Developing a new business idea, and then turning that idea into a reality, is one of the most exciting events in an entrepreneur’s career. However, starting a new business venture can be extremely difficult, even when it might be something you are knowledgeable and passionate about. When a company struggles with any one aspect of the business, recognizing the need for a change of direction can be referred to as pivoting. Failing to have an accurate understanding of the market for your product can lead to problems that cannot be fixed easily. Pivoting for a company can be a dramatic or small change, with either way having the overall goal to change the business model for a product, strategy, or idea that promotes company growth.
Many companies have successfully pivoted and experiences substantial growth. Many companies have used market research to successfully pivot. There are also many pivoting decisions that directly correlate with market research. Here is a list of common examples when market analysis proves a business pivot would benefit your company:
- Product Pivot – The way you see your product can be very different from how it is perceived by the public, but seeing how others will use it can help broaden your own perspective. Knowing exactly how your product is going to be used can be difficult, but researching consumer behavior with your product before launching can assist in how you market your product to the public. Conducting observation research to truly understand how individuals might use your product can also help determine whether new features are necessary to boost product sales.
- Marketing Pivot – If pre-launch testing identified your product as an item that should be a success, but it has yet to become one, analyzing your marketing strategy might be helpful. The way your product is presented to customers is crucial to whether or not they buy it. It might be necessary to come up with completely new packaging, advertising, or even location of where your product is being marketed.
- Customer Pivot – Customer segmentation is a critical aspect of marketing for a company. Determining who your customers are not only assists with how you market your product, but it also can work to help establish prices, location, and potential improvements. If you aren’t actually selling your product in the beginning stages of your product’s life cycle, you might consider pivoting who you are selling to completely.
- Technology Pivot – Because of the evolving tech world and the many start ups that have been born, ideas for apps and social media continue to appear. Before working to develop a new tech idea, it is extremely important to ensure that it’s not already out there, and that there is going to be a desire for that idea. Some of the biggest and successful pivots have been done by taking a tech idea and evolving it into something that was desired by the population.
- Competitor Pivot – If you know that your product has a direct competitor, knowing how to handle that competitor successfully will push you to make the most profit possible. Researching your competitors will allow you to determine what decisions you need to make to stay on top, whether that be adjusting price, changing the product, or moving your business in a new direction.
Most of the successful pivots that companies have conducted are done through balancing the positive elements while pushing out the negative. You should not drop everything to make your company or idea better. Use all your resources to determine which of these possible examples could be affecting your business. Also, remember there is no right answer; there can be multiple reasons for not being 100% successful. The most important thing you need to keep in mind is that change isn’t a bad thing, and to grow you must recognize what is not working.
Are you interested in using market research to pivot your business? Download our free white paper to learn how using market research can assist in helping you discover your market potential.
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