When to swerve, when to pivot, and how to tell the difference

"When Stephanie Downs, cofounder of Uncaged Innovations, a biomaterials startup creating alternatives to animal leathers, learned about the tariffs earlier this year she was forced to add manufacturing outside of the U.S. Since less than 2% of fashion goods are produced in the U.S., all of Uncaged customers are overseas and now enduring a price hike. Like many startup founders, Downs has had to react and adjust operations and business plans based on geopolitical and economic shifts."

"Just as the pandemic forced massive shifts across sectors, today's founders are navigating a new wave of disruptions: tariff uncertainties, declining federal grants, and changing customer behavior. The same index found that two out of five business leaders are reporting delayed orders, as well as longer sales cycles and a more carefully examined buying process. Downs has experienced similar challenges at Uncaged, with some customers canceling orders due to tariffs on materials shipping into China."

"Companies that simply freeze in uncertainty often don't survive. Those that tack and shift their approach can manage though, and even take advantage, of the changes. At Golden Seeds, after two decades of experience investing in early-stage women-led companies, we've come to view this as "swerving" and it's just as critical-if not more so-than the dramatic course corrections that pivots imply. The art of adapting isn't a one-time decision. It's a continuous process of listening, learning, and iterating."

Tariff changes forced a biomaterials startup to add manufacturing outside the U.S., raising costs for overseas customers. Less than 2% of fashion goods are produced domestically, amplifying exposure to global trade shifts. Over half of small business leaders report negative impacts from changing tariff and trade policies. Founders face a new wave of disruptions including tariff uncertainties, declining federal grants, delayed orders, longer sales cycles, and more scrutinized buying processes. Some customers cancel orders because of tariffs on materials shipped into China. Proactive, continuous adaptation — described as 'swerving' — involves listening, learning, iterating, and making smaller course corrections rather than only dramatic pivots.

Read at Fast Company