An Accountant’s Guide to Successfully Pivot your Startup for Better Profits
Entrepreneurs in the Middle East might have heard a theory that 90% of the startups fail before they do ’X or Y’. You can fill in the X or Y with factors such as no market need, running out of cash, being outplayed by competitors, poor marketing etc. Failure to pivot at the right time is also cited as a reason for startup failure in the UAE. Startups that are struggling can think of building a strategy for pivoting with the help of accounting firms in Dubai.
A pivot means changing the direction of a business when its current offerings such as products or services don’t help to improve revenue or stay afloat in the market. Covid-19 is one such situation where many startups were pushed into a dead end. Introducing a new product or service has helped many startups better their revenue prospects. However, pivoting is not a fool-proof business decision that can miraculously save any business.
If done wrong, pivoting can make no big difference to the current growth trajectory of your startup. Getting timely advice from accounting firms in Dubai can help your ailing startup survive in the market by successfully pivoting. Read ahead to understand the key aspects such as when to pivot and how to pivot which may drive your startup to success.
When to Pivot your Company?
It’s a dumb notion to consider pivot as a magic pill that puts to rest all your business woes. Startups should only turn on the pivot mode when necessary. You can pivot in the following circumstances:
a. You don’t see much progress despite investing a good amount of money and resources
b. Competition is too high in the market
c. The company’s growth has plateaued
d. Increasing debt
e. Your perspective about the industry changed
f. Customers not responding to your product as you expected
g. Only a few of your company’s services/products get traction
This is not conclusive but an indicative list of circumstances under which you can pivot your startup. The best accounting firms in Dubai can advise you whether pivoting is the right solution for your business woes.
How to Successfully Pivot your Business?
With the advice of accounting firms in Dubai, you can adopt the following steps to successfully pivot your startup:
Assess the Current Situation
Before taking the big decision, start assessing the current situation of your company. With the help of your accountant analyse the financial results, assess where you are as an organisation presently, and evaluate the strength and weaknesses of your operational activities. Have a look at your current strategy, evaluate its strength and weaknesses and decide if any changes to the strategy are required.
Also, review all the technology resources, and employees to determine how you fare as an organisation in the cutthroat UAE market. Talk with the best accounting firms in the UAE to help you dive deep into every detail and come out with an accurate evaluation. This will help you get an idea of the changes that you will be required to make.
Evaluate your Business Vision
You should reassess your original business vision to see if it is still relevant. Check if you have the same strategy and objectives that you once had. Analyse the current challenges and see how it differs from the challenges you previously had. Along with that the new opportunities and strengths must also be considered. The core objective of this reassessment is to see whether the past control measures are applied in the present scenario.
Analyze what your competitors are doing
Before you pivot, look at what your direct competitors are doing and how you can do it better. If you are planning to offer the same products or services as your competitors at around the same price point, you might not be able to see significant results. At the same time, look at how big your competitors are and if your startup can compete with them.
Set goals that align with your business
Before the decision is made, you must define new goals that are in sync with your new and pivoted business. Decide on new revenue goals and customer traction numbers. Comparing your business against the same old goals will not give you a clear idea about how your company is doing.
Get Help from the Best Accounting Firms in Dubai, UAE
The idea of pivoting your business out of the blue is intimidating but it becomes inevitable when your startup doesn’t rise to your expectations. Trying your luck at pivoting may help you recover from your low phase and earn a profit. The decision to pivot is important but doing it the right way is more important. To pivot successfully, you need the advice of the best accounting firms in Dubai such as Jitendra Chartered Accountants (JCA).
As one of the few accounting and bookkeeping firms in the UAE to cross the 20-year milestone, JCA can provide robust solutions for your startup. Our accounting services in Dubai will come in handy for you to analyse your company’s current financial position and reassess future goals. We can help you tell what’s at stake if you pivot and what you can gain by pivoting. We are in the best position to advise you on the pros and cons of taking such impactful decisions as we have helped thousands of businesses of all sizes and industries.