Everybody Pivots

This is from the Daily Entrepreneur Newsletter.

Research suggests that 93% of successful companies “had to abandon their original strategy – because the original plan proved not to be viable.” 

That was the case for Ben & Jerry’s which pivoted from a retail shop to B2B to B2C pints.

That was the case for Chobani, which pivoted from feta cheese to Greek yogurt.  

That was the case for LEGO, which pivoted from buildings to furnishings to toys. 

But how do you know when to pivot and where? 

Harvard professor Clayton Christensen wrote, “when the winning strategy is not yet clear in the initial stages of a new business, good money from investors needs to be patient for growth but impatient for profit.” 

That is, if growth is slow, profit is essential. 

But if growth is fast, profits can wait. 

If both are slow, pivot! 

It’s messy out there. There are no hard and fast rules. There is no one-size fits all solution. 

But it helps to know. Businesses change. Profits and growth are contextual.

The Daily Entrepreneur newsletter delivers brief meditations on the principles & practices of the world’s greatest business builders. This newsletter will always remain free and dedicated to helping you get a little better each day.

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