The art of pivoting (2024 Guide)

Hey UpFlippers,

In the unpredictable world of business, the ability to pivot could save you from an unwanted return to a 9-to-5 job and allow you to continue running your own company. Whether you're running a power washing business or a tech startup, knowing when and how to change course can mean the difference between sinking and swimming.

Today, we're diving into the art of pivoting—and why it might just be the smartest move you'll ever make for your business.

Embracing the pivot: A sign of business strength

First things first: Let's reframe how we think about pivoting. It's not admitting defeat—it's showing that you're smart enough to recognize when something isn't working and brave enough to try a new approach.

Remember, some of the world's most successful companies have pivoted. Twitter started as a podcasting platform, and YouTube was originally a video dating site. Imagine if they'd been too embarrassed to change course!

Pivoting can lead to unexpected opportunities. You might start a landscaping business and discover a niche in eco-friendly garden design. Or your cleaning service could pivot to specializing in post-construction cleanup. The possibilities are endless when you're open to change.

Actionable Tip: Set aside time each quarter to honestly assess your business model. Are you still meeting customer needs? Is there an untapped opportunity you're missing? Being open to change keeps you agile and ready for whatever the market throws your way. If anything, it might open up a new opportunity for a second business to run alongside your current one.

What drives businesses to pivot

Let’s break down what prompts businesses to pivot.

1. Economic factors: Recessions, inflation, or sudden market shifts can force businesses to adapt or die.

2. Competitive pressure: A new player in town or a changing industry landscape might require a fresh approach.

3. Tech advancements: New tech can make old business models obsolete (Think Blockbuster vs. Netflix).

4. Consumer behavior changes: Remember how many businesses had to pivot during the COVID-19 pandemic?

The key is to see these challenges as opportunities. When the market zigs, maybe it's time for you to zag.

Actionable Tip: Set up a simple system to monitor industry trends and potential disruptors. This could be as easy as setting Google Alerts for key industry terms or regularly checking in with your customers about their changing needs.

Pivot masters: Real-world success stories

Let's look at some businesses that nailed the art of the pivot.

1. Netflix: Started as a DVD rental service, pivoted to streaming, and then to creating original content. Now they're a household name in entertainment.

2. Slack: Originally developed as an internal tool for a game company. When the game flopped, they realized their communication tool had potential—and Slack was born.

3. Airbnb: During the pandemic, they shifted focus from short-term vacation rentals to long-term stays and experiences, helping them weather the storm.

But it's not just big companies that pivot into success. Joe's Power Washing in Cleveland pivoted to offer sanitization services during the pandemic, keeping the business afloat and serving his community in a new way.

Actionable Tip: Look for pivot stories in your own industry. What can you learn from their successes (and failures)? Could any of their strategies work for your business?

Your pivot playbook: Steps for successfully changing course

Ready to consider a pivot of your own? Here's your game plan…

1. Identify the need: Is your current model struggling? Are customers asking for something you don't offer?

2. Assess your resources: What skills, assets, and connections do you already have that could be applied in a new way?

3. Test the waters: Before going all-in, try your new idea on a small scale. Can your landscaping business offer a few snow removal services in winter? Could your t-shirt designs be featured on candles or other merch, too?

4. Communicate clearly: Once you're ready to pivot, make sure your team and customers understand the change and the value it brings.

Remember, pivoting doesn't always mean a complete 180. Sometimes, a slight adjustment is all it takes to make a big difference.

Actionable Tip: Create a "pivot team" in your business. This could be you and a few key employees or advisors. Meet regularly to brainstorm potential changes and how to implement them.

Wrapping it up: Pivot like a pro

Pivoting in business isn't about erratic changes—it's about making calculated moves to stay relevant and profitable. By staying alert to market changes and being willing to adapt, you're setting your business up for long-term success. Remember, it's not about being perfect; it's about being adaptable.

Have you ever considered a business pivot? If so, what's holding you back? If you've already pivoted, what advice would you give to others? 

Reply to this email with your comments—we'd love to hear from you!

Stay flexible and adaptable!
The UpFlip Team

This week’s recommendations

🏋️ For a deep dive into business adaptability, check out Pivot: The Only Move That Matters Is Your Next One by Jenny Blake.

🎥 Watch our YouTube interview with William Milliken to learn how he translated his digital marketing background into a $200K-a-month dog poop-scooping empire.

🧐 Read up on how to start working for yourself in our guide: Self-Employment 101.

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