When & How to Pivot A Business Model Draft

As an entrepreneur, it is easy to become attached to the business idea you had when you started your company. Through the start-up process, you pitched your idea to investors who bought into the concept that you had developed, and your company has been busy fulfilling its mission.

But what happens when progress stops? How does a company react when the initial plan fails and expectations aren’t met?

Unfortunately, many start-ups give up at this point. A few, however, have learned to pivot their company and go on to achieve success.



Loosely defined, many people have conflicting opinions about what constitutes a pivot of a business model and what constitutes a complete change of vision. The actions taken by a company may be described as a pivot by one analyst, only to be completely disregarded by another – it is all a matter of opinion. What is clear in a discussion that includes pivoting is that entrepreneurs who wish to succeed must keep an eye on the market and be prepared to make a change. The details of how that change will look in the company will vary based on the company and the industry, but the fact remains that in order to continue, the start-up must make changes.

The word ‘pivot’ has worked its way into everyday language, and has even made its debut as part of a spoof on television. However, a genuine pivot allows for a fresh perspective on the company and prevents the start-up from being stagnant and outdated. Understanding the basics of pivoting is crucial before making rash decisions or planning corporate strategy.



There are two main reasons that a company would benefit from a pivot of its business model: internal factors and external factors.



It is tempting to classify any change in direction that a company makes as a pivot. However, just jumping from one vision to another is not a pivot and will most likely end in disaster for the company. For example, a company that has been selling used cars and suddenly decides to open a produce stand has not executed a pivot – they’ve recreated their entire company. A pivot is simply a change in the avenue a company takes to reach its goal, and there are several types of pivots that can be done.


To be considered a successful pivot, the entrepreneur must ensure that the move solves a major problem within the company, allows the start-up to maintain relevance to the company’s identity, and that it is a result of listening to customers.



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Our wearable products are developed utilizing new IOT technology enabling connected health for active aging has broadened its impact in the senior healthcare space with remote monitoring technology to proactively identify emerging health issues.
Our turnkey solutions allow Managed Care Organizations to achieve the triple aim of better health outcomes, lower costs, and better experiences.
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