By angelica
According to Eric Ries, who first applied the term pivot to startups in his book “The Lean Startup” a pivot is defined as a change in strategy, without a change in vision.
A pivot should and does occur when a company shifts its business strategy to accommodate changes in the industry, customer preference, competitive landscape, or any factor that impacts the bottom line. Pivoting allows a company to translate direct or indirect feedback into a change to the business model.
The people who know me and have interacted with me professionally know that I am fanatic about testing of all business assumptions and of all aspects of a business model. A pivot will be applied after testing out an approach and receiving feedback.
When should you pivot? Pivoting is not a solution to all problems, not a panacea to all shortfalls. It should be considered when other options have been considered and excluded.
There are different types of pivot:
- Pivot in your business model
- Pivot in your existing market
- Pivot in the positioning of your product or service
For a startup, I strongly suggest the following steps:
- Align your goals with your business vision
- Test your product or service with a marketing first approach
- Consider new or known technologies
- Test your ideas with mentors and investors
A pivot has the ultimate goal of increasing profits, of positively impacting your bottom line. Remember that at the base of everything you do is the value you offer to your customers, the problem you solve for them. If when pivoting, you decide to change your target customer, you should test the problem, the solution, the business model. If you change the problem you are solving, you should test your target customer, your solution and your business model. If you are offering a new solution, test to ensure that you know and understand the problem and the target customer, so that the best business model can be applied. And if you are changing your business model, ensure that you have tested and understand your target customer and the problem you are solving.
When was the last time you tested your assumptions?
