Why the word PIVOT is not helping us

Pivot has become the buzz word for businesses at the moment, similar to the word ‘Biz’ a while back, and whilst I've never liked the word ‘Biz’ it made running a business fashionable, which made it more approachable. That in turn lowered the mental barrier for individuals starting a business, which was a really good thing, but it brought some attitudes that don’t serve us well in today’s challenges. I believe the word Pivot has highlighted that.

Previously, it was thought to start a business we needed all sorts of resources; money, assets, intelligence, etc. We don’t, well maybe a little money to tide us over, but generally we just need imagination, willpower and patience. That said, in some industries like accountancy and law, we need qualifications, and for others like web and app development we need specific skills, but for most other businesses creativity and respect for our customers alone will get us far.

However, sadly engaging our creative side and putting the customer first are usually afterthoughts for many businesses; only utilised when sales are less easy to come by. This is why the word pivot is wrong (in my opinion) because it highlights an attitude running throughout many in businesses today which sadly doesn’t serve them well.

Pivot means to spin around; go another way, and whilst the current challenges are asking business to rethink how we do business, it is NOT asking us to spin around.

It is asking us to do what businesses at their very core should do - respond to the market and environment it finds itself in. It is asking us to be creative, serve the customer, give them what they need (NOT what we need*) and embrace technology. It is asking us to remember why we started our business; what was the vision? What was the goal?

If we approach our current challenges with the word pivot in mind, it can have us thinking we got it wrong, we’re in the wrong business. We need to turnaround and go the other way. Before we know it, we're sitting thinking of either going back to employment, or looking around to see what else is easier to do. Whilst neither of those strategies are necessarily a bad thing, they have a sense of looking for the easy way out.

Don’t get me wrong, I love simplicity and I too would be very happy with an easy life.

However, if we really do desire an easy life, we'll not find it in running a business... Yes it’s easy to start a business in most industries, but it has never been easy to get sales despite what some of the marketing people tell us. Equally, grants are getting harder to get hold of (due to government funding and budget timing, in addition to the odd few on a first come, first serve basis), plus investment (either loans or a private investor) is not for the fainthearted either!

Sometimes we get lucky, but a conversation with a friend and business owner last week reminded me that it’s not about luck. It’s about hard work. It’s about putting in the effort and constantly being on the look-out for opportunities.

Equally, I was laughing with another business owner yesterday about how most of us start a business believing we’re going to get sales within the week, even I did. Sadly I was not alone in my thinking. Yet that’s not to say we won’t get a sale or client fairly quickly, but generally it can take between 6-12 months to get our first real break, maybe even longer as we build up our reputation and trust factor. For example, I first spoke with the business owner back in 2017 i.e. it took four years for her to become a paying client...

Coming back to pivot…

If you are a business owner who wants to turn around when it gets challenging, you’ll start to get the reputation of jumping ship. Some customers may admire your creative streak if you have been around for while doing lots of different things, yet at the back of their minds there is a high risk of “but how long will they be offering this service or product and can I really trust them to stick around to deliver or service it?”

I’m NOT saying don’t look around, and I’m NOT saying don’t look for easier solutions. I whole heartedly recommend both of those. What I am saying is don’t jump ship, not if you really believe in what your business was created to do. No matter what business you choose to be in, there will always be challenges.

You could change how that service or product is delivered if you need to based on market conditions (i.e. especially in light of the recent lockdowns and social distancing). Don’t run away from the problems you’re faced with right now. I admit it’s really tough at the moment for a lot of businesses, but if you can be creative and breakthrough the challenges, you will earn the respect of many more customers to come, along with your peers. You may even inspire other business owners.

I was also encouraged last night to hear Tony Robbins, who has been in business 44 years, admit his frustration when all his events last year got cancelled. He was angry, then for a moment disheartened by it all, but soon got creative and found a way to continue delivering what he believes in. I highly recommend you do the same.

If you need help with establishing your financial footing and building resilience please get in touch, otherwise good luck, ride the waves and may the force be with you ;-)

* our most basic needs aside.

Helen Monaghan

Chartered Management Accountant, BSc (Hons) Psych, BAcc

Building Financial Resilience in Businesses and Individuals

Tel. 0131 210 0317

? HM Finance Coaching Ltd ? Images from Stock Unlimited 

ABOUT THE AUTHOR

Helen Monaghan is a Chartered Management Accountant, accredited NLP Practitioner & Finance Coach. Both a psychology graduate and an accountancy graduate, she has authored three business books, which beautifully bring together psychology, finance, and tax to empower the reader about money. Helen is also the founder of HM Finance Coaching Ltd, a company that provides financial education and business mindset coaching to small businesses across the UK, in addition to accountancy services for limited companies in Scotland.