Pivot

What Does "Pivot" Mean?

Think of a pivot like the centre of a spinning wheel, the point where everything turns. As a noun, a pivot is that central point. As a verb, to pivot means to turn or change direction around that point.

Imagine you’re holding a spinning top: the spot where it touches the table is the pivot. You can twist or shift without moving away from that spot. In business or life, pivoting means making a change or adjustment while still staying connected to your core.

If you picture a simple diagram, imagine an arrow swinging around a dot at its base — that dot is the pivot, and the arrow shows the direction change.

What Is a Pivot in Business and Startups?

In the startup world, a pivot is a strategic shift—basically, a course correction to help your business survive and thrive. It means changing some fundamental part of your business, like your product, target audience, revenue model, or tech approach, in response to real-world feedback or performance.

Think of it like steering a ship. If you're headed into stormy waters (aka poor sales, low engagement, or bad market fit), you don’t abandon ship, you adjust your direction. That’s pivoting.

Pivots can be small (like tweaking a feature) or major (like turning a social media app into a job search platform). The key is that you're staying agile, learning from users, and responding to what the market actually wants, not just what you thought it wanted.

Famous example? Instagram started as a check-in app called Burbn before pivoting to focus solely on photo sharing. That pivot was game-changing.

Types Of Pivot

Startups can pivot in various ways to adapt to market conditions or refine their business model. Some common types of startup pivots include:

Product Pivot: A product pivot involves a significant overhaul of a startup's product or service, aiming to better match market demands or address customer needs more effectively. 

Customer Segment Pivot: Shifting focus from one customer segment to another that might be more profitable or receptive to the product.

Platform Pivot: Changing the underlying technology or platform on which the product is built to enhance performance or cater to new needs.

Business Model Pivot: Altering the revenue model, pricing strategy, or distribution channels to create a more sustainable and profitable approach.

How to Know If You Should Pivot

Thinking about pivoting your business? It’s kind of like deciding when to change lanes on a busy highway—you want to know when it’s time to switch things up to keep moving forward smoothly.

Here’s a handy checklist to help you spot those “pivot moments”:

• Your product feels like it’s stuck in neutral — no matter how hard you try, it’s not catching on.
• Money’s getting tight, and the cash flow just isn’t cutting it.
• The market or technology suddenly takes a turn, and your business feels a little out of sync.
• Your customers’ needs have changed, but your product hasn’t caught up yet.
• Growth is slowing down or even sliding backwards.
• Your competitors seem to be speeding ahead while you’re stuck at the starting line.
• Your team’s losing steam and confidence in the current game plan.
• You spot a fresh idea or new opportunity that feels like a better fit for your strengths.

Here’s what one entrepreneur once said: “Pivoting is not the end of the disruption process, but the beginning of the next leg of your journey.” If you’re nodding along to a few of these, it might just be time to make that turn and pivot!

How to Pivot Effectively

Pivoting isn’t about throwing everything out the window—it’s about making smart, strategic shifts to get your business back on the growth path. Here’s how to do it step by step:

1. Assess the Need 

Look at the data, talk to customers, and be honest—is your current model working? Tip: Don’t rely on gut feelings alone. Back it up with real feedback.

2. Define Clear Goals 

What does success look like post-pivot? Set measurable goals (like revenue, users, or engagement). Caution: Vague goals lead to vague results.

3. Identify What Needs to Change 

Is it your product? Audience? Revenue model? Be specific about what’s getting the pivot treatment. Tip: Don’t fix what’s not broken—focus only on what’s holding you back.

4. Build a Plan 

Map out timelines, budgets, and responsibilities. Know who’s doing what and when. 

Tip: Over-plan, then simplify. Clarity beats complexity.

5. Test the Waters 

Use an MVP (minimum viable product) or small rollout to validate your new direction. 

Caution: Don’t scale until you’ve tested and learned.

6. Communicate with Your Team 

Bring your team into the “why” behind the pivot. Align them with the vision and plan. 

Tip: A motivated team makes execution smoother.

7. Loop in Customers 

Be transparent about the changes and ask for feedback early and often. 

Tip: Customers appreciate honesty, and their input can sharpen your pivot.

8. Execute and Monitor 

Launch the pivot, track key metrics, and be ready to tweak things as you go.

Caution: Stay flexible, pivots often need mini-pivots to perfect.

What Happens If You Don’t Pivot?

Sticking stubbornly to the same path in a fast-changing market can be risky business. When a company refuses to adapt, it risks falling behind, losing customers, revenue, and relevance. Ignoring shifts in customer needs or market trends often leads to stagnation and missed growth opportunities. 

A classic example is Blockbuster, which failed to pivot to online streaming while Netflix embraced the change, ultimately leading to Blockbuster’s downfall. Without pivoting, businesses struggle to stay competitive and innovate, making it harder to survive long term. So, while change can be scary, resisting it can be even scarier for your business’s future.

Common Misconceptions About Pivoting

Myth 1: Pivoting does not mean your original idea failed. 

Fact: Pivoting is about adapting, not admitting defeat. It's a smart strategy to remain relevant.

Myth 2: Pivoting happens overnight. 

Fact: It usually takes careful thought, testing, and time to shift direction well.

Myth 3: Pivoting means changing everything. 

Fact: Often, it’s a small shift in strategy, not a complete overhaul.

Myth 4: Only startups need to pivot. 

Fact: Companies of all sizes and industries pivot to grow and survive.

Frequently Asked Questions (FAQs)

What is a pivot in startups?

It’s when a startup changes direction or tweaks its business model to find better success, like turning a ship’s wheel to avoid rough waters.

Why is pivot important?

Because staying flexible lets companies adjust to new info, customer needs, or market changes, boosting their chance to thrive.

How to pivot strategy?

Look at what’s working, gather feedback, and try small changes. Test, learn, and adjust until you find a better path.

How do you calculate pivot?

It’s less about math and more about insights. You measure success by how well your new direction meets goals compared to before.

Why do companies need to pivot?

Markets evolve, customers change, and competition heats up. Pivoting helps businesses stay relevant and competitive.