A pivot is a change in strategy by a startup that is aimed at improving its chances of success. Pivoting involves rethinking the core aspects of a startup’s business model, such as its target market, product offering, or revenue model.
The term “pivot” comes from the idea that a startup is like a door hinge, and can pivot in a new direction to open up new opportunities. Pivoting can be a difficult and risky decision, but it is often necessary for startups that have not achieved the desired results with their initial strategy.
There are several common reasons for a startup to pivot, including:
- Unmet Market Demand: A startup may discover that its target market is not as large or receptive as it had originally thought. In this case, the startup may pivot to a new market segment or product offering.
- Inefficient Business Model: A startup may realize that its revenue model is not working as well as it had hoped, and may pivot to a new pricing strategy or monetization method.
- Competition: A startup may encounter increased competition in its market, and may pivot to differentiate itself or focus on a niche market segment.
- New Opportunities: A startup may discover new opportunities that are more promising than its original strategy, and may pivot to pursue these new opportunities.
In conclusion, a pivot is a change in strategy by a startup that is aimed at improving its chances of success. Pivoting can be a difficult and risky decision, but it is often necessary for startups that have not achieved the desired results with their initial strategy. Startups should continuously evaluate their strategy and be open to pivoting when necessary, in order to increase their chances of success in the long run.
