How do you know when it’s time to pivot?

Leaders and entrepreneurs know the value of resilience and perseverance — attributes that likely played a role in your success. But how do you know if you should persevere through challenges or if it’s time to pivot and move to something new?

No matter your industry, business is full of ups and downs. And while staying the course and focusing on long-term success over short-term wins is often valuable, leaders also need to be agile and willing to try something new.

It’s what Dr. Tommy Watson calls the circle of success and failure. Sometimes you’re in the valley and other times you’re on the mountain. These things are separated by time and perseverance. He says, “One of the greatest things you can do is look for stories of other individuals who have also had to pivot and know that it’s ok to pivot.” Just because one personal or professional goal didn’t work out doesn’t mean you or your business is a failure.

Valleys and mountains are both opportunities for growth and learning. During challenges, you can identify ways to improve in the future and learn so you avoid the issue or handle it differently next time. When you’re on the mountain and successful, you can share best practices with others.

How do you know when it’s time to move to another path and pivot? Here are four signs:

You’ve hit a plateau

Businesses fluctuate, but it could be time to shift gears if you’ve hit a prolonged plateau without noticeable growth or declines. Plateaus can happen for many reasons — perhaps the market is saturated, product development has stalled, or the industry is moving away from your product or service. In this case, pivoting to something new or looking at new applications for your product or service can help jumpstart growth.

You (or your employees) have lost the passion

Passion and excitement drive results. That doesn’t mean you have to be excited about every task and project, but you should still feel connected to the mission and goals of your business. If you notice you aren’t as engaged or passionate about your cause or your employees have lost enthusiasm, a pivot might help reignite the fire. Don’t rush into a pivot if you hit a rough patch; look for prolonged changes in your enthusiasm or if your perspective on your business has changed.

Underperforming metrics

Your company likely tracks numerous metrics, including growth rate to ROI. It may be time to pivot if you consistently aren’t hitting your goals in key areas. Your investors and stakeholders likely want to see you consistently reaching your goals and on a solid growth trajectory. The numbers can show you opportunities for improvement.

Lopsided growth

Growth is good, but don’t assume your company is set up for long-term success just because your numbers are growing. You may have one service line or product type that gets much more traction than the others, which may have declining sales or slow growth. Customers may resonate more with one product, or more competition in another area is preventing growth. Pivoting to what’s working and moving away from areas that aren’t as successful can help your company be more productive and successful.

Whether or not it’s time for a pivot, remember that pivoting isn’t a sign of weakness or failure — it’s an opportunity to adjust, learn, and grow.