Glossary · Strategy
What is Pivot?
Definition
A pivot is a deliberate change in a business's direction, such as its product, customer, or model, based on what you have learned from the market.
Why it matters
Pivoting is a normal part of building a business, not a sign of failure. The key is to change because of evidence rather than frustration.
A founder starts a meal-prep service for busy professionals but finds only 12 customers after four months, and half keep asking about gym-specific macros. She pivots to serve local gym members and partners with two gyms. Within three months she has 55 customers paying $70 a week, taking monthly revenue from about $3,400 to over $15,000.
Pivots can be small, like changing your price or channel, or large, like serving a new market. Keep what works, such as your skills and early customer relationships.
Common mistakes
- !Pivoting at the first sign of difficulty before giving an idea a fair test.
- !Holding on to a failing plan long after the data says it is not working.
Frequently asked questions
What is Pivot?
A pivot is a deliberate change in a business's direction, such as its product, customer, or model, based on what you have learned from the market.
What mistakes do beginners make with Pivot?
Pivoting at the first sign of difficulty before giving an idea a fair test. Holding on to a failing plan long after the data says it is not working.
Related terms