- When to Pivot, Persist, or Pull the Plug
When to Pivot, Persist, or Pull the Plug
It’s time to make some changes…
When It’s Time to Pivot, Persist, or Pull the Plug
Last week, we talked about the typical income as an early-stage entrepreneur, and how having a low first year isn’t the end of the world. But what if it’s been that way for a while?
If you’re starting to recognize that the issues you’re experiencing are consistent, it may be time to pivot or pull the plug. On the flip side, there’s a few cases where persisting makes sense, too.
It’s Time to Pivot If…
You offer a variety of services, but people only book a few. If you have a signature service that’s bringing in the majority of the revenue, ditch the offerings that are bringing in $0. Hone in on that signature service, market the hell out of it, and assert yourself as the expert behind it.
It doesn’t mean you can’t offer your other services ever again. But it’s important to put energy into what’s working, not what’s consistently not working.
Your profit margins are small. If you have one or two months where profit margins are small, keep an eye on it. Sometimes, we’ll make a big investment in our business which will hurt our profits that month, but it doesn’t mean we need to change things up right away.
However, if your profit margins are consistently small, it’s time to rethink the structure you’re working in. It might be time to increase your prices, find some higher-paying clients, or look for ways to lower your expenses.
You’re constantly stressed. No amount of money is worth losing yourself to burnout. If you’re stressed 24/7, it’s time to outsource overwhelming tasks, scale back your work a bit, or pivot into a less stressful industry.
Customers are asking for another product or service. Let’s say you offer brand identity design, and you’ve found that lately, when you deliver the finished product to clients, they’re asking you about how to make sure their brand identity shines through in their social media.
This might be a good time to pivot your services — in this case, maybe add an optional social media starter kit with a series of Canva templates with their new brand colors.
Your interests have changed. Loyalty to one space has been prioritized in the working world (*cough cough* Anyone have parents that believe staying at one company for 20+ years is the best way to have a successful career?…) but it isn’t realistic for most people to love the same thing forever.
If you’ve realized you’re just not interested in what you’re doing anymore, it’s okay to switch to something that does interest you.
It’s Time to Pull the Plug If…
You’ve pivoted several times and nothing’s working. One study I found showed that 80% of early-stage companies pivot at least once. So, pivoting a couple times is normal. But if you’ve pivoted 12 times and nothing seems to stick, it might be time to retire the idea.
You’re consistently losing money. A couple months in the red isn’t the end of the world. But it’s been more than 6 months without profit, it might be time to rethink things. (Note that this advice might not apply to early-stage startups funded by investors.)
You don’t like your business idea anymore. Investing time, energy, and money into something you don’t even enjoy makes little sense. It’s okay to leave something behind because it’s no longer something you like doing.
You Should Persist If…
You truly love what you do. Busting your a$$ to barely make a profit in the beginning doesn’t make sense if you hate what you’re doing. If you love where you’re headed though, keep at it.
The vision is still clear, and you can picture yourself arriving there. Businesses take time to build. If you can still see the vision and the path to the top is clear, keep going. You can’t get to the top without being at the bottom first.
You’re okay with a bit of inconsistency if it means getting to your desired end result. Inconsistency, in both workload and income, is normal in the beginning, but it can be frustrating. If dealing with inconsistency is worth it to you, keep going.
If you opt to pivot or persist, you’ll want to check out this database of 180+ resources. We compiled the best videos, articles, books, podcasts, and guides for almost every single problem entrepreneurs could face. 😅
If you find it useful, bookmark the tab so you don’t lose it!
If you’re feeling down about having to pivot, read this article — some of the most well-known companies, like Twitter and PayPal, made massive pivots and are highly successful.
6 new opportunities this week! For more opportunities, check out the full list here.
For US education-focused clients. *Follow the directions to apply in the post!
A sustainable real estate company needs helps with brochure design for an upcoming launch. Pays $25-$50/hour.
Must be good at Framer. Experience in front end and back end preferred. Budget of $1,000 to $5,000 👀
Looking for teachers/editors with knowledge in the Spanish language to write dual language classroom curriculum. Would be a solid side hustle for teachers. 👀
A company is looking to interview recent grads or students in their final year of a business, engineering, or tech degree. Must be looking for a job or open to job opportunities. $110 for a 2 hour interview.
Bark is an online marketplace that allows you to sell just about any service – from dog training, to photography and design, to private investigation services.
Want to see a specific type of work? Just let us know.
What I’m Thinking About
Regardless of what you choose to do, you’re in the right place (this newsletter is all about how to create a life you love financially and career-wise, no matter what that looks like).
Whether you choose to persist, pivot, or close up shop, the goal likely remains the same: to make a living doing something you enjoy.
So, next week we’ll dive deeper into practical steps you can take right now to increase your revenue and profit to prevent you from getting to the place where you have to shut things down. I’ll be sharing exclusive tips from the multiple-six-figure earners in my network, so you won’t want to miss it.
See ya next week,