A true entrepreneur is the one who knows when to switch, repurpose, or redirect the business.

Running a business or a startup means moving forward with a clear goal in mind, but without knowing exactly what obstacles or challenges might show up along the way. Each step requires learning and adjusting as you go.

Imagine a journey where you are not aware of the roadblocks or challenges ahead, and when you finally experience them, would you continue on the same route, knowing this might not take you to your destination, or you might not arrive on your expected time?

The most logical decision at this time for a person would be PIVOTING.

Now, imagine all of this in a startup context, a decision-maker might not be aware of the bottlenecks or roadblocks they might come across as they move forward with their strategies, but whenever they are aware of them. The first logical decision is to pivot by changing strategies, platforms, or maybe entire models.

In this blog, we’ll explore what it means to pivot in startups, when is the right time to do it, and how to do it right.

What Does It Mean to Pivot in Startups?

A startup pivot refers to changing or redirecting business strategies to meet customer expectations and achieve better outcomes for the business. This shift in the strategy can be anything from changing the entire business model to switching the target towards a completely different audience.

Pivoting in startups does not mean giving up on the whole idea of your business and switching to a different one; it simply means learning from feedback and reviews extracted from the customers or market and then implementing better strategies based on what you’ve learned.

An entrepreneur, Eric Ries, introduced the concept of pivoting business strategy in his book “The Lean Startup”, in which he called it a structured course correction based on the learning from customers and the market. Eric mentioned that in the world of startups, change is constant, and when you are not getting the expected outcomes from your current strategies, then it’s time to pivot. The insights regarding whether your current plan is working or not can be gained through your MVP (Minimum Viable Product).

Cues for Pivoting in Startups

The concept of a pivot startup might be a little overwhelming for entrepreneurs or decision-makers. They can be a little skeptical about it and try to find solutions without redirecting their current plan and strategies. Redirecting can involve changes in strategies, product, or target market, and as Eric Ries said, pivoting is not just a random change when things get tough; it is a big change.

Businesses can look for signs to be sure whether they need to implement a pivoting business strategy or not. Here are some cues businesses can consider when deciding:

1. Your Product Didn’t Perform Well:

As a startup, there are high chances that your product fails to gain traction in the market, which means the product didn’t perform as you expected it to. There is no demand or interest shown from your target customers.

If your startup is struggling with reaching the customers and making the right impact, then it is an indication that pivot. In the case of a product not performing well, pivoting can mean changing the pricing strategy, usability, or developing clear messaging.

2. No Growth:

There are cases where businesses experience a good reach after the launch, maximum customers are attracted, but it slows down over time. Despite sustained efforts, different marketing tactics, the business sees no growth. This indicates that the current business approach has limited scalability, and the business might need to change its core plan and go forward with a pivot startup.

3. Market Changes:

The market keeps evolving with time, and startups may experience a change in the market dynamics after their launch or even close to the growth period. If the customer preferences change, it might cause a product or service to be less relevant for the customer.
For example, an ice cream brand launches and gains huge traction, but suddenly customer preferences change to healthy eating, and sugar-free ice creams begin to gain customer interest. If this switch in the market makes a bad impact on the business, and you are not able to sell your product, then it might be the right time to pivot and change your product development roadmap towards a healthier version of ice cream.

4. Competitive Pressure:

There are changes that new competitors enter the market with a better quality of the product, or existing businesses change their strategy and gain more interest from customers than you. This is a sign of a pivot in startups, as changing strategies, niche, or moving focus towards a different audience will help the business acquire more customers.

5. Customer Feedback:

“The customer is always right”, quite literally!

If the customer feedback or reviews are poor for your product or service, and it does not improve, this means that it is time to take action. It doesn’t matter if the reviews are on your MVP or a fully-fledged product; businesses need to make changes as per the requirements and expectations of the customers to succeed.

6. Conflict or Misalignment:

Sometimes there are different opinions in the teams regarding the strategies, plans, etc, which might create conflicts or misalignment. If teams are no longer aligned on one goal, vision, and morale of the teams is down. A startup pivot might be the best decision to redirect and refocus on the core vision.

Every startup shows signs when it is time to pivot. Always look for these main signs if you can’t decide whether to pivot or not.

Types of Pivot in Startups

There are several types of pivots in startups. Look at the main ones:

1. Pivoting in the Existing Market

This means staying in the same industry or market but changing the way you operate. It can be about changing your product features, adjusting pricing, or focusing on a different customer segment within the same market.
For example, a food delivery startup may realize people prefer healthier options. Instead of changing the market, the startup can pivot its menu offerings to healthier meals while still targeting the same audience.

2. Market Pivot

Sometimes the product is good, but the audience is wrong. In this case, a market pivot is about targeting a completely different customer segment that will value your product more.

Think of an app that was initially designed for students but ends up being more useful for working professionals. The product doesn’t change much, but the audience does.

3. Product Pivot

A product pivot happens when the existing product is not solving the right problem or not meeting customer expectations. Startups then switch to a new product idea or evolve the existing one into something more relevant.

For example, a messaging app that doesn’t take off could pivot into a project management tool using the same technology.

4. Business Model Pivot

This type of pivot involves changing the way you make money. A startup might shift from offering free services to subscription-based plans, or from selling products to offering them on a rental basis.

If your current revenue stream is not sustainable, this type of pivot ensures the business can survive and scale.

5. Technology Pivot

Startups may find that the technology they are using is not efficient, scalable, or cost-effective. A technology pivot involves changing the tech stack, platform, or delivery method to create a better product.

For example, moving from a web-based platform to a mobile-first approach because customers are more active on mobile.

6. Customer Need Pivot

Sometimes, after gathering enough customer feedback, startups realize that the problem they are solving is not the one that really matters to their audience. In this case, they pivot to address a more pressing customer need.

For example, an app made for event planning could pivot to focus on group expense tracking if that’s what users find more useful.

7. Vision Pivot

This is a bigger and more difficult pivot. It involves changing the overall direction and vision of the startup. When the original mission no longer aligns with reality or market needs, the startup may redefine its purpose.

It is rare but sometimes necessary when everything else has been tried and failed to bring results.

Best Strategies for a Successful Pivot in Startups

Pivoting is not just about making a change; it’s also about making the right change. A rushed or unplanned pivot can hurt the business more than help it. To make sure your pivot works in your favor, here are some of the best strategies to follow:

1. Listen to Your Customers

Your customers are your biggest guide. Always pay attention to their feedback, reviews, and behavior. If they are telling you what’s not working, use that information to make your pivot more targeted and useful.

2. Use Data, Not Just Assumptions

Don’t pivot just because you “feel” it’s the right time. Back your decision with data, sales reports, usage patterns, market research, and customer insights. Data will help you see clearly where the problem lies and where the opportunity is.

3. Keep Your Core Vision Intact

While pivoting, don’t lose track of the bigger picture. The core purpose of your startup, the reason you started, should remain. A pivot should adjust your path, not erase your identity.

4. Test Before You Go All In

Instead of changing everything at once, test your pivot on a smaller scale. For example, launch a new feature as a pilot or target a smaller customer group first. If it works, then expand. This way, you reduce risk and get faster insights.

5. Be Transparent With Your Team

Your team plays a huge role in making a pivot successful. Keep them informed, aligned, and motivated. When everyone understands the “why” behind the pivot, they are more likely to stay committed and push harder.

6. Keep Costs in Check

A pivot often requires investment in new tools, marketing, or technology. Be mindful of your resources and plan your spending carefully. The goal is to grow, not burn out your budget.

7. Stay Flexible and Open-Minded

A pivot itself is about change, so keep yourself open to more changes if needed. The first pivot may not give immediate results, and that’s okay. Stay flexible, learn quickly, and keep improving.

8. Communicate With Your Stakeholders

Investors, partners, and even early customers should know about your pivot. Good communication builds trust and makes it easier for others to support you during the transition.

What to Avoid in a Startup Pivot

While pivoting can save a startup and open new opportunities, not every pivot works out. Many fail because of common mistakes that could have been avoided. Here are the things you should stay away from:

1. Pivoting Without a Clear Reason

Don’t pivot just because growth feels slow or things seem tough. Every pivot should be based on solid reasons, customer feedback, market data, or clear evidence that your current path isn’t working.

2. Ignoring the Core Vision

If a pivot takes you too far away from your original vision or purpose, it can confuse your team, customers, and investors. Always make sure the pivot still connects with your larger mission.

3. Changing Everything at Once

Avoid flipping the entire business model, product, and audience in one go. Too many changes at once can create chaos and make it impossible to track what’s actually working.

4. Not Validating the Pivot

Skipping the testing phase is a big mistake. If you don’t validate your new direction with a pilot, MVP, or market test, you risk wasting resources on something that might fail again.

5. Overlooking Your Team

A pivot impacts everyone in the company. If you don’t involve your team or communicate the reasons clearly, morale can drop, and execution will suffer.

6. Ignoring Your Current Customers

When pivoting, don’t forget the customers who already trust you. A sudden shift without considering their needs can result in losing your existing base, which is often the foundation of your growth.

7. Burning Too Many Resources

Some startups pour all their money and time into the pivot without a backup plan. A smart pivot is calculated and keeps costs in control, so you can survive if the first attempt doesn’t work out.

Real-World Example of a Pivot Startup

The idea of pivoting isn’t just theory; it’s something many of the world’s most successful companies have done. Some of today’s top platforms started with completely different goals before they found the right path. Let’s look at a few famous examples:

1. YouTube

YouTube wasn’t always a video-sharing site. It started as a dating platform where people could upload videos of themselves talking about who they were looking to date. When that didn’t gain traction, the founders pivoted and allowed users to upload any kind of video. That shift turned YouTube into the biggest video-sharing platform in the world.

2. Twitter

Twitter began as a podcasting platform called Odeo. When Apple launched iTunes podcasting, Odeo lost its market almost overnight. The team pivoted and created a short messaging platform that allowed people to post quick updates. That new idea became Twitter, one of the most influential social networks of its time.

3. Instagram

Instagram started as an app called Burbn, which combined check-ins, photo sharing, and gamification. The app was too complicated, and users didn’t engage with most features. The founders noticed that people loved the photo-sharing part, so they pivoted and focused only on photos. That pivot gave birth to Instagram.

4. Slack

Slack grew out of a failed online game called Glitch. The game didn’t succeed, but the internal communication tool the team built to manage the project worked really well. The founders pivoted and turned that tool into Slack, which is now one of the most popular workplace communication platforms.

These examples show that even the biggest names in tech didn’t get it right the first time. What made them successful was the ability to recognize when to pivot, listen to their users, and move in a direction that worked better.

Don’t Be Afraid of Pivoting

Pivoting in startups does not mean that your business has failed, but it means that you are moving forward as the dynamics of the factors surrounding your business change.

If a business or startup knows when to switch, change, or redirect their strategies, this means that the business can easily adapt to change and take tough decisions before it’s too late.
Pivoting when it is necessary will save from wasting time, money, and strategy on a plan that is not going to work.

If your business is not gaining traction, not growing, or there are any signs of implementing the pivoting business strategy, then act on it as soon as possible, because pivoting does not mean failure.

How DigiTrends Leverages a Pivot in Startups

At DigiTrends, we work with startups and growing businesses to identify when and how a pivot can create real impact.

Our team studies market trends, customer behavior, and product performance to spot opportunities that others might miss. We guide decision-makers with data-driven insights and offer practical marketing and development strategies.

DigiTrends’ goal is to help businesses pivot with confidence, reduce risks, and move toward sustainable growth.