2017-02-08 00:00:00Running a BusinessEnglishDiscover what the term "pivot" really means in a business context, and see if it is something your small business should do.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/startup-CEO-explains-business-model-pivot.jpghttps://quickbooks.intuit.com/ca/resources/business/pivot/What is Pivot?

What is Pivot?

1 min read

The term pivot means to change direction and pursue new business goals while leveraging all previous learning. Many parts of a business can undergo a pivot, not just the product itself. Substantial changes can be made to eight other following business areas: operations, the revenue model, resources, business channels, customers, the customer acquisition strategy, costs, and partners.While pivoting may lead to big and new opportunities, it must be recognized that a large amount of time and effort will be abandoned. However, if the business is having a difficult time generating and/or sustaining revenue, the pivot may be the only survival option. As a fictitious example of a pivot, imagine a company that sells financial educational material focusing on individuals in their 20s as customers. It may find that sales are extremely small with this age group, but by adjusting the product and selling to people in their 50s, sales boom. The company decides to make the change, and business thrives. The larger pivot in target customers and smaller tweaks to the product itself allow the business to survive and grow. As a real world, multi-billion dollar pivot example, take YouTube. The site initially started as a dating site but shortly after, the founders realized the video upload component was the most popular. It pivoted to what you see in 2017 and completely dropped the dating component.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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