What is a Pivot (and What It’s Not)?

A pivot is not giving up.

It’s a strategic shift in your business model, product, or audience to adapt to what’s actually working.

Famous pivots:

• Slack started as a gaming company but pivoted into workplace communication.

• Netflix began as a DVD rental business before shifting to streaming.

• Instagram was originally a check-in app before focusing purely on photo sharing.

These companies didn’t quit.

They evolved.

And that’s the key.

How to Know If You Need to Pivot

A pivot isn’t something you do on a whim. It should be based on clear signals. Here are the biggest signs that your startup needs to change direction:

1. Your Market is Not Responding

If you’re struggling to get customers despite trying multiple approaches, it’s a sign that demand might not be there.

Example: You built a B2B SaaS tool, but after months of outreach, companies aren’t biting. Maybe the problem isn’t painful enough, or they don’t see enough value in your solution.

2. Revenue is Stagnant or Nonexistent

If you’re not making money (or nowhere near sustainable revenue), something needs to change.

Example: I spent 11 months with barely $115 in revenue. That wasn’t from my core service but from ancillary work. That was a clear red flag.

3. A Competitor is Dominating the Space

If someone else is doing what you’re doing—but better, faster, and at a larger scale—it might be time to rethink your approach.

Example: I discovered my mentor was working on the same business model as me but with far more resources. Competing directly would’ve been a losing battle, so I pivoted.

4. You’re Losing Interest in the Business

If you wake up dreading your startup, that’s a bad sign. Passion fuels perseverance, and without it, you won’t have the energy to push through the hard times.

Example: My first idea looked lucrative, but I had no real passion for it. Selling it felt forced, and I struggled to sustain the effort.

5. Customers Love Part of Your Idea—But Not All of It

Sometimes, parts of your business work while others don’t. A pivot lets you double down on what’s working and drop what’s not.

Example: Maybe you built a marketplace, but only one side of the market is engaging. Instead of forcing both sides, you pivot to focus on the active group.

How to Pivot Without Starting Over

A pivot doesn’t mean throwing everything away. Here’s how to do it smartly:

1. Identify What’s Working

Not everything in your business is failing. Find the strengths—whether it’s a specific feature, customer segment, or marketing channel—and build around that.

2. Talk to Your Customers

Your best insights come from your users. What do they love? What do they wish was different? Let their feedback guide your pivot.

3. Experiment Before Going All In

Don’t risk everything on an untested pivot. Try a small-scale experiment first.

Example: If you’re switching from B2C to B2B, test with a few business clients before making a full transition.

4. Communicate with Stakeholders

If you have a team, investors, or customers, keep them informed. A well-managed pivot can keep people engaged and supportive.

5. Move Quickly and Decisively

Once you decide to pivot, execute fast. Prolonged indecision drains resources and morale.

YOUTUBE TREASURE

👉My Pick: How to Build the Future : Sam Altman