Latest news with #pivot
Forbes
6 days ago
- Business
- Forbes
4 Steps Of Pivoting In The Age Of AI
The ability to pivot effectively has become less of an occasional necessity and more of a core leadership competency. Especially as artificial intelligence reshapes entire industries at breakneck speed, start-up leaders are discovering that successful pivots require a unique blend of analytical rigor, emotional intelligence, and strategic courage. My conversations with four leaders—each navigating their own transformational journey—a clear framework emerges for how to orchestrate meaningful change without losing your organizational soul. When Rujul Zaparde, co-founder of procurement platform Zip, saw the emergence of ChatGPT, he didn't rush to slap AI onto existing features. Instead, he took his team back to fundamentals. "We really took a first principles approach to the company and the product to sort of say, okay, how do we, like, if we were to solve this problem, like, you know, the problem we solve for, like, what's the best way to solve it today?" This methodical approach proved transformative. Rather than viewing AI as a trendy add-on—which generally doesn't solve any real problem—Zaparde's team recognized they were uniquely positioned as an "orchestration layer" with access to supplier data, contract information, and financial systems that individual point solutions couldn't match. Their AI capabilities have since been used over four and a half million times. The lesson? Before pivoting, strip away assumptions and return to core problems. 1. What are your customers struggling with? 2. How intense is this problem? 3. How often do they experience this problem? 4. What's left short with your current approach? 5. How might your leverage any accumulated strengths and capabilities to develop a new approach? That requires writing, which brings us to step number two. Perhaps nowhere is the complexity of organizational pivots more apparent than at Chef, the marketplace connecting local cooks with neighbors. CEO Joey Grassia discovered that even when data clearly indicated the need for change, execution required something more nuanced than compelling metrics. "It really did take us 12 to 18 months to change the culture of the company so that people were willing to question what we've always done and willing to acknowledge that we may have to burn the boats on our old business to make the leap into the new one," Grassia reflects. The breakthrough came when Grassia crystallized the company's direction in a comprehensive memo outlining three specific milestones around growth, efficiency, and scale. "It wasn't until I wrote that memo and it was like, these are the three milestones of building a great business. Our existing business has no chance of accomplishing these things, so we have to disrupt ourselves. That was really the turning point." The transformation was dramatic. Writing a memo is one of the best ways to fast-track clarity. Since the pivot, Chef moved from standalone orders to standardized subscriptions, reducing customer cognitive load from 25 minutes per order to under 75 seconds for subsequent weeks. Forty percent of existing users opted into the new recurring model without any marketing push, and user spend tripled. Grassia found that successful pivots require what he calls "the wisdom to know that you need to do it and the courage to actually take the leap." But between wisdom and courage lies the critical work of building organizational conviction through clear, logical communication. While data and strategy provide the rational foundation for pivots, Charlie Greene, founder of memory-preservation platform Remento and recent Shark Tank winner, demonstrates why the most successful transformations also require deep emotional intelligence. Greene learned this lesson through experience: "Pivots are incredibly easy to talk about in retrospect, they're incredibly difficult to navigate as they're unfolding. Because you never wake up one day and realize that today is the day you're going to pivot." For Remento, the pivot from a conversation-structuring tool to a book-creation platform wasn't just about product features—it required reimagining their entire value proposition. The original product had high download rates but low usage. "While we had built a product that aligned perfectly with what users told us they wanted, we quickly learned that our solution didn't remove nearly enough of the friction needed to spur adoption." Greene's approach to managing this uncertainty offers a lesson in communication. "One of our values is clear as kind," he explains. "Being able to say to your team, look, here's where we are right now. Does anyone disagree with where we are right now? You know, like, okay, we can agree this is where we are right now. Can we all agree where we need to be in three months?" Greene emphasizes bringing teams into the decision process while maintaining ultimate accountability—a delicate balance between vulnerability and authority. In the next decade, AI will likely disrupt every company and every industry. If you're not examining how true that's likely to be for your business, you'll get swallowed by a competitor. Bryan Power, Head of People at Nextdoor, shared just how urgent this transformation is. Having navigated multiple organizational turnarounds, Power sees AI as fundamentally different from previous technological shifts. "One of the major disruptions that AI is doing is certain activities now the turnaround is so fast that managers have a mental model of how long something takes in their head because they did it when they were a contributor. But this is now something that takes minutes that used to take days." This speed transformation creates unprecedented management challenges. As Power explains, "What happens to those five days has not really been worked through because as an employee I'm like, you're paying me to do this thing. It doesn't matter. Fifteen minutes, five days. I did what you told me to do." Power's response at Nextdoor has been characteristically direct: comprehensive AI training programs and a cultural mandate that everyone must engage with these tools. "I can actually tell if someone's been using AI for a month or three months or for six months," he notes. "I can see the learning moves that people make in the early going, and by extension I can see when they haven't made them yet." The broader implication is sobering: "I saw people not embrace the Internet. And like, think about that point of view today is just mind boggling to me. But in my time, in my career, my early 20s, I saw the people that embraced it and it just completely made the first five to 10 years of their career because they were out front." Four key insights emerge from these leaders' experiences: Start with your problem. Before implementing any change, return to fundamental questions about the problems you're solving and whether current approaches can scale to meet future demands. Build internal logic through clear communication. Successful pivots require more than good ideas—they need comprehensive strategies with measurable milestones that help teams understand not just what's changing, but why change is inevitable. Balance data with emotional intelligence. While metrics provide direction, the human element of change management—creating psychological safety, maintaining transparency, and holding space for uncertainty—often determines execution success. Move quickly. Rather than viewing artificial intelligence as an optional enhancement, treat it as a fundamental shift that requires organizational learning and adaptation at every level. Finally, the leaders profiled here share one crucial characteristic: they didn't wait for perfect information before acting. Instead, they developed frameworks for making decisions under uncertainty while building organizational capabilities to execute those decisions effectively. In an era where the pace of change continues to accelerate, the question isn't whether your organization will need to pivot—it's whether you're building the cultural and strategic capabilities to do so successfully. The most successful pivots combine analytical rigor with human wisdom, creating organizations that don't just survive change but thrive because of it.
Entrepreneur
6 days ago
- Business
- Entrepreneur
How to Turn Setbacks Into Strategic Advantages
Here's how setbacks — whether it's a product flop, a missed market or internal friction — can become the turning points that drive lasting growth. Opinions expressed by Entrepreneur contributors are their own. In the unpredictable world of entrepreneurship, the ability to pivot is not just a survival mechanism; it's often the defining trait that separates long-term success from failure. Over the years, I've co-founded and operated companies across proptech, fintech, insurance and media. Some succeeded, some failed. But the ones that made it through did so because we knew when and how to pivot. The startup world romanticizes the grind — the late nights, the pitch decks, the moments of inspiration that become unicorns. But the reality is far messier. It's the misaligned products, misunderstood markets and management conflicts that really test your mettle. These moments don't signal the end; they're the inflection points that force you to evaluate what's working, what's not and what might be possible with a different lens. Related: 3 Steps to Take to Successfully Pivot Your Company and Skyrocket Revenue Recognizing the pivot point A good pivot doesn't come from panic — it comes from insight. One of the most critical lessons I've learned is that your original idea might not be wrong, but your market timing, audience or delivery might be. The art lies in seeing where the value really lives and having the courage to move toward it. When we transitioned one of our early ventures from a real estate lead generation business into a dynamic social platform for real estate professionals, it wasn't because the original concept had no merit. It was because the landscape had shifted. Agents didn't just need leads; they needed community, tools, validation and collaboration. And if we hadn't moved fast enough, someone else would have. Setbacks aren't failures — they're feedback Think of failed features, products or campaigns not as wasted effort, but as data points. They teach you what your customers don't want, which is just as valuable as what they do want. Some of the best companies have emerged from well-documented failures: Slack started as a failed gaming company called Tiny Speck. When the game didn't take off, the team realized the internal communication tool they had built was more promising. Instagram was originally Burbn, a bloated location check-in app with way too many features. Its pivot into a photo-sharing platform with filters came from stripping away the noise. Shopify began as an online snowboard store. The founders grew frustrated with the lack of ecommerce tools, so they built their own — and then realized that was the real opportunity. Each of these companies listened carefully to what the market was telling them, even if it wasn't what they wanted to hear at the time. Related: Is It Time to Pivot Your Business? 3 Clear Signs You Shouldn't Ignore Courage over ego One of the hardest things for a founder to do is admit that their "baby" isn't working. It takes courage to step back and ask: Is this idea worth fighting for, or is there something better within reach? Letting go of a failed strategy doesn't mean you're abandoning your mission. It means you're respecting it enough to find the right path forward. Often, pivots aren't 180-degree turns; they're 20- to 30-degree adjustments that reframe your positioning, your user experience or your revenue model. But those slight shifts can change everything. Make data your compass A pivot should be guided by evidence, not emotion. Customer behavior, user engagement metrics, churn rates and direct feedback are your GPS. If no one's clicking your core feature but they're all obsessed with a secondary tool you built as a bonus, that's a clue. If your churn is high despite marketing spend, maybe the product isn't delivering value. If your sales cycles are too long, maybe you're targeting the wrong buyer. You won't always have perfect data, but you'll have enough to make an informed bet. And in early-stage ventures, every decision is a bet — you just want to make the smartest one possible. Team alignment is critical A pivot doesn't just change the business — it changes the psychology of the team. You need buy-in. You need shared belief. Communicate the "why" behind the pivot as clearly as the "what." If you're asking people to change direction, you owe them clarity and context. Some of the most painful business lessons I've learned came from not aligning leadership or investor expectations before making a major shift. Transparency early prevents friction later. Related: Why Founders Should Always View Pivots as Opportunities From setback to strategic advantage Here's the truth: In almost every story of business success, there's a moment of pivot. Airbnb struggled to get traction until it leaned into the design of its listings. Twitter began as a podcasting company. YouTube started as a video dating site. The myth of the perfect business plan executed flawlessly is just that — a myth. Great companies are built by people who respond to feedback, evolve under pressure and reframe adversity into advantage. If you're in the trenches, facing a wall, you're not alone — and you're not stuck. A pivot might be exactly what your company needs. The key is to stay curious, stay humble and keep moving. Some of the greatest breakthroughs in business don't come from doubling down; they come from turning the wheel.
Forbes
14-05-2025
- Business
- Forbes
Pivot or Persevere? 3 Hard Truths for Business Owners
Every founder hits a moment when momentum slows, ideas stall, and you're stuck between forcing ... More growth or finally letting go. Every business owner hits this point eventually: the uneasy moment when momentum slows, ideas stall, and you're stuck between forcing growth or finally letting go. You've poured everything into the business. And yet, something's off. Revenue plateaus. Energy dips. Vision fades. Is this just a rough patch... or a red flag? Should you pivot or persevere, or exit altogether? The hardest part of being a freedom-driven entrepreneur isn't the building, it's the knowing. Knowing when to double down. Knowing when to switch gears. Knowing when to walk away. If you've ever felt torn between pivoting, persevering, or exiting, here are three brutally honest questions to ask before you make your next move. There's a fine line between a rough season and a dead end. Successful founders know how to ride the waves of entrepreneurship, but they also know when they're swimming against the current. If you're honest with yourself, is this a temporary dip or a long-term decline? Rebecca, a client who ran a successful service business for eight years, said it best: 'Time can pass, and there can be no growth. That's the warning sign most of us ignore.' She had tried everything: new marketing funnels, new hires, new positioning. But under the surface, she was emotionally checked out, and the numbers reflected it. If your business has felt stagnant for longer than you're willing to admit, answer these 3 questions to gain clarity: If even one of these hits close to home, it's not a signal to hustle harder, but instead to pause. Assess whether you're keeping the business alive out of obligation, not opportunity. Staying stuck too long drains not just your bank account, but your potential. The goal isn't to be a hero who 'never quits.' The goal is to grow—whether that means scaling up or stepping away. Let's get this out of the way: you don't need to be a sales expert to make money. But if you're still undercharging or awkwardly selling your services, there's a good chance your confidence is keeping your business small. One founder told me he felt 'weird' raising his prices, so he tested a simple approach: after every successful sales call, he bumped his rate by 5%. No big launch. No new offer. Just one confident shift. 'Each new sales call, I raised the price a little bit.' he said. Within a few weeks, he'd doubled her revenue, without changing anything but his tone. The truth? You don't need permission to charge more. You don't need a perfect sales page or a huge audience. You need a message you believe in and a price that matches the value. Here's what I recommend to business owners who want to break through the revenue ceiling: Remember this: pricing is a reflection of how much you believe in the thing you've built. You've probably said it or thought it: 'Nobody can sell this like I can.' And you're not wrong, at least not in the beginning. Founders usually are the best salespeople, because they know the offer inside out. They've lived the transformation. They speak from passion, not a script. But here's the problem: being the only person who can sell is a bottleneck disguised as a badge of honor. You don't need to disappear from sales. You just need to stop being the only one who can close a deal. Here's the roadmap I give to business owners who want to extract themselves from the sales seat, without tanking revenue: It's all about reclaiming your time. Because if the business depends on you to sell, it's not scalable. And if it's not scalable, it's not sellable. Let's kill the myth that an exit only counts if it's big, flashy, and splashed across TechCrunch. In reality, most meaningful exits are quiet: I've worked with dozens of freedompreneurs whose exits didn't involve private equity deals or giant checks. But their exit were life-changing. They unlocked space. Flexibility. A next chapter. That's the kind of exit that matters. You don't need to hit a certain number to walk away with pride. You need to know what success looks like for you—and build toward it on purpose. Some exits happen through acquisition. Some through succession. Others through graceful liquidation or reinvention. What matters is that you're not clinging to something that no longer fits just because it used to define you. If you're building your business around a lifestyle, not just a valuation, remember: exiting isn't failing. It's finishing. There's a moment in every founder's journey when they feel stuck in the loop. Should I stay or should I go? Should I launch something new—or shut it all down? Should I raise my prices—or pull back completely? When you're in that fog, emotion takes the wheel. You start reacting instead of deciding. And indecision costs more than a wrong move. It robs you of momentum. The antidote? Clarity. Set a decision timeline. Define what success looks like: financially, emotionally, energetically. And ask the three questions we've explored here. Am I facing a fixable slump—or a deeper misalignment? Is pricing a confidence issue—or a real market objection? Have I built a business that depends on me—or one that can outgrow me? The goal isn't to force a decision today. The goal is to stop drifting and start choosing. Because sometimes the most strategic move isn't pivot or persevere. Sometimes, it's stepping back so you can move forward. And when you do that with intention, you'll stop asking 'Should I quit?' and start asking 'What's next?'.
