The Power of Pivoting and Adapting in Business with Dan Goman

Every business starts with an idea—something that fills a market gap, solves a problem, or brings a new product to life. Entrepreneurs often tie their identities and capabilities to this idea, driving them to push through challenges and skepticism. This deep personal connection can be a strong motivator, helping them overcome obstacles and persist where others might quit.

However, the reality is that the initial vision for a company may not lead to success. Many businesses find that their original idea needs to evolve to achieve scalable growth and long-term success. Leaders must know when to persevere and when to pivot. Adaptability involves more than just reacting to immediate challenges; it’s about balancing a commitment to the original vision with the flexibility to respond to new information and external pressures.

The Myth of the Inflexible Vision

A common myth in the business world is that sticking rigidly to an original vision is what makes a successful leader. This belief suggests that true entrepreneurs never stray from their initial plans and that any deviation is a sign of weakness. While this makes for compelling stories about legendary business figures, it doesn’t hold up in the complex realities of modern business.

In practice, the ability to adapt and pivot often separates thriving businesses from those that fail. Market conditions, consumer preferences, and technological capabilities constantly change. Companies that stick too rigidly to their initial visions risk becoming obsolete. Successful entrepreneurs understand that their initial business concept is just a starting point. They are prepared to iterate and evolve their strategies as needed.

In 2015, Dan Goman realized that Ateliere Creative Technologies’ initial approach wasn’t working. The company started out as a content streaming business and faced high operational costs and technological challenges, making it clear that traditional content solutions relying on outdated legacy systems were inadequate for digital streaming.

“Operating a digital streaming service was new at the time,” said Goman. “Every content company was struggling with the lack of robust streaming technology solutions. Operating a streaming content service is very capital intensive, and our initial venture didn’t see significant success.”

Goman, with a background in software, recognized Ateliere’s strength in technology development. He pivoted the company to focus on building a proprietary technology platform to better manage and deliver content. This shift positioned Ateliere as a leader in digital streaming technology, offering solutions that improved the efficiency and scalability of digital media operations.

Avoiding the Sunk-Cost Fallacy

In 1996, two expeditions attempted to summit Mount Everest. Despite deteriorating conditions, the climbers continued because of the time and money they had already invested. Tragically, neither expedition succeeded.

This illustrates the sunk-cost fallacy—continuing a failing endeavor because of the resources already invested. In business, this can be equally hazardous. Leaders may persist with failing strategies because they don’t want to acknowledge wasted resources, leading to further losses and missed opportunities.

“We kept wasting money with antiquated technology not designed for digital first,” said Goman. “But we decided to stop throwing money away and build our own tech team and technology.”

Goman’s pivot shows adaptability in action. By stopping investment in failing strategies and focusing on internal strengths, Ateliere turned a potentially ruinous situation into a success. This move not only saved the company from further losses but also positioned it for innovation and growth.

Recognizing Core Competencies

Strategic pivots often come from understanding a company’s core competencies—the unique strengths that give it a competitive edge. Recognizing and leveraging these strengths can lead to strategic changes that align more closely with market opportunities.

YouTube is a classic example. Initially a video-based dating service, it gained traction by pivoting to a general video-sharing platform, recognizing the core competency in easy video uploading and sharing. Similarly, Dan Goman realized that Ateliere’s strength was in technological innovation, not content creation.

“I used to worry about our lack of knowledge in content creation,” said Goman. “But when partners praised our speed in tech development, I realized our strength was in software, not content.”

Recognizing core competencies is crucial for ensuring that future adaptations align with a company’s strengths. When a company understands its core competencies, it can strategically decide on new markets, products, and innovations, enhancing its competitive edge and maintaining consistency in its brand and market position.

Business leaders often fear that pivoting means retreating from their vision. However, a pivot is a strategic reorientation toward a direction better suited for the company’s strengths and market opportunities. It’s about adapting to ensure sustainability and growth, leveraging core competencies in new, effective ways. By reevaluating their path, leaders can guide their ventures toward long-term success, ensuring that every step, even if it seems like a departure, is actually a strategic move toward the company’s goals.