Pivot vs Diversification For An Effective Exit
When growth stalls, time to pivot or diversify?
Business fortunes can change quickly. So when growth stalls, do you double down or shake things up?
Signs it’s time to pivot or diversify:
> Revenue and profits flatlined
> Market feels saturated
> Customer needs evolved
> New tech disrupted you
It’s not always clear whether pivoting or diversifying is best.
Diversifying can reignite growth through lower-risk testing of new opportunities.
But pivoting is more radical — it requires intense focus, especially if your core business is stalling.
Your cash flow and finances often dictate the path. But also consider:
> Your personal exit goals and timeline
> Whether your core business can be further niched
Then take bold action, even when it’s difficult. The next 1–3 years are critical to shape your legacy and maximize value before an exit.
When growth stalls, assessing whether to double down or shake things up is key. Diversifying or pivoting each has pros and cons to weigh up. But standing still is often the greatest risk when fortunes can change quickly.
#business #strategy #growth #pivot #diversification
