When Pivoting Becomes a Pitfall

Whatever your problem was, a pivot done badly has big potential for making it worse.

learn more about Clate Mask

By Clate Mask

AnSyvanych | Getty Images

Opinions expressed by Entrepreneur contributors are their own.

To survive, we entrepreneurs have to be flexible. We have to respond to customer feedback, competitor movement, changing market conditions, new opportunities and so much more.

That's why a lot of people talk about the need for the "pivot." This now-familiar term is centered on entrepreneurs recognizing the factors above and adjusting their business strategy to meet a shifting business landscape. When used correctly, pivoting keeps a business on course to navigate changing waters.

However, there can be drawbacks to pivoting and it has the potential to capsize a business if not done properly. Often it's best to stay the original course and weather the storm. The tendency to overreact is where entrepreneurs can get into trouble.

Related: 5 Reasons Why Pivots Are Crucial to Today's Businesses

Pivoting too hard, too fast.

Larger companies run the risk of becoming settled in their ways and not adjusting. Entrepreneurs, however, are all too happy to pivot and follow a shiny object.

Abrupt moves are only wise in an emergency. There are times when you have to pivot hard, but that's only when you're in a dire situation. I learned this lesson the hard way. At Infusionsoft we considered a change to our pricing model. We conducted some testing on what the effects would be, but in hindsight it was not nearly enough for such a major decision. Our eyes were wide open with excitement at the opportunity of what could happen if we made a shift. We were chasing the shiny object.

We pivoted hard and fast to move in this new direction and we nearly lost the company.

Related: 4 Tips for Successfully Pivoting Your Startup

Gradual change wins the day.

There are those occasions when an abrupt move is necessary. Usually though, gradual and incremental changes are the principle you want to follow.

So how do you gradually improve? You test. Business consultant Jim Collins describes this principle as "Bullets, then cannonballs." The idea is that you have to fire a lot of bullets -- test new products, services, processes, etc. -- to see what works and what doesn't. Only after an idea has been tested enough to be proven do you then fire a cannonball. Collins refers to hard pivots as firing uncalibrated cannonballs.

With this method, what looks like a 90-degree turn is actually 90 incremental one-degree turns. It is a series of small pivots that gradually gets you and your company headed in the right direction.

Moving your business in a different direction always involves risk. Too often though, entrepreneurs think that risk is this zero-sum, all-or-nothing game that we're playing to win. Successful entrepreneurs know the value of methodical and tested risks. They're playing a very calculated game of risk and they're stacking the deck in their favor to win.

Related: 3 Rules for Making a Successful Pivot

So yes, they're taking risk. They're moving. They're pivoting. But, they're usually not taking hard 90-degree turns.

If you're considering making a drastic change to your business, ask yourself first whether you're in an emergency situation. If not, use the time to fire some bullets before the cannonballs.

Clate Mask

Co-founder and CEO, Infusionsoft

Recognized as a visionary leader in the small-business community, Clate Mask has been educating and inspiring entrepreneurs for more than a decade. As CEO of Infusionsoft, Mask is leading the company on its mission to create and dominate the market of sales and marketing for small businesses.

Related Topics

Editor's Pick

The Dark Side of Pay Transparency — And What to Do If You Find Out You're Being Underpaid
Thinking of a Career Change? Here Are 4 Steps You Can Take to Get There.
A Founder Who Bootstrapped Her Jewelry Business With Just $1,000 Now Sees 7-Figure Revenue Because She Knew Something About Her Customers Nobody Else Did
Everything You Need to Know About Franchise Law
Growing a Business

Scaling Made Easy: How to Scale Your Business like a Fortune 500 Company

Once you have the night-vision skills of Fortune 500 restaurants, scaling becomes effortless. Here are 3 ways to scale, hidden in plain sight.

Business Ideas

55 Small Business Ideas To Start Right Now

To start one of these home-based businesses, you don't need a lot of funding -- just energy, passion and the drive to succeed.

Marketing

Streaming TV Is the Future of Advertising — Without Breaking the Bank

Today's consumers expect personal, impactful ads. There's an advertising method that can get you there for half the price, making it the next frontier in digital advertising.