Entrepreneurship is a journey defined by constant change, adaptation, and growth. Central to this journey is a vision – a purpose that guides every decision, investment, and strategy. However, there comes a time when many entrepreneurs hit a plateau.
Growth slows, innovation wanes, and the excitement that once fueled the business begins to fade. In these moments, the most successful entrepreneurs take a step back to evaluate whether they’re still on the right path. It isn’t about abandoning your purpose or core mission. It’s about ensuring that the path you’re on is still the most effective one to achieve your goals.
Recognizing the plateau.
The first step in considering a pivot is recognizing when you’ve actually hit a plateau. It can manifest in various ways: stagnating sales, lack of innovation, declining customer engagement, or simply a sense of inertia within the company. These are clear indicators that your business may no longer be aligned with dynamic market conditions or evolving customer needs.
Acknowledging the following signs early on is crucial, as they signal that it’s time to reassess your strategic direction.
- Stagnating sales and revenue. If your revenue has plateaued despite various marketing and sales efforts to drive growth, it might indicate that your current market or product offerings have reached their full potential.
- Lack of innovation. When your team is no longer inspired to innovate or new ideas seem to dry up, it’s a sign that your current path may no longer offer the creative stimulation necessary for growth.
- Customer engagement decline. A noticeable decline in customer engagement or satisfaction can signal that your products or services are no longer meeting market demands.
- Internal frustration. If you or your team feel stuck, uninspired, or frustrated, it may be time to examine whether the current trajectory still aligns with your broader purpose.
Reflect on your core mission.
Before making any drastic changes, it’s essential to revisit your core mission. What was the original purpose of your business? Why did you start this journey? Reflecting on these questions can help you determine whether your mission still holds true or if it needs refinement.
This reflection is not about abandoning your mission but about realigning your strategic approach to better serve it. This process was particularly significant in my own entrepreneurial journey. Throughout the 10 to 15 years before the pandemic, the nature of my family business began to shift. As market dynamics changed, the business, though successful, no longer aligned with my core purpose.
After much deliberation, I made the difficult decision to sell the main business to someone whose core purpose was more aligned with where the market was heading.
I chose to double down and grow a smaller business that was closely aligned with my true core purpose. This pivot allowed me to focus on what I was genuinely passionate about and to build a business that could thrive by staying true to that mission.
The power of ‘you are no longer right.’
My friend, successful entrepreneur, and EO Cape Town member Rich Mulholland introduced me to an exercise he does with his team that allows them to say, “You are no longer right.” This simple yet powerful phrase acknowledges that the strategies or assumptions that once drove success may no longer be applicable in a changing environment. It’s an exercise in humility and adaptability. It’s about recognizing that what worked yesterday might not work today or tomorrow.
To implement this in your business, encourage open dialogue within your team. Create a culture that welcomes them to challenge the status quo. This approach fosters a mindset of continuous improvement and innovation, ensuring that your business remains agile and responsive to change.
Evaluate new opportunities and market shifts.
One key reason to consider a pivot is the emergence of new opportunities or significant shifts in the market. Markets are not static; they evolve with technological advancements, changes in consumer behavior, and economic shifts.
As an entrepreneur, staying attuned to these changes is critical:
- Technological advancements. Technology evolves rapidly; what was cutting-edge a few years ago may now be obsolete. Evaluate whether new technologies could enhance your offerings or streamline operations.
- Changing consumer behaviors. Consumer preferences are constantly changing. What customers valued a decade ago might not be what they value today.
- Economic shifts. Economic conditions can drastically impact business strategies. For example, a recession might necessitate a pivot toward more cost-effective solutions.
When assessing these opportunities, consider how they align with your core mission and long-term goals. A pivot shouldn’t be a knee-jerk reaction but rather a strategic decision that enhances your ability to fulfill your purpose.
Push through the plateau and pivot your purpose.
In today’s rapidly evolving business landscape, the ability to pivot and adapt is more important than ever. You need to be more comfortable with the idea that change is constant. However, it’s equally important to recognize that a pivot is not a sign of failure but a strategic response to change.
By staying true to your core mission while remaining flexible in your approach, you can navigate the challenges of entrepreneurship with confidence and resilience. As you evaluate whether it’s time to pivot your purpose, remember: The ultimate goal is not just to stay in business but to thrive in a way that aligns with your vision and values.