TFT: Knowing When to Pivot

What Got You Here Won’t Get You There

Apr 03, 2025

Many founders get stuck doing what worked in the past, but scaling often requires a shift in strategy. You built a great thing. You have grown it to heights you never thought you would make it to. Just like going professional in a sport. As you climb and grow and get to higher levels you have to adjust your approach. Sometimes that approach shift is a pivot to a new strategy. Sometimes you need to move from the start player to the 6th man. Sometimes you need to go the other way. No matter what a pivot is a challenge and one you will face as you grow your business. This post will look at when it is time to pivot and how to make data-driven decisions about change.

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The market will change

As the saying goes, “The only constant is change.” So you are living in a great market together, that will change. Sure the market has been good to you and you to it, but it will shift. AI will change something, the government will change something, the generation in the work force will change something. No matter what change will come so you have to be ready for that. Think through some scenarios:

What if our revenue goes to zero?
What if our product is banned?
What if the customers want something different?
What if a competitor comes in at half the price?

These are the kind of questions you want to think about roughly once a quarter. Asking yourself these questions will ensure that you are ready when a change does come to the market.

Reconsider how you do things today

Many businesses get past by the market because they get comfortable. What they are doing is working so why would you need to change? You have loyal customers so they will let you know if something needs to change. The problem if sometimes customers do not know they want a change until there is one on the market. So you need to be a part of that change. You need to be challenging what you are doing today. By challenging yourself you make sure the revenue stays in house. Consider any time to speak (or think) the phrase: “That’s the way we’ve always done it”:

Means you don’t know why.
1. If you knew why you would just say so.
If a customer is asking you, you should probably review and change something.
1. While they may not be asking for a change today, the fact that they are asking means the question is on their mind.

You want to be the one that disrupts yourself because then you keep the revenue. If you wait for the market to disrupt you then you will have to claw back the revenue and that is a longer and a harder fight.

Your Pivot will come

Some of you are reading this and thinking, “Great ideas folks, but not me, I’m the category leader”. Thanks

Category Pirates

for that idea of category leader. Ok that is true today, and Blockbuster thought the same thing when they turned down Netflix. So do not be the blockbuster of your category. Challenge yourself and find the way the category will change. A couple of things to consider:

Nividia, everyone’s darling, shifted from graphics cards to AI chips.
How will you know when to pivot?
1. What is the market telling you?
2. What questions are the customers asking you?
What relationships do you need to build to know when and how to pivot?
1. Who has been there and done that before?
2. Who won the last pivot?
3. Who lost it?

Knowing that your pivot will come is huge because it is the first step. If you think the pivot will never come you will not prepare. If you do not prepare you will become the next Blockbuster. So start today.

Action Step

Are you ready for the pivot already? Do you already review potential pivots in your business? Are you ready for a new challenge?

Set aside 30 minutes this week.

What products do you need to prepare a pivot for this week?

What products do you need to develop for a pivot this year?

Outline a plan for a product pivot or a new product this week.

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