Pivot or Persevere

niklas kaikonen

Once again, it’s time for the team and investors to evaluate whether the business is moving toward its vision or if it requires a significant change — a pivot. This decision is critical, as the stakes will be higher in the following stages and substantial amounts of money will be invested in scaling the business.

 

Honest assessment is key — even if it hurts

It’s important to ask: has the product or service truly demonstrated its ability to meet customer needs? Has the profitability and scalability of the business model been clearly proven? At this point, intuition or passion alone is not enough — the decision to pivot must be based on facts, collected data, and thorough analysis.

 

When is a pivot necessary?

A pivot is needed if customer validation has not produced the desired results. This may mean that customer interest, willingness to pay, or revenue expectations are not meeting targets. In this case, the company must pivot — returning to product or strategy development to better match market needs. While it may feel like a step backward, it’s often a necessary step toward sustainable growth. Don’t hesitate to make the pivot decision — it’s highly likely that areas for improvement will be found in the business model, requiring new hypotheses and systematic testing. In the startup world, speed, flexibility, and the ability to learn from mistakes are essential qualities that separate winners from the rest.


 

🚦 Task:

Decide whether to persevere or pivot.

📖 Learn more:

The Lean Startup, pp. 149-178


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