Pivoting your startup: what it is and how to do it successfully

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In previous articles we have discussed startups in depth , a business model that is characterized by being very volatile. It is normal for many of these companies to succeed in pivoting : in this post we discover what this process consists of and how to achieve it successfully .

What is pivoting a startup?
Pivoting in the context of a startup means making a significant change in the direction of the company, whether in its business model, its product, its target market or any other key aspect.

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It is often carried out when it is detected that the netherlands phone number lead original approach is not working or that there are more promising opportunities in another direction . It is something that at least 70% of startups do during their life cycle, as indicated in the Startup Genome Report studies in 2011 .

A famous example of a pivot is X, formerly known as Twitter , which began as a podcasting platform called Odeo before morphing into the microblogging social network we know today.

Signs that your startup needs to pivot
The most relevant factor that may be indicating that you need to pivot your startup is the lack of traction in your business model . If after multiple attempts you are unable to attract clients or users or the market is not responding as you expected, you probably need to pivot.

You may discover that the market you are targeting is not big enough to sustain your business , or that certain changes in the competitive landscape where new rivals with better technologies make your idea have no future. Or simply your business model does not generate sustainable income, so you have to pivot the startup to make it economically viable.

If your minimum viable product or MVP is not getting the right response from your customers, you will need to look for new solutions that will appeal more to the market . It doesn't matter how much you "feel in love" with the product: if it's not viable, it's better to look for an alternative .

How to successfully pivot your startup
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Now that you know what pivoting a startup means and when it is necessary , let's look at the keys to effectively changing your business model. What is essential is to listen carefully to customers and users . Their comments, complaints and suggestions are the most reliable source of information about what is failing and what is not.

On the other hand, one of the biggest obstacles to pivoting is the emotional attachment to the original idea . Founders often invest time, money, and effort into their initial vision, which can make it difficult to accept that it's not working.

But you must remember that flexibility is essential to survive in the startup ecosystem, and if you don't adapt, your company will eventually disappear. That's why it's always better to give a new approach to the business by pivoting your startup .

Remember that the Agile methodology is essential for any startup , as it implements fast and flexible adjustments . You must maintain an agile structure in your team and your operation, so that you can implement changes quickly without major disruptions. We recommend this guide on Lean Startup , which focuses on building, measuring and learning.

Finally, pivoting your startup can create uncertainty for your staff, investors, and customers . For this reason, it is advisable to explain the reasons for this change and how it will affect stakeholders so that everyone is informed and aligned with the new idea.

At MASMOVIL NEGOCIOS we hope to have helped you understand what pivoting a startup means and how to do it effectively to improve your business model.