The Art of Pivoting: Knowing When to Pivot and How to Stay True to Your Core Mission

Pivoting can be a tough decision, especially when you've poured time and resources into your original plan. For entrepreneurs, though, it can be the move that propels you to your next growth phase. The trick is knowing how to pivot without losing sight of your core mission and recognising when it's time to make that shift.

Business is unpredictable, especially in regions with unique challenges, being able to pivot is often crucial for survival and growth. Pivoting doesn't mean abandoning ship when things get tough; it's about adjusting your approach while keeping your ultimate goal in mind.

Take Paystack, a Nigerian fintech company that started as a payment gateway provider. When they launched in 2015, they aimed to simplify payments for businesses. Soon, they realised the real need was broader than just a simple gateway. Businesses were struggling with fragmented financial services and needed more comprehensive solutions. Paystack expanded its offerings to include a full suite of economic tools, from payment processing to invoicing and financial reporting. This shift allowed them to serve their clients better while sticking to their mission of empowering businesses through seamless financial services.

Identifying the Need to Pivot: Practical Steps

How do you know when it's time to pivot? The signs are often subtle but noticeable:

1. Monitor Your Growth Metrics: If your business growth has stalled despite your efforts, something needs to change. Regularly review key performance indicators (KPIs) like customer acquisition rates, revenue growth and market share. If these metrics are stagnating, it's time to reassess your strategy.

2. Engage with Customer Feedback: Listen to what your customers are saying. Set up feedback channels through surveys, interviews or casual conversations. Look for patterns in their responses—are they asking for features you don't offer? Are they struggling with problems your product doesn't solve? Use this feedback to guide potential pivots.

3. Stay Informed About Market Changes: Keep an eye on market trends and competitor movements. Read industry news, attend conferences and network with peers. If you notice competitors adapting faster to changes or if market conditions shift significantly, it may be time to pivot.

How to Pivot Without Losing Your Core Mission

Pivoting doesn't mean throwing away your mission. Here's how to keep your core purpose intact:

1. Revisit Your 'Why': Before making changes, reflect on your business's original purpose. Write down your core mission and values. Use this as a guide during the pivot process. For example, Konga, another Nigerian e-commerce company, started with the mission of providing easy access to products for Nigerians. When they added offline stores in 2019, they did so to better fulfil this mission by reaching customers who weren't online.

2. Incorporate Customer Feedback into Your Strategy: Set up a system for gathering and analysing customer feedback regularly. This could be through survey tools, social media monitoring or direct customer interviews. Make this feedback a key factor in your decision-making. If customers want faster delivery times, you might pivot to invest more in logistics.

3. Stay Flexible in Methods but Firm in Your Mission: Be open to changing how you achieve your goals. Create a roadmap outlining different strategies to reach your mission, and be ready to switch paths if one isn't working. Make sure every new strategy aligns with your core purpose. Andela, a company connecting African tech talent with global companies, pivoted in 2019 from training developers for outsourcing to building a global talent marketplace. Despite this change, their mission of unleashing Africa's tech potential remained central.

4. Test Before You Commit: Before fully committing to a pivot, run small-scale tests. Try launching a minimum viable product (MVP) to gauge market response. Use data from these tests to make informed decisions. If you're considering a subscription model pivot, start with a small customer segment to see how they respond.

5. Communicate the Pivot Clearly: Be transparent when pivoting. Create a communication plan explaining the reasons behind the pivot, how it aligns with the company's mission and what the new direction entails. This helps your team, stakeholders and customers understand and support the change. Use internal newsletters, meetings and external channels to keep everyone informed.

Avoiding Common Pitfalls

As you pivot, here are some practical steps to avoid common mistakes:

1. Avoid Overcommitting: It's easy to get caught up in the excitement of a new direction and promise too much. Start conservatively. Limit the scope of your new strategy and focus on delivering measurable results before scaling up.

2. Protect Your Core Revenue Streams: During a pivot, ensure that your core business continues to operate effectively. Create backup plans to manage any disruptions that might arise from the pivot. This might involve keeping separate teams or resources for the existing business while exploring a new direction.

3. Track and Measure Progress: Set clear, measurable goals for your pivot and track progress regularly. Use tools like OKRs (Objectives and Key Results) to ensure that your pivot is on track and aligns with your core mission. Regular reviews will help you make necessary adjustments along the way.

Pivoting isn't about changing your destination; it's about finding a better route to get there. It's about recognising when your current path isn't leading where you want to go and having the courage to chart a new course. By staying attuned to market signals, listening to your customers and remaining committed to your core mission, you can pivot effectively and keep your business on the path to success.