In the last decade, entrepreneurship has grown in popularity and industry leaders have begun to emerge. However, despite having numerous success stories to visit, there are also countless examples of entrepreneurs who failed spectacularly because they didn’t know when it was time for them to pivot or persist with their existing business model.
When it comes to launching a company, we will all confront obstacles. Although we will all experience obstacles, our responses will be unique. Sometimes all we need is a little more time, money, or exposure. Occasionally, we must make a change. We have the product, but we’re selling it to the wrong people, it’s too pricey, missing key features, or doesn’t answer the proper issue. In these circumstances, we must alter our tactics without altering our vision.
But how can we determine when to stick it out and when to change course? It isn’t always so straightforward. So, in this piece, we’ll look at several firms that have successfully selected the best course of action and learn from them how to choose the best option for your company.
When entrepreneur Erik Ries’ New York Times best-selling book “The Lean Startup” was released in 2011, the phrase “pivot or endure” began to acquire steam. The word is used to describe instances in which an entrepreneur encounters a commercial issue and must decide whether to continue in the same route or alter course and update the product.
Perseverance is seen as a stubborn quality that prevents businesses from progressing. When an entrepreneur fails to pivot when they should, they risk destroying their own concept. However, sometimes all you need to do is be patient with your consumers and keep your head up.
‘Fake It Till You Make It’ is a phrase that means “fake it until you make it
Reddit is my favorite example of a firm that has endured despite adversity. With over 170 million unique monthly visitors, Reddit is already well-known as a social news network. When it was appeared in 2005, though, hardly one wanted to use it. Reddit, like any other social media platform, is only as strong as the people who use it. Reddit recognized the value of their concept of building a community where people could share and debate content. It was just a matter of lighting the match.
So they created a lot of phony accounts and used them to interact with the website. They would engage in debates between themselves using these phony avatars, and over time, actual users began to join in. They were able to develop into the billion-dollar corporation they are today by not giving up in the early days and throwing in the towel.
Pivoting is difficult for anybody, not just business owners. When we think of pivot, we think of a mistake. This, however, is not the case. Before a product or service is properly optimized, it goes through many iterations. Your company is going to collapse if you aren’t expanding and listening to client input. So, rather than thinking about pivoting as a way to fix a mistake, we should think of it as a way to grow. Youtube and Slack are two firms that have made incredibly successful pivots.
From a dating app to a video-sharing platform, there’s something for everyone.
We’ve all heard about YouTube. Many people are unaware that YouTube was not originally intended to be a video-sharing site. It turned out to be a dating service… Instead of creating a description about yourself as we do today on Tinder or Bumble, you would submit a video explaining your ideal spouse and then search for matches. The site has a low initial user base and a poor retention rate. The founders, on the other hand, observed something unusual. People who did utilize it weren’t simply submitting films of themselves; they were uploading footage of all kinds of things. After that, the co-founders turned their concept into a free video-sharing platform. After that, the rest is history.
A Communication Platform’s Beginnings
Unless you work for a firm that utilizes it, you may not be familiar with Slack. With about 10 million daily active members, it is one of the largest professional chat and messaging platforms in the world. Slack’s creators, on the other hand, had no idea it would grow to be as enormous as it is today. It wasn’t even their initial concept. The creators initially intended to create Glitch, a PC game. Although the game flopped, it did have one feature that was incredibly beneficial. They utilized an internal chat tool that was incorporated into the game to communicate between the New York and Canadian studios. They switched their focus after seeing the potential of the chat function to marketing it to businesses in need of a messaging network. Since then, the firm has been a huge success.
Important Points to Remember
When it comes to operating a company, all entrepreneurs confront challenges. “Do I wait or do I alter course?” is one of the most prevalent questions. Observing consumer feedback is a common way to get the solution. They discovered that users only wanted to connect with a site that already had discussions going on it when they created Reddit; the business model was fine, but they had to fake it until they made it. Youtube flipped their company to deliver greater value to its users after seeing how they used the site. Slack was once part of a bankrupt firm, but the founders were able to reuse it and sell it to companies all over the globe after realizing the value it brought.
Frequently Asked Questions
What is the difference between pivot and persevere?
A: Pivot refers to a slam move, which is usually done by quickly turning from one side of your body to the other and then swinging or slamming. Perseverance is something that someone has not just recently started doing but are still actively putting effort into it.
What is pivoting in entrepreneurship?
A: Pivoting is the act of changing strategies in order to gain a competitive advantage. When you pivot, your business changes direction without abandoning its original mission and vision.