4 Factors to Evaluate Whether It’s Time to Pivot to Close

Mili Kataria

Head Branding & Marketing – Hesa | Founder @ Pandora’s Box | Mentor – I help Startups understand and explore their Core & translate it into their Growth Story | Passion that drives me – #Impact1founderAday

We always hear this phrase, “Go Big or Go Home.” where going Big is the only choice that points towards victory.

But from a business standpoint, both decisions are equally wise and fruitful.

That’s what we have observed working as a brand marketing agency over the years.

Some businesses might be in a spot where they have caught the market’s pulse and turned it in their favor by tapping into all the favorable changes.

A DVD rental-by-mail service, Netflix, saw a shift in how consumers consume content online and found a gap to target.

They changed their positioning from being a “Content Distributor” to a “Content Creator” by making in-house series like The Stranger Things.

More so, they stepped up their game by bringing AI to let viewers see what they love and gain a sense of loyalty towards Netflix.

But at times, merging might also give you a position or bring you the strength you couldn’t achieve alone.

Vodafone and Idea joined hands to create Vi.

They won a stronghold in India’s highly competitive telecom sector through a large pool of customers and talents.

Sounds interesting.

In this blog, we will share how you our brand marketing agency evaluates whether it’s time to pivot or close for a business.

How do you decide whether it’s Time to Pivot or Close?

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  1. Market Demand

It wouldn’t be an exaggeration to say that Market Demand is your business’s lifeblood.

If you don’t have one, no matter how fine your product is, how big your budget is, or how captivating your promise is, you won’t see the upward lines in your sales graph.

Hence, you always have to be aware of the changes in your landscape and tap the ones that will attract growth.

Here are the various elements to look into to ensure if your product/ service has a demand to leverage –

  • Competition

1) Is there a sustained demand for your product or service now and in the future?

You can get clarity for this by going through your sales data, industry reports, and customer inquiries.

2) Is there an opportunity to strike a unique differentiation and gain growth through brand marketing?

Is there a gap in the market you can serve, or is it oversaturated now?

  • Customer Feedback

1) Is there a shift in what the customers want, and does your offering only target their current needs?

2) Are people moving towards any alternatives?

To what extent does the option take care of their needs?

  • Sales Pattern

1) Does your product/ service have seasonal and cyclical patterns that affect their demand and your brand marketing efforts?

2) Will any potential economic shifts impact the customer’s buying and spending patterns?

What are they?

  • Partnership Plans

1) Is there any opportunity to expand or diversify your product line? Maybe a possible partnership?

  1. Financial Viability

The insight we gain from Market Demand is that we should consistently observe our target market, notice the changes, and adapt your brand marketing strategy to fit the relevant ones to get to the top.

But doing the above would be possible only when you have one thing at your disposal.

That’s the Finances.

Here are the various ways in which you can ensure that your business has the essential resources –

  • Financial Modeling

1) Do you have a steady cash flow to back you during challenging times? Do you have enough working capital to support your day-to-day tasks?

2) Have you seen any changes in the revenue stream over a period of time? Is it constant, growing upwards, or going downwards?

3) Will I require any necessary funds or investments if I decide to pivot?

  • Business Model Canvas

1) What is the ROI of your plans to expand the market and customer segments? Is it financially feasible or not?

2) Do you have a profit margin? It highlights the efficiency of your operations.

Tip: You can break down the cost structure to find areas to optimize your operations further and save more.

  • Pricing Strategy/ Revenue Model

1) Do your prices align with the market benchmarks while ensuring you earn some profits?

  1. Strategic Alignment

Well, even if there is a market demand and you have the capital to back a change/ or a plan, you shouldn’t go forward with it if it doesn’t align strategically with your business and brand marketing.

Here’s how you can find if a plan aligns back to your brand’s core values and goals –

  • How much does your mission and vision align with you and then with your customers?

“Don’t just think about what your customers want. Think about who you are and what you can give to your customer, that in turn aligns back to what they are looking for.”

  • Do you have strategies focused towards fulfilling your mission or vision?

If not, a pivot may be the choice for you.

  • Do your strategies align with the industry trends, newest technologies, and social, sustainability, and regulatory requirements?
  • Can you adjust your value proposition, brand positioning, and brand marketing strategies to help your brand gain more market relevancy?
  • Do your partnerships and expansion plans work in coordination with your goals?

If not, you might need to reconsider your decision.

  1. Stakeholder Impact –

You are now starting to gain clarity on whether to pivot or close, which one might be the best option for you after a lot of internal and external analysis.

The next crucial thought you should have is, that we as a brand marketing agency ask our clients, 

“What will be the impact of my choice on my stakeholders?”

When I say stakeholders, I’m talking about all the people who work with/ or are associated with your business ecosystem – Customers, investors, suppliers, partners, sponsors, or employees.

You have to answer these questions to know the short and long-term impact on them –

1) Which option is going to earn them more profits and growth?

2) What will happen to your business relationship with them after your choice?

3) How will you communicate your decision and its pros with them?

4) Have you given them a clear picture of the future you are envisioning? 

Are they convinced about your plan?

5) How will you engage with them throughout the change process?

6) How can they contribute/ help you reach your goal?

That’s all about the factors to evaluate while deciding whether it’s time to pivot or close for your business.

POV: No decision you take is a 100% full proof decision, it comes with its own pitfalls & hero days. However, one activity is clear at this juncture, you, as an organization, will have to take some action.

If you need help in evaluating whether it’s time to pivot or close for your business, then you can schedule a FREE 20-minute consultation call with us.

Pandora’s Box is a brand marketing agency that enables firms to establish a strong, differentiating, and consistent online presence through our expertise in SEO, Social Media, and Content.

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