Every entrepreneur eventually faces an overriding challenge in developing a successful product: deciding when to pivot and when to persevere
Failure is a prerequisite to learning.
Most entrepreneurs wish they would have pivoted sooner than they did. There are three reasons for this.
- Vanity metrics can allow entrepreneurs to form false conclusions and live in their own private reality
- When an entrepreneur has an unclear hypothesis, it’s almost impossible to experience complete failure, which is the only way you can change
- Many entrepreneurs are afraid. They fear their vision will prove to be wrong without having been given a real chance to prove itself
Different Types of Pivots
Zoom-in Pivot a single feature in a product becomes the whole product.
Zoom-out Pivot - what was considered the whole product becomes a single feature of a much larger product.
Customer Segment Pivot - change to a different customer base than originally anticipated.
Customer Need Pivot - when a company learns the problem they were trying to solve is not very important. The company finds other related problems instead. This may require a completely new product.
Platform Pivot - a change from an application to a platform or vice versa.
Business Architecture Pivot a pivot between two major business architectures: high margin, low volume (complex systems model) or low margin, high volume (volume operations model).
Value Capture Pivot - they change the way they capture value. Value captures are like monetizations and revenue models
Engine of Growth Pivot - changes its growth strategy to seek faster or more profitable growth.Commonly but not always, the engine of growth also requires a change in the way value is captured.
Channel Pivot - changes sales channel or distribution channel (the way the customer gets the product)
Technology Pivot - a company that discovers a way to achieve the same solution by using a completely different technology.
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