When to pivot and when to focus?

    • Sometimes it is right to do a radical change but this can also mean u give up to early instead of staying focussed. Is there help to know what to do?
      asked by Michael Hartke·6 months ago

    Answers

    • 1
      Jonas MielckBest answer

      When to pivot: Growth rates of e.g. revenue or active users are a good instrument. If you want to build a scalable startup and high monthly growth rates like 20 percent cannot be achieved, even if you spend a lot of effort to force a solution into the market, then you are most likely doing something wrong. If you cannot generate any more ideas how to modify your solution to achieve fast growth you should pivot and start working on a new problem.


      When to focus: If your users' interaction with your solution is extremely high and they even start to refer other users to you, this is a very good sign to continue working on the solution. You then managed to build something that your users really love.


      6 months ago
    • 1
      Most times startups take too long to pivot. As a startup, you always have to find the best direction to run in. If the current direction isn't working; or the prospect of success is not right, you should pivot. Especially in the early days of a startup it's normal that you change your idea / the version of your product often and that you learn from the early users and iterate or even do something completely new. It should be lightweight and fast changes. Thats the way how you start an innovative company and you should't think too much about it. If you are already working on an idea for a longer time and maybe have some small traction it's harder to admit to yourself that maybe you should pivot. But if your product is not working out the way you hoped, you can analyse it more with some kind of "opportunity-cost". Is this version of the product giving you the prospect of success you want or is there maybe another idea/product that gives you a bigger opportunity for the time you invest. If this is the case maybe you should pivot. In a Y-Combinator Talk YC-Partner Dalton Caldwell gave some good reasons why to pivot: 1. you hate to work on it | 2. It's not growing | 3. You're not a good fit to be working on that idea | 4. You are relying on an external factor outside of your control | 5. You're out of ideas how to make your idea work. ...He also talks about why startup often take too long to pivot. You can also watch the full video here: https://youtu.be/8pNxKX1SUGE
      6 months ago

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