Pivoting and Persevering
Make data-driven decisions about changing direction or staying the course.
Understanding Pivot and Persevere
The concepts of pivoting and persevering are crucial decision-making points within the Lean Startup framework. Both are informed by insights derived from validated learning and represent the fundamental strategic choices every startup faces.
The Two Options
- Pivot - A strategic decision to make a fundamental change in your product, business model, or target market based on data and feedback
- Persevere - Deciding to continue with your current strategy when validated learning indicates you're on the right track
Key Considerations
- Continually monitor customer feedback and performance metrics
- Regularly reassess and validate business assumptions
- Be honest about what the data is telling you
- Don't let ego or sunk costs drive your decisions
When to Pivot
A pivot becomes necessary when validated learning reveals that your current approach isn't working. Key indicators include:
Metrics Are Flat
Despite multiple iterations, your key metrics aren't improving. You're running experiments but not seeing meaningful progress.
Customer Feedback Disconnect
Customers consistently want something different from what you're building. Their needs don't align with your product direction.
Market Conditions Changed
External factors (competition, regulations, technology) have fundamentally altered the landscape. Your original thesis no longer holds.
Runway Running Low
You're running out of time and money without achieving product-market fit. A strategic change is needed to survive.
Types of Pivots
Eric Ries identifies several types of pivots that startups commonly make:
Zoom-In Pivot
A single feature becomes the whole product. What was previously one feature is now the entire value proposition.
Example: A full productivity suite pivots to focus only on its note-taking feature.
Zoom-Out Pivot
The whole product becomes a single feature of something larger. You expand scope to capture more value.
Example: A video calling app expands into a complete communication platform.
Customer Segment Pivot
The product solves a real problem, but for different customers than originally anticipated.
Example: A B2C app discovers its real market is B2B enterprise customers.
Customer Need Pivot
Through customer research, you discover a related but different problem worth solving.
Example: A scheduling tool discovers users really need project management.
Platform Pivot
Change from an application to a platform (or vice versa). Shift from selling a product to enabling an ecosystem.
Example: Amazon went from retailer to marketplace platform.
Revenue Model Pivot
Change how you make money. Same product, different monetization strategy.
Example: Moving from subscription to freemium, or from ads to direct sales.
Channel Pivot
Change how you reach customers. Same product, different distribution strategy.
Example: Moving from direct sales to partnerships or vice versa.
Technology Pivot
Achieve the same outcome using a fundamentally different technology approach.
Example: Moving from native apps to web-based delivery.
When to Persevere
Persevering makes sense when your validated learning indicates positive momentum:
- Metrics are improving - Even if slowly, you're seeing consistent upward trends
- Customer feedback is positive - Users are engaged and asking for more of what you're building
- Hypotheses are being validated - Your experiments confirm your core assumptions
- You have a clear path forward - You know what to build next and why
The Perseverance Trap
Persevering without evidence is just wishful thinking. Make sure your decision to continue is based on data, not hope. The sunk cost fallacy "we've already invested so much" is not a valid reason to persevere.
Not Sure If You Should Pivot?
LeanPivot's Pivot Compass objectively scores your metrics, runway, and trends to give you a data-backed recommendation in 10 minutes.
Explore all 50+ AI-powered tools
Making the Decision
The pivot-or-persevere decision should be based on a structured evaluation:
Decision Framework
- Review your original hypothesis - What did you set out to prove?
- Analyze the data - What do your experiments actually show?
- Consider the trend - Are things getting better or worse over time?
- Assess your runway - How much time and money do you have left?
- Evaluate alternatives - What pivot options are available?
- Make a clear decision - Commit fully to your choice
Famous Pivots
S
Slack: From Game to Communication
Original Vision: Tiny Speck was building a multiplayer game called Glitch.
The Pivot: The game failed, but the team had built an internal communication tool that was incredibly effective. They pivoted to make that tool the product.
Result: Slack became one of the fastest-growing business applications in history, acquired by Salesforce for $27.7 billion.
I
Instagram: From Burbn to Photos
Original Vision: Burbn was a location-based check-in app with many features.
The Pivot: The team noticed users loved the photo-sharing feature but ignored everything else. They stripped away everything except photos.
Result: Instagram launched and gained 25,000 users on day one. Acquired by Facebook for $1 billion.
Y
YouTube: From Dating to Video
Original Vision: A video dating site where people could upload videos introducing themselves.
The Pivot: When dating videos didn't take off, they opened the platform to all videos.
Result: YouTube became the world's largest video platform, acquired by Google for $1.65 billion.
Executing the Pivot
Once you've decided to pivot:
- Move quickly - Don't drag out the transition. Commit fully to the new direction.
- Communicate clearly - Ensure your team understands why you're pivoting and what comes next.
- Preserve learnings - Document what you learned. Those insights are still valuable.
- Reset expectations - A pivot is essentially a new startup. Reset your assumptions accordingly.
- Stay lean - Apply the same Build-Measure-Learn principles to your new direction.
Key Takeaway
"A pivot is a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth." (Ries, 2011)
Ready to Apply These Principles?
LeanPivot.ai provides 50+ AI-powered tools to help you implement Lean Startup methodology in your venture.
Start Free TodayReferences & Further Reading
Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Business.
Blank, S. (2013). The Four Steps to the Epiphany: Successful Strategies for Products that Win. K&S Ranch.
Croll, A. & Yoskovitz, B. (2013). Lean Analytics: Use Data to Build a Better Startup Faster. O'Reilly Media.
Fitzpatrick, R. (2013). The Mom Test: How to Talk to Customers & Learn if Your Business is a Good Idea When Everyone is Lying to You.
Moore, G. (2014). Crossing the Chasm: Marketing and Selling Disruptive Products to Mainstream Customers. Harper Business.
Some book links are affiliate links. We may earn a small commission at no extra cost to you.