The Power of the Pivot: Why Entrepreneurs Must Embrace Change
- Gabriel Flores
- Mar 2, 2022
- 4 min read
Updated: Oct 7, 2024
In a recent episode of The Shades of Entrepreneurship, I welcomed the owner of Gallery GoGo, Azure Attoe, an entrepreneur with years of experience across various industries.
Gallery GoGo is a gallery, boutique, gift shop, bookstore and event space all in one at Pioneer Place. They exhibit and sell work by a wide variety of artists and makers, and have a curatorial focus on work by emerging, BIPOC, women and LGBTQ+ artists.
Our conversation got me thinking about one of the most critical skills for any entrepreneur: The Power of the Pivot: Why Entrepreneurs Must Embrace Change.
What is pivoting, why is it important, and why should entrepreneurs care?
If you’ve ever played basketball, you’re already familiar with the concept of a pivot. On the court, it’s when you keep one foot planted while changing direction with the other, creating an opportunity to get around obstacles. In business, pivoting is much the same.
According to Forbes, pivoting means fundamentally changing the direction of a business when your current products or services aren't meeting the needs of the market. The goal is simple: to improve revenue, adapt to new trends, or, in some cases, survive.
Why Pivoting is Essential for Survival
You might think pivoting is a sign of failure, but in reality, it’s a sign of resilience. Many of the most successful companies we know today pivoted at some point. Take Odeo, for example. Never heard of it?
That’s because Odeo was a podcast network founded by the creators of a much bigger name: Twitter (now X). When Apple’s iTunes began to dominate the podcast market, Odeo’s founders gave themselves two weeks to come up with a new idea. The result?
A social media platform that would go on to revolutionize communication around the globe.
Another great pivot story comes from William Wrigley Jr., a soap salesman who gave away baking powder as an incentive to buy his soap. After noticing that the baking powder was more popular than the soap, Wrigley pivoted to selling it instead. Then, in another pivot, he realized people liked the gum he was giving away even more.
Today, Wrigley’s gum is a household name, and the company’s legacy continues to flourish—just take a trip to Wrigley Field in Chicago for a reminder.
Examples of Successful Pivots
Some of the world’s biggest brands are where they are today because of their ability to pivot:
Starbucks: Initially focused on selling coffee beans, they pivoted to becoming a café-centric brand, revolutionizing the coffee shop experience globally
Nokia: Believe it or not, Nokia started as a paper mill in the 1800s. It eventually became a leader in mobile technology, showing the power of an adaptive business model
Netflix: I’m about to date myself here, but who remembers DVD Netflix? Back when we had to physically wait for our favorite movies to arrive by mail, Netflix was still figuring things out. Realizing the limitations of their DVD-by-mail model, they pivoted to a streaming service. And let’s not forget: Blockbuster had the chance to buy Netflix but passed on the opportunity. Today, we know how that story ended—with Netflix as a media giant and Blockbuster reduced to a single location in Bend, Oregon
When Companies Miss the Chance to Pivot
Of course, not all companies make the leap. Blockbuster could have pivoted but didn’t, and we’ve all seen the result. It’s a cautionary tale about the dangers of staying static in a dynamic marketplace.
Pivoting isn’t just a reaction to failure; it’s a strategy for sustainability. Entrepreneurs must always be forward-thinking, anticipating the next wave of innovation.
Like Wayne Gretzky famously said, "I skate to where the puck is going, not where it has been." This mindset is crucial for entrepreneurs who want to stay ahead of the curve.
Why Entrepreneurs Need to Pivot in Today’s Market
The global events of the past few years have shown us just how quickly the world can change. Entrepreneurs, especially small business owners, are no strangers to this reality. According to a 2019 SBA report, approximately 90% of startups fail, with 21.5% not making it past their first year and 70% not surviving beyond their 10th year. In a world where change is constant, the ability to pivot can be the difference between failure and success.
I’ll be honest: those statistics can feel daunting, especially for someone like me, building a business from the ground up. But here’s the thing—on this show, we don’t believe in failure. We believe in learning. Every setback is an opportunity to pivot, to adapt, and to grow stronger. That’s why it’s so important for entrepreneurs to stay tuned into their markets and remain flexible in their strategies.
Staying Ahead of the Curve
Take TikTok, for example. I recently opened an account, even though I resisted at first. I didn’t want to dance, and I felt like I was missing out on trends. But guess what? I soon realized that TikTok isn’t just about dancing—it’s a platform for reaching new audiences in innovative ways. That’s what a pivot looks like: recognizing where the world is headed and making sure you’re there, too.
But remember, a pivot isn’t a guaranteed solution. It’s still essential to stick to the fundamentals: understand your customers' needs, network strategically, stay informed about legal considerations, and ask for help when you need it.
The End Goal: Strengthening Our Communities
Ultimately, the goal of every pivot—and every entrepreneurial endeavor—should be to strengthen the community. For me, that means highlighting the incredible businesses in our communities and decreasing the failure rate of small businesses. The more we know about the great businesses around us, the better we can support them and help our communities thrive.
So, to all the entrepreneurs out there: embrace the pivot. Stay nimble, stay informed, and most importantly, stay connected to your community. Because as we’ve learned from the stories on this podcast, when we adapt, we don’t just survive—we thrive.
Together.
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