Published On: December 8, 2017At a recent Northland Coffee Connect, Dave Palmstein, Managing Director of the Northland Angel Investors Network, spoke about the need for start-ups to show proof of business. In other words, can you prove buyers will purchase your product or service? What happens, however, when after years in business – with tangible proof of business - your perfect solution is no longer a match for your target audience? For many entrepreneurs, the answer is: PIVOT.
Famous Business PivotsAccording to Jason Nazar, a contributor to Forbes.com, during early and second stage growth phases, nearly every business should contemplate a course correction. It’s normal and healthy. For example did you know that before their pivots:
- Facebook and YouTube started as dating sites?
- Starbucks started selling espresso makers and coffee beans in 1971 until founder Howard Schultz returned from a visit to Italy determined to brew and sell coffee in European-style coffeehouses?
- Hewlett-Packard began as an engineering company in 1947, creating electrical testing products before shifting solely to home computers in the 1990s?
- Wrigley didn’t always sell gum? Mr. Wrigley Jr. began his entrepreneurial journey as a soap and baking powder salesman who offered free chewing gum with his purchases. When gum proved to be more popular than his products, he went on to manufacture his own chewing gum brands.
- Founder of Suzuki high-performance motorcycles is best known as the inventor and purveyor of weaving loom machines?
Five Pivot ConsiderationsAre you considering a pivot? Have you found yourself at a crossroads? Consider the following. Streamline and specialize. Often business concepts begin broad and far-reaching. Literally, you offer everything to everyone. This approach confuses customers and dilutes your marketing impact. After initial traction, growth opportunities
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