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For entrepreneurs throughout the world, the promise of PivotTimely pivots has proven to be a turning point

Twitter changed its focus from an online audio podcast service to a social network. Slack changed its focus from a multiuser online gaming system called Glitch to a business chat program. Burbn, a location-based check-in service, was Instagram. They all went on to grow into multibillion dollar businesses.

The globe over, timely pivots have proven to be a turning point for startups. There is no shortage of motivational tales of businesses that adopted a pivot and succeeded. Even now, many startups fail to make the appropriate pivot at the right moment, which may have both saved and accelerated their growth.

Why do startups balk at changing course?

The two main reasons why startup founders hesitate to pivot are fear of failure and emotional commitment to the initial idea. “They worry about the hazards that could arise from changing their business model significantly. They can be worried about losing their current clientele, market share, or investment, according to We Founder Circle co-founder Gaurav VK Singhvi.

Additionally, founders devote a significant amount of time, energy, and money to their initial concept, making it challenging for many of them to accept a pivot. “Founders frequently struggle to let go of the intense attachment to their original concept. Then there are worries about harming investor confidence and reputation, according to Surya Mantha, managing partner of Unitus Ventures.

For startups, pivoting is essential to their existence. Still, occasionally they do not have a thorough grasp of the market. “The world is changing pretty quickly right now. Although markets or macro-environments are also changing, technology is the major driver of change. One such instance is the pandemic. However, pivoting requires a total revamp, which is not simple. Re-gearing the business model, altering the product, re-gearing the team, re-gearing the need for funding, and occasionally almost restarting,” said Padmaja Ruparel, co-founder of IAN and founding partner of IAN Fund. She added that pivoting is essentially founders’ “baptism by fire,” and those who survive are far more resilient to the future and can create a more substantial business for the long term.

Determining whether or not persistence will pay off is another challenge because entrepreneurship is sometimes associated with a “never give up” mentality. How does a founder realize that it is time to quit persevering and start constructing something different? “All startups must overcome initial hurdles, and many successful startups are the product of the founders’ sheer drive and perseverance. The founder of Winpe, Nupur Garg, remarked, “It is not easy.

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Ivy Chin, partner at Inflection Point Ventures, continued, “The other extreme is to be ensnared in the false consensus trap where entrepreneurs are projecting their own confidence in their product to potential customers and overestimating the acceptability, and success in the market.

Investors, in Garg’s opinion, have a big part to play in these scenarios. An experienced market grasp and a broad perspective on the opportunities and potential for the relevant tech, concept, or idea are two things that good investors bring to the table. In the crazed frenzy of establishing a start-up, “they are expected to be the voice of sanity, assisting founders in critically evaluating their lessons learned and paying attention to market feedback,” the expert explained.

Startups must maintain their agility and adaptability in the face of rapidly changing market realities. Timing is crucial, though. Knowing when to pivot is essential since delaying a choice can make problems worse and reduce prospects for advancement, according to Mantha.

A organized method of achieving the ideal product-market fit is pivoting. They can respond to changing client needs, preferences, or pain issues by making a quick pivot. “Most startups employ this as a growth hack successfully when they release the product or solution and continue to make adjustments based on consumer feedback. Sometimes this entails a total overhaul of the business model. However, some startups became so obsessed on their idea for a product or business strategy that they failed to adapt when the market provided good feedback. They eventually exhaust all available options and fail,” said Singhvi.

Overall, pivoting enables them to respond to shifting market circumstances, surmount obstacles, and grab any new possibilities that may have arisen after their initial launch. Co-founder of We Founder Circle Gaurav VK Singhvi also discusses the important factors to consider before making a successful pivot.

Before changing course, you should: 

• Conduct market study and analysis. Conduct extensive market research to pinpoint new trends, client requirements, and potential business prospects. Recognize the competitive landscape and evaluate if a pivot is feasible given the state of the market.

• Customer feedback: To better understand the needs, preferences, and expectations of both current and potential customers, gather feedback from both groups. Utilize this data to assess the success of a pivot and make sure it is in line with customer requirements.

• Resource evaluation: Determine what is needed in terms of resources, skills, and knowledge to carry out the pivot successfully. Take into account the monetary repercussions, skill gaps, and prospective effects on the current team and infrastructure.

• Strategic planning: Create an objective-driven, all-inclusive strategic plan for the pivot that includes your target market, value proposition, competitive positioning, and an execution roadmap in great detail.

• Risk assessment: Consider the risks and difficulties that could arise from the pivot, including market acceptance, customer acquisition, operational changes, and the possible disruption of current revenue streams. Create backup strategies to reduce these risks.

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