How to pivot your early-stage startup
You’ve poured everything into your startup—late nights, endless brainstorms, and all the passion you’ve got. But what happens when the momentum stalls?
Maybe users aren’t sticking around, customers aren’t biting, or your product just isn’t hitting the mark. It’s frustrating, exhausting, and can leave you questioning everything.
Here’s the thing: this doesn’t mean you’re failing. It might mean it’s time to pivot. Think of a startup like a small sailboat. When the wind changes, you don’t keep going the same way—you adjust your sails.
It’s not always easy. Pivoting means taking a risk. It’s admitting that parts of your original idea weren’t quite right, and betting on a new path. But we find it’s often what separates startups that succeed from those that don’t. A pivot done well can transform a struggling business into a success.
This guide will show you how to know when to pivot, how to test your new idea, and how to change course without losing your team, customers, or your mind.
What is a pivot?
A pivot is when a startup changes course to improve its chances of success.
This might mean you create a different product, target a new audience, or change how the business makes money. It happens when the original idea no longer works, but the team spots a better way to solve a problem or help their customers.
For example, let’s say you create an app to help people book fitness classes. At first, you think that’s what people want, but then you notice most users actually use the app to meet other fitness lovers.
So, you change the app into a social network for fitness fans, adding features like group chats and challenges. When you drill down on what users really want, your app becomes more successful.
Even big companies have pivoted. Take Slack: it started as a tool built by a game company. The game didn’t succeed, but the team realised their communication tool could. They turned it into Slack, and now it’s a multi-billion-dollar business.
A pivot is all about noticing opportunities and having the courage to adapt.
How to pivot your startup
Startups are like science experiments. You start with an idea, but when it meets the real world, things often don’t go as planned.
The way to combat this is to recognise when your startup isn’t working and make changes quickly. That’s how you guide your startup toward real growth.
Here’s a step-by-step guide you can follow to pivot your startup.
Step 1: Notice the need to pivot
Making the call to pivot is one of the toughest decisions for founders. It can feel like you’re giving up, but in reality, it’s a calculated move that might save your startup.
The challenge is to know the difference between normal hurdles and clear signs that your current direction is wrong. Here are five key signals that it might be time to pivot:
1. Lack of traction
Traction is the progress your startup makes when it's solving a real problem for real people. Your metrics – numbers like how many users you have, how engaged they are, how many stick around, and how much money you're making – show how well things are going.
If these numbers aren’t improving or are going down, even though you're pushing hard, it might mean there's a bigger issue with your product, your audience, or how you're doing things—and it’s worth taking a step back to rethink.
2. Negative market feedback
If customers are asking for things your product doesn’t have or aren’t happy with it, it might mean you’re solving the wrong problem or targeting the wrong audience.
Pay attention to common complaints or requests. These often highlight what matters most to your customers. Ignoring these signals could mean missing a chance to improve your product, better meet customer needs, or pivot to changing expectations.
3. Resource misalignment
A good startup works best when everyone and everything—your team, tools, and resources—are focused on the same goal.
If your team feels frustrated, unsure of what to do, or like their skills aren’t being used properly, it’s not just about motivation. It could mean there’s a bigger issue with your plan or direction.
When your goals and opportunities don’t line up, it can slow your progress. This might be a sign it’s time to pivot and realign your focus.
4. Bad benchmarks against competitors
If your competitors are succeeding while your startup is struggling, it’s time to take a closer look. Are they offering something you’re not? Are they solving the problem in a better or more effective way?
If your approach doesn’t play to your strengths or make you stand out, it could be a sign you need to rethink and pivot your strategy.
5. Poor product-market fit
Product-market fit means your product solves a problem people really need fixed. If customers aren’t sticking around, it might mean your product is good, but not something they truly need.
Likewise, if it costs too much to get customers compared to the money they bring in, it could mean your product doesn’t match the size of the market or the demand. This could be a sign to adjust your product or target audience..
Step 2: Diagnose the problem
Great pivots are grounded in knowing your customers and the root of their problems.
Startups often fail when they pivot blindly, chasing trends or gut feelings instead of relying on real insights. This is where feedback loops are useful.
A feedback loop is where you collect information, learn from it, and make changes to improve. Then you repeat as often as needed.
There are two main types of feedback loops you should use:
Customer feedback loops: These come from directly talking to your customers. By asking questions and listening carefully, you can uncover why your product is or isn’t working for them. This type of feedback gives you a deeper understanding of their needs and pain points.
Data feedback loops: These are driven by measurable results, such as retention rates, engagement levels, and revenue trends. Metrics tell you what is happening, showing patterns in how customers interact with your product. \
When used together, these feedback loops provide a clear foundation for pivoting. They help you base decisions on real evidence rather than guesswork, so you can adapt your startup with confidence.
How to use customer feedback loops
Creating meaningful customer feedback loops starts with stepping outside your comfort zone.
You need to leave the office—and your assumptions behind—to engage directly with customers.
It’s tempting to believe you already know the problem or even blame your customers when things aren’t working. Resist that urge. Your goal isn’t to prove you’re right but to uncover the truth, even if it’s inconvenient.
Reach out to people already using your product. They know it well and can give you the most valuable insights. To find out more, avoid yes/no answers and ask open-ended questions to dig deeper:
- “What’s the biggest challenge you face in [your target area]?”
- “How do you currently solve this problem?”
- “What frustrates you about the current options?”
- “If you could wave a magic wand, what would the ideal solution look like?”
Sometimes, customers will reveal problems you hadn’t considered. Other times, they’ll use your product in unexpected ways, pointing to hidden opportunities. Either way, the key is to listen without bias and learn from their experiences.
If you can embrace their feedback, you’ll uncover the insights needed to refine your product, adapt your strategy, and ultimately, move closer to success.
How to Use data feedback loops
Data feedback loops guide smart decisions by turning raw information into actionable insights. The type of data you track depends on your goals—whether it’s improving a product, refining marketing, or optimising operations.
Here are some key data types to focus on:
- User behaviour data reveals how people interact with your product, showing patterns like time spent, retention rates, and feature usage.
- Customer feedback captures satisfaction and suggestions through surveys, reviews, and support tickets.
- Marketing data measures campaign success, tracking metrics like cost per lead, traffic sources, and ROI.
- Operational data identifies technical issues, such as error rates, feature adoption, and churn.
- Financial data highlights customer value and profitability through metrics like revenue per user and lifetime value.
- Competitor and market data provides industry context, customer trends, and insights into how you compare.
Once you’ve collected data, ask these key questions:
- What do the numbers tell me?
- What patterns are emerging?
- What’s the opportunity cost of staying the course?
For instance, if data shows users dropping off during a free trial, feedback might reveal they’re not seeing value quickly enough. This insight could lead to a pivot, like redesigning onboarding or targeting a different audience.
How to use customer and data feedback together
Once you’ve gathered insights from customer feedback and data loops, the next step is to categorise the problem. Most startup challenges fall into one of four categories:
1. Market Issue: There’s no real demand for your solution, or the market is too small to support growth. \
2. Product Issue: Your product doesn’t effectively solve the problem or deliver enough value to retain customers. \
3. Business Model Issue: Your pricing, cost structure, or revenue streams are unsustainable. \
4. Execution Issue: Your processes, resources, or strategies aren’t effectively delivering the product. \
For example, imagine a SaaS startup with high customer churn. Customer interviews reveal there’s strong market demand (lots of sign-ups), but the product is too complex. Users don’t see value quickly enough, so they leave.
This points to a product issue—a misalignment between the product’s design and customer needs.
Through diagnosing the root cause, you can pivot with confidence and focus your efforts on solving the real problem.
Step 3: Define the type of pivot you’ll make
Now that you’ve identified the root problem, it’s time to decide how to change direction.
This stage involves choosing a specific type of pivot that aligns with your insights and long-term goals. It’s where you transform what you’ve learned into a clear, actionable plan.
Here are some common types of pivots to consider.
1. Market pivot
A market pivot is when you realise your product isn't quite right for the audience you're targeting.
Rather than changing the product itself, you shift your focus to a different group who needs it more.
For example, imagine you made an app for teenagers, but you find out young professionals are actually using it instead. You’d then adjust your marketing to suit young professionals, focusing on their needs.
It’s all about finding the best match between your product and the people who benefit from it most.
2. Product pivot
A product pivot happens when your product isn’t solving the problem as well as it could. But instead of starting over, you improve it based on what you’ve learned.
For example, if you made a fitness tracker for athletes, but discovered that it is too complicated for casual users, you might simplify it to work better for beginners.
This helps make your product a better fit for the problem it’s solving.
3. Business model pivot
A business model pivot happens when how you make money isn’t working, even if your product and audience are fine.
For instance, you might stop selling one-off purchases and switch to a subscription service. Or you could start selling to businesses instead of individuals. You might even adjust prices or bundle products together differently.
This pivot helps you find a better, more reliable way to earn money and grow your business.
4. Execution pivot
An execution pivot is about improving how you get your product or service to customers. The product doesn’t change, but you work on making your processes smoother and faster.
For example, if customers are frustrated by shipping delays, you might switch to a better delivery company or handle deliveries yourself.
This pivot makes sure your product gets to customers in the best possible way.
5. Zooming in and out
This type of pivot is about changing the size of what your business focuses on:
- Zoom-In Pivot: You focus on one specific feature that customers love. For example, Instagram started as a multi-functional app but pivoted to focus on photo sharing.
- Zoom-Out Pivot: You expand to solve a bigger problem. For instance, Amazon started by selling books but grew into a marketplace for everything.
Both are about adjusting your focus—making it smaller or bigger—to better meet customer needs.
How to choose the right type of pivot
Choosing the right pivot is all about making a smart change based on real data and feedback from your customers. To know what type of pivot to make, ask yourself:
- 1. What’s the problem diagnosed? Is it with the market, product, business model or execution?
- 2. What strengths can we leverage? Identify what’s already working. Could a feature or process be repurposed or expanded?
- 3. What aligns with our vision? A pivot should help you find a better path to achieve your vision
While small pivots can fix immediate problems, they don’t usually lead to big growth.
Instead, think about what your startup could be, not just what it is now. This is your opportunity to rethink your business, stand out from the crowd, and aim for something extraordinary. So make it count, and do it right.
Step 4: Set and test a new hypothesis
At the core of any successful pivot lies a simple truth: you don’t know everything.
That’s where hypothesis-driven learning comes in. This is a way to turn your insights into actionable experiments. For example:
- “Our target audience doesn’t value our current feature set. They’re more interested in [new feature or solution].”
- “We’ve been focusing on the wrong customer segment. [Segment B] has a more urgent need for our product.”
Each hypothesis becomes the foundation for an experiment. This looks like:
- 1. Set a hypothesis: Define what you’re testing and what success looks like. For example: “Adding feature X will increase retention by 20%.”
- 2. Run experiments: Roll out the change on a small scale. Try the change with a subset of your audience or launch a limited version of your product.
- 3. Collect feedback: Look at the numbers and listen to your customers. What’s their reaction? Are they engaging with the change?
- 4. Analyse and decide: Use your results to decide whether to move forward, adjust your approach, or abandon the idea.
For example, if you’re thinking about switching from a business-to-business (B2B) model to a business-to-consumer (B2C) model, you might start with a small consumer-facing ad campaign:
- Your hypothesis is: [Audience Y] will respond better to my product
- Your test is: Your consumer-facing ad campaign
Once you’ve launched your experiment, pay attention to how people interact with your change. Are they interested? Do they understand the value? Would they pay for it?
Use every experiment to sharpen your understanding. The successful tests will guide your pivot.
Step 5: Plan the pivot
This is the stage where your ideas transform into tangible changes, and your startup begins to shift toward its new direction.
Here are some strategies to approach your pivot:
1. Decide where to reallocate resources
When you change direction, you need to think about how your money, team, and time are being used.
Look at where your resources are going now and decide what you can reuse or cut back to support the new focus.
- Money: Shift your budget from less important projects to the most critical parts of the change.
- People: Choose the best team members to lead the transition and make sure they know what to focus on.
- Time: Adjust your schedule to prioritise key tasks, like updating systems, training staff, or promoting the new plan.
When you can focus on what really matters, you’ll avoid spreading yourself too thin and give your pivot the best chance of success.
2. Keep what works for you
When you change direction, don’t lose sight of what your business is already doing well. Figure out your core strengths and make them part of the new plan.
- Customers: Stay connected with loyal customers and show them how the changes will help them.
- Brand: Use the trust and recognition you’ve already built to support your new direction.
- Processes: Keep any systems that are working well and include them in the new setup.
By holding onto your strengths, you build on a solid foundation instead of starting over. This makes your startup stronger as a whole.
3. Decide how to monitor progress
When you change direction, it’s important to keep an eye on how things are going. Decide what to measure to see if the new plan is working.
Start by deciding what to measure. This could include how many new customers you’re gaining, how many are staying, how much money you’re making, or whether your services are improving.
Set clear checkpoints along the way to see if you’re on track.
For example, if you’re launching a subscription service. You can monitor how many people are signing up, why they might cancel, and what feedback they’re giving. If something isn’t going well, figure out the issue and make changes.
If things aren’t going well, figure out why and make changes. Keep your team updated so everyone stays motivated and works towards the same goal.
Step 6: Execute the pivot
When you're pivoting, it's important not to make big changes all at once. Even if your new idea seems like a winner, rolling it out too quickly can cause unexpected problems.
It’s like dipping your toes into the water before jumping in—you want to test things gradually to make sure they’re working as planned. Here’s two great ways to do it:
1. Keep the old, and bring in the new
Start by keeping your current business model running while introducing the new one on the side.
For example, if you’re shifting to a subscription service, keep offering your original option so customers can choose what suits them best.
This way, you’re not forcing a sudden change on everyone, and you can see how well the new idea resonates.
2. Start with a small group
You could also try testing the pivot with a smaller group of customers first.
For instance, offer the new service to your most loyal customers or focus on one specific area to get feedback and identify any issues before expanding further.
This smaller scale makes it easier to adjust things like pricing, features, or how you explain the new idea.
Why to pivot slowly
Moving gradually reduces the risk of your pivot. If something doesn’t work quite as expected, you have room to fix it without disrupting the entire business.
Think of this as planting seeds. You start small, test the soil, and adjust how you care for each seed based on how it’s growing. Over time, you’ll know which ideas are ready to flourish and which might need a little more care.
This steady approach not only helps your pivot succeed but also makes the transition smoother for everyone involved.
Step 7: Communicate your pivot
Executing a pivot successfully means making sure everyone is on the same page. If your customers, stakeholders, or team don’t understand the change or why it’s important, even the smartest pivot can fall flat.
Here’s how you can do it.
1. Update your messaging
The first step is to refresh your messaging across all touchpoints.
Start with your website. Rewrite your value proposition to align with the pivot. Highlight how the new direction solves problems or creates opportunities for your audience.
Update product descriptions, calls-to-action, and any FAQs to reflect the changes.
Next, revise your marketing materials. Social media, email campaigns, and brochures should echo your new messaging.
A strong message answers two questions: Why the change? and what's in it for me? Be clear about the benefits of the pivot and how it improves their experience.
For example, if you’ve pivoted from a one-time purchase model to a subscription, emphasise convenience, cost savings, or access to exclusive features.
2. Engage stakeholders
Your pivot will impact more than customers. Employees, investors, and partners all need to understand and buy into the change.
Proactively communicate with these groups to build alignment and trust.
For your team, hold a company-wide meeting to explain the pivot. Share the rationale behind it, the vision for the future, and their role in making it successful. A united team is your greatest asset during a transition.
For investors and partners, host targeted sessions like webinars or one-on-one calls. Provide data that supports the pivot, such as customer feedback or market trends. Address their concerns and show how the pivot strengthens the business.
3. Celebrate your pivot success
As the pivot gains traction, share your wins. Post case studies of early adopters who’ve seen success with your new direction.
Announce milestones, like hitting a certain number of subscriptions or launching a new feature. These updates show progress and build confidence in your audience.
Celebrating progress also keeps your team motivated. Recognise their efforts and remind them how far you’ve come. Small victories pave the way for bigger ones.
Final thoughts
Pivoting is one of the toughest decisions you’ll face as a startup founder. It takes courage and humility to admit when something isn’t working, but making the right pivot can set you up for success.
While the process can be challenging, the approach is straightforward: listen to the data, pay attention to customer feedback, and stay flexible as you make changes.
A pivot is your chance to realign your efforts, concentrate on what truly matters, and find new ways to innovate. When done right, it’s the path to building something extraordinary.