As an entrepreneur, you will find yourself adapting your business as you encounter opportunities and obstacles. Adjustments are a natural part of growing and running a business, and you’ll find that usually small refinements and tweaks can keep your business running and thriving.
However, situations may arise that require bigger changes to your long-term plans. You may even need to find ways to run your business completely.
With early-stage businesses short on time and money, it’s essential to work closely with investors and other stakeholders both in planning a pivot and early on throughout the process to get you to the right pivot faster and more accurately.
When planning a pivot, your job is to develop your plan of action and explain it to all stakeholders, including investors, board members, members of your team, and advisors.
Work with your investors before a pivot
A pivot is not a time to fly solo, so approach the pivot as a team effort. Investors have a vested interest in the success of your business. After all, it’s their money that’s at stake!
There’s no shame in turning. On the contrary, it is a sign of strength.
Also remember that as a founder you are very close to your company. The idiom “not seeing the forest for the trees” applies here. You need input from your investors, board members and other stakeholders because they can see the bigger picture.
When your investors are part of your pivot plan, they have the opportunity to provide valuable perspectives, ideas, and connections to others that can help make your pivot successful.
Best practices for working with investors
Often the CEO is the first to realize the business needs to run. When you start planning, make sure you’re ready to let go of the status quo. You need to embrace the mindset that your business may not thrive or survive if it’s not running.