Greg Weatherdon

Pivot! Just pivot! That’s what your being told if you’re having challenges running your SME. It’s another one of those words that actually had value once upon a time. Now, it’s so abused that’s it’s nothing more than a throwaway statement by individuals who want to sound like they’re offering intelligent advice, but really aren’t. Realistically, most businesses can’t pivot.

If we’re to be honest, most individuals have a heck of a time coming up with one idea that they can get excited enough about to take the plunge. That doesn’t mean it’s a good idea. It’s just an idea that they’re prepared to risk their time, energy and resources on to make happen. Even then the failure rate exceeds 50% in the first 3 years and upwards of 85% in 5 years.

So my point is pivot to what? It’s so hard to have one idea let alone coming up with a second one, especially when under duress. I say duress because you wouldn’t even be considering pivoting if everything is running along fine.

No, most often a pivot or rethink is a result of a failed idea, a competitive threat or 100 year storm such as Covid-19. So I say duress because in most cases your business is heading to the ground with the power on and you’re desperate. And when things get desperate, we need a fix and in a hurry. That usually means doing something, anything to generate revenue and stop the bleeding. Unfortunately, being stressed out is not necessarily the best time to make decisions.

The news is full of stories showcasing various companies that have reinvented themselves during Covid-19. But on closer inspection of the stories, I don’t think they’d qualify as pivots as much as a survival strategy.
Imagine Jen Theodore-Unsplash
It's about survival
For example, how many clothing manufacturers converted their sewing rooms from producing apparel, to manufacturing medical masks? I’m pretty sure they’re not going to continue once the storm has passed. It’s a safe bet that most will return to fashion as soon as they can. This is not a pivot, it’s about survival.

The same can be said about distillers and micro brewers who started producing hand sanitizer. This is not a long term strategy. It’s about generating some short term cash flow by utilizing existing facilities and processes. Which at it’s core is distilling alcohol. It’s nothing more than a finger in the dyke. Once demand is satisfied, then what?
"Chances are their pivot is only a few degrees off of their original idea"
Alternatively, some businesses have got nowhere to turn. Take the hospitality industry for instance. They can’t just convert their hotels rooms into alternative use. To be sure restaurants can offer takeout or delivery, but that’s not a pivot. It’s just an extension or alternative to what they are already doing and sadly won’t cover their costs. Again, it’s a just matter of generating some cashflow and of survival.

Retail is another example. Making your offering available online because of a massive drop in walk-in traffic, certainly sounds easy. But it’s a lot more involved than most imagine. Such as setting up your website, getting and managing your inventory online and establishing your payment gateway. None of it is easy and it costs money. Money that most small businesses don’t have.

Let’s not forget all the time and energy required to promote and get visible once you are setup online. That of course assumes you have the necessary skills to begin with. Granted, you can try to learn these new skills, but that takes time. In the meanwhile, you still have rent and utilities to pay.

Yes, there are companies that have managed to pivot and have found success. That just tells me that their original idea probably may not have been as sustainable as they first thought. However, these companies appear to be sufficiently versed in their industry that they’ve managed to...