Change is an inevitable part of the business landscape. Regardless of industry, every organization encounters periods of upheaval that demand strategic realignment. Whether it’s driven by economic downturns, technological disruption, or unforeseen global events (like a pandemic), the ability to pivot effectively can often mean the difference between thriving and surviving.
As an entrepreneur and business strategist, I have witnessed firsthand how adaptability is one of the most valuable traits a leader can possess. Today, I want to share some practical ways to pivot your business strategy during challenging times while staying true to your vision and core values.
Reassess Your Core Strengths
When the ground starts shifting beneath your feet, it’s important to look inward. What are the core strengths of your business? What do you do better than anyone else? If you’re facing a challenging climate, these strengths can serve as a foundation for your next move.
Take the example of Airbnb during the COVID-19 pandemic. With travel on hold, their primary market was decimated. Instead of panicking, they leaned into their core strength: connecting people. They introduced “Online Experiences,” offering virtual activities hosted by local experts around the world. This pivot not only sustained their business but also opened a new revenue stream and deepened customer engagement.
Ask yourself: How can I leverage my company’s unique value proposition in ways that align with current market needs?
Listen to Your Customers
Tough times often bring about a shift in customer behavior and priorities. To pivot effectively, you need to be in tune with your audience. Pay attention to feedback, conduct surveys, and analyze purchasing trends. Understanding their evolving pain points is critical to crafting a strategy that resonates.
Nike offers a textbook example of customer-centric pivots. When the pandemic forced gym closures, they adapted by offering free online workout content through their app, keeping their customers engaged and their brand front-of-mind. This isn’t just about driving sales—it’s about meeting your customers where they are and creating value during times of uncertainty.
Remember: The more closely you align your pivot with customer needs, the smoother your transition will be.
Embrace the Power of Digital Transformation
If your business hasn’t fully embraced digital channels yet, challenging times offer the perfect opportunity to accelerate that shift. From digital marketing to e-commerce to online service delivery, moving operations online can open up new avenues for growth and survival.
For instance, the restaurant industry has seen countless examples of successful pivots through digital platforms. Many restaurants that faced closures turned to platforms like Uber Eats and DoorDash, while also developing their own apps for direct delivery. Similarly, boutique retailers leaning into platforms like Shopify or Etsy allowed them to retain customer engagement even when their brick-and-mortar locations faced restricted foot traffic.
Ask yourself: How can technology help me innovate, streamline, or expand my service offerings?
Reimagine Your Business Model
Sometimes, surviving tough times calls for a reimagination of your entire business model. Can you experiment with subscription services? Rentals? Strategic partnerships? The goal isn’t to abandon your core purpose, but to discover new pathways to deliver value.
Consider the example of Zoom, which surged to prominence as businesses and educational institutions moved meetings and classrooms online during the pandemic. By leaning into a freemium model and allowing free unlimited use for schools in particular, they not only capitalized on a sudden demand but built a loyal user base that would continue to use their paid services.
Flexibility and creativity in monetizing your offerings can help you weather the storm and expand new opportunities.
Cut Costs Without Cutting Corners
Challenging times often require some financial belt-tightening, but it’s crucial to preserve the essence of what makes your business special. Identify areas where you can cut costs without compromising quality or your long-term strategy.
For example, can you renegotiate vendor contracts, streamline operations, or focus on high-margin products/services? Many businesses have successfully downsized physical footprints or embraced hybrid workplace models to reduce overheads without sacrificing employee productivity or customer satisfaction.
Key tip: Approach cost-cutting as a strategic exercise rather than just slashing numbers. This approach ensures sustainability rather than short-term survival.
Communicate Transparently with Stakeholders
Pivots are rarely executed in isolation. Employees, partners, and even customers need to understand why changes are being made and what they can expect moving forward. Transparency builds trust, and trust is essential to navigating turbulent waters.
Take inspiration from Slack. Early on in the company’s lifespan, they pivoted from being a gaming company to becoming a workplace communication platform. By communicating clearly with their team and investors about the vision behind their pivot—and involving stakeholders in the process—they built a culture of buy-in and collaboration, which led to phenomenal success.
Your stakeholders want you to succeed, but they need to feel informed and involved.
Stay Focused on Long-Term Goals
During difficult times, it’s easy to succumb to short-term thinking. While agility is critical, don’t lose sight of your overarching vision. Every pivot should align with or support your ultimate goals, even if it requires taking detours along the way.
Consider Microsoft’s pivot to cloud computing under the leadership of Satya Nadella. While the shift required considerable investment and risk in the short term, it aligned perfectly with their long-term goal of becoming a leader in digital solutions. The result? A thriving business supported by recurring revenues and market dominance.
When you pivot, make sure it’s a step toward growth—not just a lateral move for survival.
Experiment and Learn
Lastly, give yourself permission to experiment. Not every pivot will be perfect right out of the gate, and that’s okay. The key is to test, measure, and refine until you find a strategy that works.
Take Starbucks, for example. They’ve experimented with everything from mobile ordering to drive-thru only stores, learning what works in different markets by iterating over time. Not every strategy is an instant success, but a consistent commitment to evolution has kept their brand relevant and thriving.
Set up systems to monitor KPIs (Key Performance Indicators), assess customer response, and gather insights. Pivots thrive on a mix of creativity and data-driven decision-making.
Ultimately, navigating challenging times isn’t about abandoning who you are as a business—it’s about discovering new ways to deliver value while staying true to your mission.
