Pivoting is a common practice in the startup world. It is the act of changing a startup’s business model, target market, or product offering. Pivoting can be a necessary step for startups that are not meeting their goals or that are facing changing market conditions.
There are many reasons why startups might pivot. Some common reasons include:
The market is not ready for the product or service. The startup may have developed a great product or service, but the market may not be ready for it yet. This could be due to a number of factors, such as the product being too expensive, the market being too small, or the product not solving a big enough problem.
The competition is too strong. The startup may be facing stiff competition from established companies. This can make it difficult for the startup to gain traction in the market.
The startup’s product or service is not resonating with customers. The startup may have developed a product or service that is not solving a real problem for customers. This can lead to low sales and a lack of customer satisfaction.
When to Pivot
There is no one-size-fits-all answer to the question of when to pivot. However, there are some general guidelines that startups can follow.
Pivot early. The earlier a startup pivots, the less time and money it will waste on a failed business model.
Pivot based on data. The startup should make decisions about pivoting based on data, such as customer feedback, sales data, and market research.
Pivot with a plan. The startup should have a plan for how it will pivot. This plan should include a new business model, target market, and product offering.
How to Pivot
There are a few different ways that startups can pivot.
Change the business model. The startup can change its business model to better align with the needs of its target market. For example, the startup could switch from a subscription model to a freemium model.
Change the target market. The startup can change its target market to a different group of customers. For example, the startup could switch from targeting businesses to targeting consumers.
Change the product offering. The startup can change its product offering to better meet the needs of its target market. For example, the startup could add new features to its product or launch a new product altogether.
Pivoting is a risky move, but it can be a necessary one for startups that are not meeting their goals or that are facing changing market conditions. By following the tips above, startups can increase their chances of success when pivoting.
Here are some additional tips for pivoting in startups:
Get buy-in from the team. Pivoting is a big change, so it is important to get buy-in from the team. The team should be involved in the decision-making process and should be committed to the new plan.
Communicate with customers. Let customers know about the pivot and explain why it is necessary. Customers should be understanding and supportive of the change.
Be flexible. The startup should be prepared to make further changes as needed. The market is constantly changing, so the startup needs to be able to adapt.
By following these tips, startups can increase their chances of success when pivoting.
