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Pivot: What It Means and How to Do It Successfully (Steps)

Startup life is full of ups and downs, and one of the most important skills for any entrepreneur is the ability to pivot. But what exactly does it mean to pivot in the context of a startup? In short, a pivot is a change in direction, strategy, or focus that a startup makes in response to new information or changing circumstances.

Pivots can take many forms, from minor adjustments to major overhauls. The key is to remain flexible and open to new ideas, while also staying true to the core values and mission of the company.

Knowing when to pivot is just as important as knowing how to pivot. Sometimes, a startup may be too quick to change course, abandoning a promising idea before it has had a chance to take root. Other times, a startup may be too slow to adapt, sticking with a failing strategy for too long. By staying attuned to the needs of their customers, competitors, and the market as a whole, entrepreneurs can make informed decisions about when and how to pivot their startup.

What is a Pivot?


A pivot is a fundamental change in a startup's business model or product direction. It involves making significant changes to a company's core strategy to better align with market needs, customer preferences, or other factors that impact the bottom line. A pivot can take many forms, including changing the target market, the product offering, the revenue model, or the distribution channels.

A pivot is not a sign of failure but rather an opportunity for growth and success.

Why Pivot?

Startups pivot for many reasons. One common reason is that the initial business model or product offering does not resonate with customers or fails to gain traction in the market. In other cases, a startup may discover a new opportunity that better aligns with its core competencies or the market landscape may shift, requiring a new approach. Pivoting can help a startup stay relevant and competitive in a rapidly changing market.

When to Pivot?

Knowing when to pivot is crucial for a startup's success. It is important to pivot as early as possible to avoid wasting time, effort, and resources on a failing business model or product offering. However, it is equally important to have enough data and feedback to make an informed decision. Startups should constantly evaluate their business model and product offering and be willing to pivot when necessary.

How to Pivot?

Pivoting can be a challenging and complex process, but here are steps that startups can take to pivot effectively:

  1. Assess the need: Determine if pivoting is necessary by evaluating the current business performance and identifying the core reasons for pivoting (e.g., low market traction, changing market conditions, better opportunities).
  2. Conduct market research: Explore alternative markets, customer segments, and potential new opportunities. Gather customer feedback, analyze competitors, and identify trends.
  3. Identify the new direction: Choose the most promising new opportunity that leverages your existing resources, skills, and capabilities while addressing the market gap or customer pain points.
  4. Validate the new idea: Test the viability of your new direction by conducting surveys, interviews, and focus groups with potential customers. Adjust the idea based on feedback to ensure it resonates with your target audience.
  5. Develop a pivot strategy: Outline the specific steps needed to pivot, including changes to your product/service, target market, pricing, sales channels, and marketing tactics. Include a timeline and resource allocation plan.
  6. Communicate the pivot: Inform your team, investors, and other stakeholders about the pivot and the reasons behind it. Seek their buy-in and support to ensure a smooth transition.
  7. Realign resources: Shift resources (e.g., personnel, budget, and time) to focus on the new direction. This may include hiring new talent, retraining existing employees, or reallocating budget from other areas.
  8. Revise business plan: Update your business plan to reflect the new direction, goals, target market, and financial projections. This will serve as a roadmap for your pivot and help guide decision-making.
  9. Execute the pivot: Implement the changes outlined in your pivot strategy, monitoring progress and adjusting as needed. Be prepared to iterate and refine your approach based on market feedback and performance.
  10. Measure success: Continuously track key performance indicators (KPIs) to assess the success of your pivot. Evaluate your progress and make data-driven decisions to optimize your strategy.

Examples of Successful Pivots

Many successful companies have pivoted their business model to find success. Here are a few examples:


Slack, a popular communication tool, started as a gaming company called Tiny Speck. However, they realized that their internal communication tool was more popular than their game. They pivoted their business model to focus on this tool, which eventually became Slack.


Instagram started as a location-based check-in app called Burbn. However, they noticed that users were more interested in sharing photos than checking in. They pivoted their business model to focus on photo sharing, which eventually led to the creation of Instagram.


Groupon started as a platform called The Point, which aimed to bring people together to accomplish a common goal. However, they noticed that their users were more interested in the daily deals that they offered. They pivoted their business model to focus on daily deals, which eventually led to the creation of Groupon.


Pinterest started as a mobile app called Tote, which allowed users to shop for products from their phone. However, they noticed that users were more interested in saving and sharing images of products. They pivoted their business model to focus on this feature, which eventually led to the creation of Pinterest.

Challenges of Pivoting

While pivoting can be a necessary step for the growth and success of a startup, it is not without its challenges. Here are some of the common challenges that startups face when pivoting:

  • Resistance to change: Pivoting can be a difficult decision for startup founders and employees who have invested time, money, and effort into the original business idea. There may be resistance to change, especially if the pivot involves a significant shift in the company's direction or strategy.
  • Loss of momentum: Pivoting can also result in a loss of momentum, as the startup may need to pause or slow down its operations to implement the changes. This can be particularly challenging if the startup is already struggling to gain traction or meet its goals.
  • Uncertainty: Pivoting can introduce a level of uncertainty into the startup's future, as it may be difficult to predict how the new direction or strategy will play out. This can be unsettling for founders, employees, investors, and other stakeholders.
  • Resource constraints: Depending on the nature of the pivot, the startup may need to invest in new resources, such as talent, technology, or infrastructure. This can be challenging if the startup is already operating on a tight budget or struggling to raise capital.

Despite these challenges, pivoting can also bring new opportunities and benefits to a startup. By addressing the challenges head-on and developing a clear plan for the pivot, startups can increase their chances of success and growth.