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Karan Gupta and Armaan Mehta, co-founders of Odore | Image credit: Odore

The ‘pivot’ has become synonymous with the pandemic. And, thanks to the countless times that strategy switch-ups have salvaged companies over the past year, pivoting has also gained the reputation of being a last ditch attempt to save a failing business. 

But Starbucks Coffee (who started out selling espresso makers and coffee beans) and Android (who first launched as a storage platform) are both examples of companies that identified opportunities elsewhere and became hugely successful as a result of a proactive pivot. Without a crisis in sight, their ability to adapt took them from unknowns to household names. 

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For startups, for whom new challenges and opportunities come up frequently, changing course should be seen as an exciting and potentially fruitful part of growth. Here’s how founders can explore a pivot in order to set their startup up for Starbucks-style success. 

Don’t be boxed into the market you launched in 

Question who else your product or service might be relevant to, and whether you can expand into new markets. Like Starbucks, you might start out as a supplier and move on to offer your wares directly to consumers. You might even identify a lucrative emerging market which a simple pivot would make you well placed to serve. The advent of Instagram Shopping is a prime example of this. Before you jump ship, make sure you dedicate time to get to know any new market segment in detail to ensure it’s the right pivot or expansion for your business.

Don’t let your emotions override your instinct 

Founders often attach huge emotional weight to their original business plan. Having been there since the beginning, original branding, products or clients can all hold huge sentimental value. But in order to grow, you may need to let these things go. For example, messaging which once held true may now come across as outdated, or a product strategy may not be keeping up with consumer preferences. Before these aspects of the business lose relevance – and eventually lose you customers – you’ll need to proactively consider the ways in which you can let go of legacy and embrace a pivot instead. Just remember not to take it personally. 

Listen to stakeholders

When your nose is so close to the grindstone, you can lack foresight on what’s coming over the hill. Investors, board members and stakeholders can bring new and fresh perspectives. Listen to them. Not only do they hold all-important funding, backing and contacts you’ll need to expand, but they also come with valuable experience. This gives them the foresight to recognise potential pitfalls of your existing strategy, and the insight needed to identify opportunities elsewhere. As long as you’re not compromising on core values and you’re upfront about what’s not up for discussion, it’s always worth taking heed of external advice. 

Keep up with new tech and trends

New technologies are developing all the time. Utilise them. Tech trends develop in line with consumers’ ever-evolving needs and behaviours, and failing to adapt alongside them could result in your own customers being enticed away by more up-to-date market entrants. For example, you might move from a hardware based offering to a software product in anticipation of declining hardware sales, rather than in response to them. If you think the market is heading in a certain direction, jump before you are pushed. You’ll learn to swim in the new waters of the evolving market much more quickly as a result. 

It doesn’t have to be drastic

In times of crisis, you may well need to make a 180-degree pivot. But pivoting to thrive is all about staying ahead of the curve; making smaller changes more often to pursue opportunities rather than to avoid ruin. Iterating proactively will also enable you to preserve or adapt the structures that you’ve worked so hard to build up to this point, rather than be forced to abandon key parts of your offering when backed into a corner. A staggered, mindful pivot can be an excellent way to stay relevant without the need for drastic action.