In today’s fast paced startup ecosystem, it’s normal to see new technologies emerging and market trends changing rapidly. To survive, startups must understand the importance of changing direction or adapting to new market conditions. By changing direction or pivoting, a startup can decide its fate, since it is an important step that often makes all the difference between success and failure.
Amongst the many startups that discovered success by pivoting include Yelp, which began its journey as an automated system for emailing recommendation to friends. Although the startup was able to raise initial funding, the idea did not take off. Later the company evolved to a fun online reviewing system that gives reviews and recommendations about businesses in your area.
The site now has over 50 Mn users a month, as well as 17 Mn reviewers globally.
Another example is that of Google-owned YouTube, which started as an online video dating site called “Tune In, Hook Up.” However, the company changed direction to become a simple video sharing company. It was later acquired by Google for a whopping $1.65 Bn.
There can be numerous reasons behind pivoting. While some companies might have to tweak their product offerings, others may have to completely scrap the idea behind their startup and start afresh.
Here are some signs that indicate its time for you to change course of your business:
Customers Don’t Like Your Product
One of the first clues would be if even after launching your product you fail to get good customer reviews or repeat orders. You may believe in your product and may be passionate about it, but if you are unable to generate enough consumer interest its time to move on, or else you won’t be able to sustain the business.