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What is the primary factor that drives the decision to pivot?
Pivot is hard but sometimes unavoidable, what do you think the key factor matter the most here?
1. Lack of Product-Market Fit
2. Shifting Market Conditions
3. Feedback and Data
4. Financial Sustainability
5. Team Alignment and Capability
please share your experience or idea about a pivot.
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Vlad Golub
One additional factor that drives a pivot decision: Technological Advancement. It’s important to stay ahead and innovate to address new trends and meet evolving consumer needs
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@realvladgolub I have observed numerous impressive technologies that unfortunately lack user demand, leading them to become "tech in search of a solution." I have witnessed firsthand the experience of a talented team raising $100 million for an advanced technology that ultimately failed to find a practical business use case and had to shut down. Despite the significant investment, this new technology never delivered a minimum viable product (MVP).
@kenlian Agreed! I have a friend who raised 1.7 million dollars for AI-powered racing drones, but, in the end, he had to return the money to the VC because he did not find a product-market fit. But my response was a bit different. I mean, if the new big technology comes in in your niche (not just hype think like metaverse), you need to pivot or adapt your business. It's like not pivoting/adapting and continuing to invest in carriages after the Model T has already been invented.
@kenlian From whatever I've seen, the first three can be primary factors for pivot.
The first one can be avoided by thoroughly analyzing the market and then building the product. The second factor is something we cannot control but we have to try riding the waves rather pivot (because, we would've built the product only after deep analysis and R&D). If we had built the MLP (Minimum Lovable Product) in our starting phase, we would be receiving positive feedback mostly - which will prevent us from pivoting.
@mukhil_maran This is the first time I hear about MLP, cute. But the reality is that building an MVP is already very difficult in the early stage, leave alone an MLP thou. Agreed that you need to check the first three, #2 is uncertain and has less control but we can at least decide what we want to do with #1 and #3.
the decision to pivot is the realization that the current approach is not yielding the desired results or aligning with the market demands, prompting a strategic shift in order to adapt, innovate, and remain competitive.
@mariegreenie I appreciate the term "yielding" as it reflects a business logic that considers return on investment (ROI). In my opinion, pivoting often arises when there is a realization that a viable path to profitability is unclear, and the cost of maintaining the product/service increases with more users.
It's all about transformation:
State 1 of your IC = Initial painful state
State 2 of your IC = You solved the critical pain
If the transformation you provide and your communication strategy fails to resonate with your IC, then it's time to pivot. @kenlian
@kenlian Sorry I used Jargon, Ideal Client:
The persona you're targeting in your Landing page (Wording you decide to use/Your Branding)
"The primary factor that often drives the decision to pivot in the eCommerce industry is the ever-evolving market dynamics. With fierce competition and rapidly changing consumer preferences, it becomes crucial for eCommerce businesses to adapt and stay ahead. One aspect that shouldn't be overlooked during this decision-making process is seeking guidance from experts, such as eCommerce consultants or business coaches. Their insights and expertise can help assess market trends, analyze customer needs, and identify strategic opportunities for a successful pivot. Leveraging their guidance, eCommerce businesses can make informed decisions to navigate the competitive landscape and drive growth in the right direction." https://ecommappnow.com/