You're at a crossroads with your business strategy. How do you choose between pivoting or expanding?

Assess Current Business Performance 1. Analyze Key Metrics: Review key performance indicators (KPIs) such as revenue growth, profit margins, customer acquisition costs, and market share. Determine whether your current strategy is delivering the expected results. 2. Customer Feedback: Gather feedback from customers to understand their satisfaction levels, unmet needs, and overall perception of your product or service. This can highlight areas where your current strategy may be lacking. 3. Operational Efficiency: Evaluate the efficiency of your operations, including supply chain, production, and delivery. Identify any bottlenecks or inefficiencies that may be limiting your growth.

Choosing between pivoting or expanding requires a thorough evaluation of internal and external factors. Assess market trends, customer needs, competitive landscape, and your company's core competencies. Analyze the potential risks and rewards of each option, considering financial implications, resource allocation, and timeframes. Involve key stakeholders in the decision-making process to gain diverse perspectives. Ultimately, the best path forward depends on your business's long-term goals and ability to adapt to changing market conditions.

1. Industry Trends: Conduct a thorough analysis of industry trends to understand where the market is heading. Identify emerging opportunities and threats that could influence your decision to pivot or expand. 2. Competitive Landscape: Assess your competition. Are competitors innovating in ways that threaten your market position? Are there gaps in the market that you could exploit by either pivoting or expanding? 3. Market Demand: Determine whether there is a growing or untapped demand for your current offerings. If demand is declining, a pivot might be necessary. If demand is growing, expansion could be the right choice.

1. Pivoting: Consider pivoting if your current business model is not sustainable, if the market has shifted, or if new opportunities have emerged that better align with your core competencies. A pivot could involve changing your product, target market, or business model. 2. Expanding: Consider expansion if your current strategy is successful and you see opportunities to grow your market share, enter new markets, or diversify your product line. Expansion could involve scaling operations, entering new geographic markets, or launching new products.

1. Financial Resources: Assess your financial position to determine if you have the resources to invest in a pivot or expansion. Consider the costs, potential returns, and financial risks associated with each option. 2. Capabilities and Talent: Evaluate whether your current team has the skills and expertise needed to execute a pivot or expansion. You may need to hire new talent or invest in training. 3. Technology and Infrastructure: Ensure that your technology, systems, and infrastructure can support the chosen strategy. A pivot may require new tools or platforms, while expansion might necessitate scaling existing systems.

1. Identify Risks: Identify the risks associated with both pivoting and expanding. Consider factors such as market uncertainty, execution challenges, financial exposure, and potential disruption to your business. 2. Risk Mitigation: Develop strategies to mitigate these risks. For example, you might start with a small-scale pilot before fully committing to a pivot or expansion.

To create a strategic fit it is important to ensure that all business activities are in line with the company's core values, goals, and purpose. It is also essential to focus on developing unique capabilities or resources that differentiate the company from competitors and provide a competitive advantage. This may include investing in R&D, establishing strong relationships with suppliers or partners, and utilizing technology to enhance efficiency and customer experience. In addition, you must continuously monitor the market and competitive landscape to identify opportunities for growth and adaptation. Agility and responsiveness are key to position a company as a market leader and maintain a competitive edge.

Tanto pivotar la estrategia como expandir en mi experiencia es el cliente quien lo marca en muchas ocasiones. -Si decides pivotar es porque tu propuesta de valor no esta alineada con la de tu cliente objetivo por tanto debería validar tu propuesta y pivotar poco a poco. -Si decides expandir es porque tu propuesta de valor va en la línea del cliente y por tanto decides escalar el negocio, mi recomendación aquí es que tengas cuidado y no pierdas la atención al cliente.