Why Pivoting isn’t Failure in Startups
In the world of startups, pivoting is often viewed as a dirty word. It’s seen as a sign of failure, a lack of direction, or a desperate attempt to salvage a sinking ship. But, in reality, pivoting is not only a normal part of the startup journey, but it’s also a key component of successful entrepreneurship.
In the lean startup methodology, pivoting is not a sign of weakness, but rather a sign of discipline, adaptability, and a willingness to learn. It’s a recognition that the initial idea or strategy wasn’t working, and that it’s time to make a change.
The notion that pivoting is a sign of failure stems from the assumption that entrepreneurs should have a clear plan and stick to it, no matter what. This is a flawed approach, as it ignores the fact that startups are inherently uncertain and that the market can change overnight.
In reality, pivoting is a natural part of the startup process. In fact, many successful startups have pivoted multiple times before finding their footing. For example, Airbnb was originally a service called “Airbed & Breakfast,” which allowed people to rent out their spare bedrooms. The company pivoted to focus on home-sharing, and the rest is history.
So, why do so many startups fear pivoting? One reason is that it requires a willingness to admit defeat and start over. This can be a difficult pill to swallow, especially for entrepreneurs who have poured their heart and soul into their idea.
Another reason is that pivoting can be a costly and time-consuming process. It requires a significant amount of resources, including time, money, and talent, to pivot and try again. This can be daunting for startups that are already operating on a shoestring budget.
However, the benefits of pivoting far outweigh the costs. When done correctly, pivoting can unlock traction that was previously blocked, allowing startups to scale and achieve their goals.
So, how can startups make the most of pivoting? Here are a few key takeaways:
1. Test and learn
Before making any major changes, startups should test and learn from their initial idea or strategy. This involves gathering feedback from customers, analyzing data, and making adjustments accordingly. By doing so, startups can identify what’s working and what’s not, and make informed decisions about whether to pivot.
2. Identify the problem
Startups should identify the problem that’s preventing them from moving forward. Is it a lack of traction? A misunderstanding of the market? A flawed business model? Once the problem is identified, startups can begin to develop a plan to address it.
3. Develop a new plan
Based on the insights gathered during testing and learning, startups should develop a new plan that addresses the identified problem. This may involve changing the product, service, or business model, or it may involve targeting a new audience or market.
4. Make an evidence-based decision
Before making any major changes, startups should make an evidence-based decision to pivot. This means gathering data and insights that support the decision, and having a clear understanding of the potential risks and rewards.
5. Execute the pivot
Once the decision to pivot has been made, startups should execute the plan quickly and decisively. This involves communicating the change to stakeholders, adjusting the business model, and making any necessary changes to the product or service.
6. Monitor and adjust
After the pivot has been executed, startups should monitor and adjust as needed. This involves gathering feedback from customers, analyzing data, and making further adjustments to the business model or product/service.
In conclusion, pivoting is not a sign of failure in startups. Rather, it’s a sign of discipline, adaptability, and a willingness to learn. By embracing pivoting, startups can unlock traction that was previously blocked, and achieve their goals. Remember, a pivot is not a failure, but rather a necessary step towards success.
Source: https://www.growthjockey.com/blogs/lean-startup-methodology
