Entrepreneurship comes with its share of challenges. At times, it becomes necessary to change course to maintain success. However, how does one determine whether to pivot their business or exit altogether? Being able to recognize the signs is crucial to making the right decision.
If your business has ceased to grow, it may be time to consider a pivot. According to CB Insights, 17% of startups fail due to flawed business models. Therefore, if you are not making progress, it's important to reconsider your strategy and explore new opportunities. Market trends also play a significant role. The business landscape is constantly evolving, and 42% of startups fail because their products become obsolete. If your offering is becoming outdated, a pivot could help you remain competitive.
Customer feedback is another clear indicator. Data from Salesforce indicates that 76% of customers expect businesses to understand their needs. If your customers are requesting something different, it's a sign that your business needs to adapt. Additionally, passion matters. Burnout can affect even the most motivated entrepreneurs. Gallup reports that 23% of workers regularly experience burnout. If you are losing passion for your business, a pivot might help reignite your motivation.
However, there are times when it may be better to exit. Burnout and stress are major warning signs. The American Psychological Association found that 79% of people experience work-related stress. If running your business is becoming overwhelming and a pivot does not seem like the solution, it could be time to step away. Financial struggles are another sign. A study from U.S. Bank revealed that 82% of small businesses fail due to cash flow problems. If your business is consistently losing money, exiting might be the wisest choice.
You may also receive an unsolicited offer to buy your business. According to a BizBuySell survey, 21% of business owners sell due to such offers. If the price is right, it's worth considering. Personal priorities can also shift. The Exit Planning Institute reports that 50% of business owners exit due to personal reasons, such as desiring more time for other passions or family. If your goals have changed, exiting could be the best option.
Deciding whether to pivot or exit is not easy. Start by evaluating your finances. Can you afford a pivot, or is it better to exit now? Seek advice from mentors and peers for outside perspectives—they can help you determine the best course of action. Think long-term: can your business thrive with a new direction, or is exiting the better option moving forward?
Regardless of whether you choose to pivot or exit, the key lies in recognizing the signs and taking appropriate action. Making a well-timed decision can secure your future success, regardless of the path you decide to take.
RSVP for the Integro Bank CEO Club
Get the support you need from other business and financial leaders. We invite you to the next CEO Club. This monthly event will provide you with an opportunity to engage in insightful discussions and connect with a community of like-minded business owners and financial leaders. Don't miss out on this excellent opportunity! Click the link below to RSVP and secure your spot today.
RSVP For the Event:
https://www.integro.bank/CEO-Club-Event-RSVP