Regarding startups, the term “pivot” gets thrown around a lot. But what does it really mean to pivot your business, and when is the right time to do it? Before taking a deep dive into the process of pivoting, let’s understand the types of pivots.

A pivot is a structural change a startup makes to its business model or product. This can be in response to feedback from customers, changes in the market, or new insights from the team. A pivot is not a minor change; it’s a fundamental shift in how the business operates.

Types of Pivots

There are two types of pivots: radical and incremental. A radical pivot is a complete change in direction, while an incremental pivot is a slight adjustment. Two kinds of pivots can be successful, but each has its own challenges.

Radical pivots are riskier because they require a complete rethinking of the business. But they can also be more rewarding if they lead to breakthroughs in how the business operates. Incremental pivots are less risky but can be more challenging to execute because they require making small changes while still keeping the core of the business intact.

The decision of whether to pivot or not should be based on data and customer feedback. For example, if there’s evidence that the current trajectory of the business isn’t working, then it might be time to consider a pivot. But if things are going well, then it might be best to stick with the current course and continue growing organically.

Process of Pivoting

The process of pivoting starts with research and data analysis. Once the team has identified an opportunity or issue that could be addressed by a pivot, they should create a hypothesis and test it using customer feedback. If the hypothesis proves to be valid, then the team can begin to develop a plan of action for implementing the pivot. During this process, the team needs to remain agile and open to change as new information is uncovered during testing.

Once the pivot is implemented, measuring its success and adjusting as needed is essential. Pivots are often iterative processes, so there may be several rounds of testing before a successful outcome is seen.

Pivoting can be a powerful tool for startups looking to make changes quickly in order to stay competitive in their markets. But it’s important to remember that pivots come with risks and should only do when absolutely necessary.

Analysing the Results of Your Pivot

After you’ve made a pivot, it’s important to analyse the results to see if it was successful. There are a few key metrics you can look at to determine this:

• Number of new customers or users: This is perhaps the most important metric to track. If you’re not seeing an increase in the number of new customers or users, likely, your pivot wasn’t successful.
• Retention rate: Another key metric to track is retention rate. This will help you see how many of your new customers or users are sticking around. If you’re seeing a high churn rate, it could be an indication that your startup pivot didn’t work.
• Engagement: Another metric worth tracking is engagement. This can help you see how engaged your new customers or users are with your product or service. If you’re seeing a decrease in engagement, it’s possible that your pivot didn’t quite hit the mark.

By tracking these key metrics, you’ll be able to get a good idea of whether or not your pivot was successful. Of course, if you’re not seeing the results you were hoping for, don’t be afraid to try something else!