that the best decisions are data-driven. A combination of intuition and solid data analysis gives you confidence that the decision to pivot or continue is a risk, not a gamble.
7. It’s best to test before you leap.
Introducing small, controlled changes makes it easier to take a step forward before deciding to go all-in on a complete pivot. By approaching it this way, we avoided making potentially costly unwise decisions on the fly. This saves you the trouble of collecting data about potentially dangerous new directions.
8. Consider resource allocation
Do you have the flexibility to make changes on the fly? A successful pivot typically requires an investment of capital, the development of new skills, and even a change in company culture. Estimating resource capacity is essential. Rather than taking on everything and pivoting and stretching your resources thin, it may be wiser to focus on what’s working and optimize.
9. Seek scalability opportunities
Is your current business model growing fast enough? If not, you may want to change course. Examples include adding a service component to a product-based business. This creates new revenue streams and helps you reach more customers. This type of engagement can potentially extend beyond physical products alone.
10. Have patience and persistence
Last but not least, remember that perseverance is not about blindly following a plan, but about regularly adapting and improving your strategy. Patience will be rewarded. Even if the desire to jump ship is overwhelming, think about how subtle changes to your current plans could yield better results.
Related: Perseverance in the face of adversity is a sign of true success
Deciding whether to change direction or hold back is never easy. It requires a combination of courage, wisdom, and intuition. By implementing these strategies, I have not only taken my business to the next level, but also contributed to the evolution of my business in a way that has brought me results and, most importantly, satisfaction. .
Keep in mind that every business is different and the decision on what to do (pivot or continue) will need to be different for each specific situation. These key points will serve as a compass to not only face your entrepreneurial journey but also overcome it along the way.