Newsletter No. 18 | Kill. Pivot. Scale.

As the new year kicks off, let’s talk about focus. Many businesses hold onto dying business models simply because they still generate revenue. But here’s the reality: If the Swiss Market Index (SMI) grows by 10% on average this year, and your business isn’t growing at least that much, you’re already falling behind. Staying still isn’t neutral—it’s decline. And the real cost? It’s not just lost revenue. It’s lost energy.

Keeping something alive just because it makes money is an opportunity cost—a silent drain on focus, time, and execution power that could be fueling real growth. I learned this the hard way.

One Insight from Me

Last year, I started Dawn with a clear goal: business model innovation and venture building. But as the year progressed, I found myself taking on smaller consulting projects, digital transformation work, and workshops. They brought in revenue, but when I took a step back, I realized:

I wasn’t as clear as I thought. Some clients equated innovation with digital transformation, but for me, it’s about business model transformation and venture building. The more I took on misaligned projects, the more I diluted my focus. So I made a decision. I cut digital transformation work and phased out smaller consulting initiatives unless they directly led to venture building. Dawn Consulting is becoming Dawn Ventures. A sharper direction. A business that truly reflects what I want to build.

But let’s get back to you.

Every week, I write these newsletters based on what I see in my venture projects and in the businesses I work with. And time and time again, I see the same pattern: lack of strategic focus. Too many companies spread their efforts across too many things, holding onto underperforming businesses or projects simply because they generate some revenue.

So if I were in your shoes, this is how I would approach it.

How to Decide What to Kill, Pivot, or Scale?

Step 1: Conduct a Strategic Portfolio Review

List all your projects, business units, services, or ventures and score them based on:

• Revenue & Profitability → Is this making money? What’s the margin?

• Growth Rate → Is it growing by at least 10% a year, or is it stagnating?

• Market Potential → Is the industry expanding, or are you competing in a shrinking market?

• Customer Demand → Are clients actively asking for this, or are you pushing it?

• Operational Strain → Does this consume too much energy relative to the value it provides?

If something scores low across multiple areas, it’s a red flag—it might be time to kill it.

Step 2: Map Your Business to the McKinsey Three Horizons

• Horizon 1: Core business → Must be optimized and strengthened.

• Horizon 2: Emerging opportunities → Worth testing but should connect back to your core.

• Horizon 3: Disruptive bets → High risk, high reward. Should be limited in time and effort, unless your core business is strong.

Warning: Many companies keep businesses alive for too long without real results. If it’s been a year with no traction, it’s time to rethink. For me, digital transformation work was a distraction. It was far from my core—so I dropped it.

Step 3: Apply the “Kill, Pivot, Scale” Framework

• Kill → If it’s draining energy and not scaling, eliminate it ruthlessly.

• Pivot → If it has potential but needs a tweak (e.g., better positioning, pricing, or execution), adjust and test.

• Scale → If it’s growing, profitable, and aligned, double down and allocate more resources.

Step 4: Stress-Test with Financial Modeling

Before making final decisions, use basic financial modeling to test:
What happens if you kill the underperforming projects?
What happens if you scale the best-performing projects?
Does pivoting one or two ideas significantly improve their potential?

Once you’ve identified what to cut, commit to it.

• Set a timeline (e.g., phase out within 3 months).

• Communicate the decision clearly (internally and externally).

• Redirect resources toward high-growth areas.

One Question for You

What’s one initiative you can pause or eliminate today to create more focus and momentum on what truly drives success?

One Opportunity for Us

Need help in assessing what to kill, where to pivot or how to scale? Let's talk - A fresh perspective and some tough questions might help.