Embracing The Pivot In A Startup

One of the basic tenets of the lean startup methodology is learning to pivot, aligned with the actual marketplace demand for solutions, and a product or service’s ability to match that need successfully. In 2010, EditMe went from a wiki platform, to website CMS for online communities, followed by transforming into an internal collaboration software. Basically, the original idea morphed and ‘pivoted’ continually, growing with each iteration, and becoming a strong case that reflected the importance and impact of lean startup methodologies. 

Along with Matt Wiseley, I gave a case study presentation to the Lean Startup Circle Boston on how we have tried to apply the concepts of Customer Development and Lean Startups to our existing business. However, we do not have all the answers on what makes a successful pivot for a startup, and if you watch the video below you will see that we got a lot of great help and advice from John Prendergast, the LSC Boston organizer and the people in attendance.

Why Pivot? 

Under the umbrella of Lean startup methodologies, the principle of pivoting plays an important role. Pivoting simply means shifting. This shift could come in varied forms, most typically, with consideration to a startup, it refers to changing the focus on the key product that the startup is offering. However, it can also mean shifting to a new target audience segment, or shifting to a different business model, or even shifting from a core marketing idea. 

As put by Eric Ries, the man behind the lean startup methodologies, pivoting is about maintaining one core aspect about your business, while changing others. For instance, if you wish to keep your core product, you must pivot your business model or target audience to crack the market barriers. 

Embracing pivot becomes a challenge for several startups and entrepreneurs, for one key reason- developing an attachment with the work they have done. Whether it is getting attached to the product so much that one refuses to iterate it or pivot from it despite there not being a real market for it, or being stuck to a specific audience segment, or a business model, it goes on to present a great stress because the product continues to fail. 

EditMe’s journey is a prime example that for building a successful startup, it is critical to let go of any attachment, accept and embrace the idea of pivot, and understand that it is not a one-time event. Rather, pivot is a continuous process where the core idea is to experiment, learn, and adapt to the changing market demands and dynamics. With every iteration of its original product, EditMe got closer to identifying what it was exactly that customers were looking for, and what they actually needed. This eventually allowed the company to advance and create something that was of real value. 

What Does This Teach Entrepreneurs? 

EditMe’s journey is a shining example and a lesson to draw inspiration from itself. Some of the key lessons that can be derived from it include the following: 

• Experimentation is the key to Success: Entrepreneurs, whether young or seasoned, may find it challenging to understand that experimentation is important for growth, and is an essential element of Pivot. From experimenting with varied iterations of the product to trying out unexplored pricing models, business models, or even tapping into new customer markets, experimentation is vital, and non-negotiable. 

• Pivoting Does Not Equal Failure: One of the things most entrepreneurs fail to understand is that pivoting does not mean that your idea or startup has failed. It is simply changing one’s perspective in order to crack the code for presenting your products or services to the masses in a manner that proves to be valuable for them. If you do not pivot, there is no scope for thriving in today’s highly competitive world of startups. Consumer needs change, and so is there the need for effecting change in the product. 

• Seeking Feedback Is Vital: Pivoting depends largely on gathering feedback, analyzing it, and then introducing changes. If you do not get feedback, how will you learn what it is that the market is looking for in a product, and how will you pivot without having this information? Feedback will help you achieve success in your pivoting efforts. 

Learning 

From the journey of EditMe, we understand the critical role that pivoting makes for a startup, and why pivoting is so essential for building any successful startup. It is a key strategy for any startup that is navigating the complex path of uncertainty in order to develop something of assured value for the customer, that translates into a successful product for the company.