{"id":1505,"date":"2023-06-24T06:55:05","date_gmt":"2023-06-24T06:55:05","guid":{"rendered":"https:\/\/www.founderlabs.in\/?p=1505"},"modified":"2023-06-24T06:55:05","modified_gmt":"2023-06-24T06:55:05","slug":"why-and-when-should-a-startup-pivot","status":"publish","type":"post","link":"https:\/\/www.founderlabs.in\/?p=1505","title":{"rendered":"Why and When Should a Startup Pivot?"},"content":{"rendered":"\n

Few people know that YouTube was created as a dating site where users could
post videos to describe their ideal partner. The original concept was, however,
not received well and the company\u2019s founders Steven Chen and Jawed Karim
decided to pivot. YouTube\u2019s pivot to allow users to host all kinds of videos was
successful and made the platform a highly popular one. Similarly, Instagram, a
successful social media platform was initially launched as Burbn, a location-based
check-in service.<\/p>\n\n\n\n

What is Pivoting?<\/strong><\/p>\n\n\n\n

Pivoting refers to a company or a business changing its original business model or
product or offerings to find success. A change in the marketing strategy to appeal
to new customer categories is also a part of the pivot. This relatively fluid concept
always involves a change in the business strategy<\/a> of a startup.
This strategy of changing gears to a new business model is hard and risky.
Startups should embark on a pivot only if they are convinced that it will be worth
it. A pvot can happen at any stage of a company\u2019s life and may involve scrapping
a key product or a market.<\/p>\n\n\n\n

\"Pivot\"<\/figure>\n\n\n\n

When to Consider Pivoting?<\/strong>
Pivots are hard and it is difficult for a business to recognize that it needs to
drastically change its business model. Some signs that indicate that a business
needs to change its strategy are:<\/p>\n\n\n\n

    \n
  1. One Product Feature is Doing Well-<\/strong> If a review of your existing business
    model reveals that one feature or aspect of your product is being received
    well while others are not, you should consider pivoting that feature into a
    full-fledged product.<\/li>\n\n\n\n
  2. Business is not Financially Viable-<\/strong> Merely having a good business idea is
    not enough. It should be financially viable too. An objective analysis of your
    business idea will reveal what aspects are worrisome and burdening the
    finances. The business also needs to find ways to identify the available
    resources in a better manner. This helps in identifying a reference point for
    pivoting.<\/li>\n\n\n\n
  3. Poor Market Response-<\/strong> Another good reason to consider pivoting is when
    the market response for your product or service offering does not match
    your expectations. This could be due to many reasons including faulty
    products, high level of competition, overpricing, or changes in customer
    requirements. Change your business model to provide better value to customers.<\/li>\n\n\n\n
  4. Too Much Competition<\/strong>– Pivoting can also be considered if the market for
    your product is overcrowded and competition is tough. Differentiation is
    the key to overcoming high competition. You will either need to modify
    your product or business model or adopt new marketing strategies to beat
    the competition. This is pivoting.<\/li>\n\n\n\n
  5. Shift in Your Goals<\/strong>– Another reason for pivoting could be a change in your
    goals or objectives. This could be because of changing regulatory
    environment or market dynamics.
    How to Pivot?
    Pivoting is also difficult to implement and may demotivate the employees while
    draining the energy and resources of the business. So, it needs to be thought out
    carefully and planned well. This will reduce the chances of your business hitting
    another roadblock. Here are some tips to successfully pivot your business:<\/li>\n\n\n\n
  6. Discuss with Stakeholders- <\/strong>An important step in your pivot journey is to
    involve all stakeholders and discuss the reasons for pivoting. Talking your
    investors, employees, and other associates into confidence will help you
    get better insights and ensure their cooperation in the whole process.<\/li>\n\n\n\n
  7. Be Decisive-<\/strong> Once you have decided to pivot, set a plan of action and
    implement it immediately. This will reduce the wastage of time and
    resources and help in improving business metrics.<\/li>\n\n\n\n
  8. Acquisition of New Skills-<\/strong> Pivoting whether in the form of a changed
    product or strategy may require the acquisition of new skills. Identify the
    skills required and ensure that your existing workforce acquires them. You
    may even need to employ more people who specialize in these skill sets.<\/li>\n\n\n\n
  9. Accept the Change Happily<\/strong>– Although pivot takes you away from your
    initial idea or business model, it is important for growth. Accept the change
    gracefully and let go of previous failures. This approach will help in a
    smoother transition while allowing you to focus on the new goals and
    objectives.<\/li>\n<\/ol>\n\n\n\n

    Pivoting can be beneficial for startups since it allows them to find new growth
    opportunities while staying ahead of the competition. But the timing of pivot is
    important to get the desired results. Startups can take the advice of their
    accelerators or other experts to identify their pivot strategy<\/p>\n","protected":false},"excerpt":{"rendered":"

    Few people know that YouTube was created as a dating site where users couldpost videos to describe their ideal partner. The original concept was, however,not received well and the company\u2019s founders Steven Chen and Jawed Karimdecided to pivot. YouTube\u2019s pivot to allow users to host all kinds of videos wassuccessful and made the platform a […]<\/p>\n","protected":false},"author":1,"featured_media":1528,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[640],"tags":[98,130,289,47,290],"class_list":{"0":"post-1505","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-founders-corner","8":"tag-business","9":"tag-ecommerce","10":"tag-start-up-pivot","11":"tag-startup","12":"tag-startup-ecosystem"},"yoast_head":"\nWhy and When Should a Startup Pivot? - Founderlabs<\/title>\n<meta name=\"description\" content=\"Pivoting refers to a company or a business changing its original business model or product or offerings to find success.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.founderlabs.in\/?p=1505\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why and When Should a Startup Pivot?\" \/>\n<meta property=\"og:description\" content=\"Pivoting refers to a company or a business changing its original business model orproduct or offerings to find success\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.founderlabs.in\/?p=1505\" \/>\n<meta property=\"og:site_name\" content=\"Founderlabs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/founderlabsindia\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-24T06:55:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.founderlabs.in\/wp-content\/uploads\/2023\/06\/62084666-b344-4371-9ec8-342a2a97cd8e.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"687\" \/>\n\t<meta property=\"og:image:height\" content=\"455\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Why and When Should a Startup Pivot?\" \/>\n<meta name=\"twitter:description\" content=\"Pivoting refers to a company or a business changing its original business model or product or offerings to find success.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.founderlabs.in\/wp-content\/uploads\/2023\/06\/62084666-b344-4371-9ec8-342a2a97cd8e.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@founderlabs_ind\" \/>\n<meta name=\"twitter:site\" content=\"@founderlabs_ind\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.founderlabs.in\\\/?p=1505#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.founderlabs.in\\\/?p=1505\"},\"author\":{\"name\":\"Editor\",\"@id\":\"https:\\\/\\\/www.founderlabs.in\\\/#\\\/schema\\\/person\\\/cb4a406b1f3e4fdc2d31bb540a9eb098\"},\"headline\":\"Why and When Should a Startup Pivot?\",\"datePublished\":\"2023-06-24T06:55:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.founderlabs.in\\\/?p=1505\"},\"wordCount\":702,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.founderlabs.in\\\/?p=1505#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.founderlabs.in\\\/wp-content\\\/uploads\\\/2023\\\/06\\\/62084666-b344-4371-9ec8-342a2a97cd8e.jpg\",\"keywords\":[\"business\",\"ecommerce\",\"Start-up pivot\",\"startup\",\"startup ecosystem\"],\"articleSection\":[\"Founder's Conversations\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.founderlabs.in\\\/?p=1505#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.founderlabs.in\\\/?p=1505\",\"url\":\"https:\\\/\\\/www.founderlabs.in\\\/?p=1505\",\"name\":\"Why and When Should a Startup Pivot? 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