A startup pivot occurs when a company shifts its business strategy to accommodate changes in its industry, customer preferences, or any other factor that impacts its bottom line. It’s essentially the process of a startup translating direct or indirect feedback into a change in its business model.
Examples of pivoting a startup are
1. Turning one feature of a product into the product itself, resulting in a simpler, more streamlined offering
2. Product is turned into a feature of a larger suite of features as part of another product
3. Focusing on a different set of customers by positioning a company into a new market or vertical
4. Changing a platform, say, from an app to software or vice versa
5. Employing a new revenue model to increase monetization
6. Using technology to build a product, often to cut down on manufacturing costs or create a more reliable product
Therefore it is commonly seen that sometimes startups tend to succeed on a completely different path than they had initially embarked on. Often, even their products change drastically.
Being dynamic lies at the heart of being a successful startup. One needs to adapt to changes and seize opportunities to maximise profit. This means having to constantly review one’s goals and objectives. Goals tend to change over time and so do the methods of achieving them.
If a startup wishes to change its business objectives it can do by following these steps
1. Test your Ideas
A startup should prepare a new business plan that includes target users, challenges and revenue sources. It should test its new ideas the results would determine the alterations that can be made in the idea. For example — if a startup wishes to target a new market including virtual one so it needs to do a lot of experimentation.
2. Review your goals periodically
Reviewing goals comprises of deciding where to spend money, or which new strategy needs to be adopted. A startup should review its strategies periodically as it helps in cutting losses and opportunity costs.
3. Set goals
Keeping in mind that financial resources that a startup possess it should set up its goals. Goals need to be realistic and should be made after proper analysis.
4. Ensure Flexibility
Evaluating changes in output can help the startup to focus on the gaps and determine where actually the changes can be made. Therefore it is important to be open and flexible and constantly revising goals and responsibilities.
Setting goals too low or too high can both be disadvantageous. A startup usually has innovative minds and high spirits. It is important to keep the culture of innovation alive. Revisiting goals from time-to-time, thus, helps maintain a competitive edge.