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Pivoting is common in the startup world. At the beginning of the pandemic, many founders were forced to change business models because circumstances and the market changed drastically. Those who adapted to the new circumstances of the market profited significantly.

Pivoting, which in the startup environment refers to switching to a new strategy, is frequently misunderstood to mean fundamentally altering the entire business. This, however, is not always the case. Many times, a business only needs to adjust one significant component of itself in order to solve one major issue.

Below are a few instances of pivoting that you might not have previously assumed to be a pivot:

  • Transforming a single feature of a product into the product itself to create a more straightforward and efficient offering.
  • The inverse of the previous point, where one product is transformed into a feature of a more comprehensive suite of features as part of another product, is also referred to as a pivot.
  • Positioning a business in a new market or vertical in order to concentrate on a different group of clients
  • Switching from mobile to web development, or vice versa. 
  • Using a new business model to boost monetization. For instance, a business may discover that an ad-based revenue model is more lucrative than freemium.
  • Constructing a product with different technologies, frequently to reduce manufacturing costs or produce a more durable product.

When should you think about pivoting?

Many tech giants, including Facebook, Instagram, and Slack, have had enormous success after pivoting. The present generation of new-age founders have come to believe that startup pivoting could be a terrific formula for success for them as well.

But when is the right time to pivot?

You can use the following information to decide when to pivot:

  • Only one feature really sticks out about your product or business.
  • The market’s reaction didn’t match what you expected.
  • Your rivals consistently exceed you.
  • The company’s financial viability is uncertain.

Only one feature really sticks out about your product or business.

Your service, product, or business model may have a single feature that functions noticeably better than the others. If and when this occurs, consider whether you could pivot to only support that one component.

One of the best methods to increase productivity is to cut out the excess from your business operations. The secret to getting thin is to lose this small but functionally significant weight. As a result, the money and time you put into your business may provide greater returns.

Consider pivoting and building around a single aspect of your service or product that your consumers use or value more than the rest.

The market’s reaction did not match your expectations

It’s wonderful to think about delivering your service or product to the market. However, there are situations when you might underestimate the size of the issue you are trying to solve. Alternately, it’s possible that your target market is unwilling to pay what you’re asking for. Or you have one of the 23 additional conditions that contribute to low consumer traction.

A startup pivot is usually necessary when your service or product doesn’t connect with the market the way you expected it to. In some way, you must alter your business strategy in order to offer your target market more value. Make an effort to attract customers’ attention in your product.

That might entail concentrating on techniques like (but not restricted to):

  • concentrating on previously unconsidered product characteristics
  • shifting your market focus
  • reducing the price
  • Making consumers perceive your company in a fresh (and better) light is your final goal.

Your rivals consistently exceed you.

You’re going to face severe competition every day in the startup industry’s environment. In this competitive environment, if any of these two occurrences occur, you should be aware that it’s time for a startup pivot:

You’re being forced into a market niche that you don’t like by other businesses, which are also monopolizing your area by stealing your customers.

In this instance, you’ll need to fundamentally change how your business operates. In fact, you might need to entirely change your sales technique or even make changes to your product (or service).

The company’s financial viability is uncertain.

No matter how much it may mean to you personally, your firm can only grow as far as its financial resources allow. This suggests that if the business is losing money, you’ll need to master the challenging art of letting go of the idea or methods behind it and switching to something more financially viable.

You must evaluate everything to decide:

  • Which elements are you financially struggling with?
  • What you can eliminate, and where you might go from there with the resources you still have available
  • You can choose a reference point for your startup’s pivot using the data above.

However difficult and demanding pivoting may be, accept it as an integral part of the startup development journey.  You must be aware of internal issues as well as market forces in order to recognize when a radical shift is required. And you must act quickly.

If you are considering pivoting your startup and have questions or doubts about your software development, feel free to contact us. We can help you get through pivoting as painlessly as possible. Our experienced software engineers are here to help you create seamless digital experiences that will set you apart from others on the market.