Process & Methodology

Pivot

Also Known As

Course CorrectionStrategic Shift

A pivot is a structured course correction in which a startup changes one or more fundamental elements of its business—such as target customer, problem, solution, or business model—while retaining learned insights.

What is a Pivot?

A pivot is not giving up or starting over—it's a strategic change based on validated learning. Eric Ries defines it as "a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth."

Types of Pivots

Customer Segment Pivot: Same product, different customer
Problem Pivot: Same customer, different problem
Solution Pivot: Same problem, different solution
Channel Pivot: Different distribution method
Revenue Model Pivot: Different monetization strategy
Technology Pivot: Different underlying technology
Platform Pivot: Product to platform (or vice versa)
Business Architecture Pivot: B2B to B2C (or vice versa)

When to Pivot

Signs you may need to pivot:

Flat or declining engagement metrics
Customers not willing to pay
High churn rates
Unable to achieve unit economics
Consistently negative feedback

Famous Pivots

Slack: Gaming company to team communication
Instagram: Check-in app (Burbn) to photo sharing
YouTube: Video dating site to video platform
Twitter: Podcast platform (Odeo) to microblogging

Example Usage

“After three months of poor traction, the startup decided to pivot from B2C to B2B.”

Real World Examples

SlackInstagramYouTubeTwitter

More Process & Methodology Terms

Ideation

Ideation is the systematic process of generating, developing, and refining new business ideas within a venture studio, typically guided by the studio's thesis and market research.

Validation

Validation is the process of testing assumptions and gathering evidence that a startup idea is worth pursuing, typically through customer interviews, prototypes, and market experiments.

Minimum Viable Product

A Minimum Viable Product (MVP) is the simplest version of a product that can be released to test core assumptions and gather validated learning with minimal effort.

Go-to-Market Strategy

A go-to-market (GTM) strategy is the comprehensive plan for launching a product into a market, including target customers, value proposition, pricing, distribution channels, and customer acquisition tactics.

Playbook

A playbook is a documented collection of best practices, processes, frameworks, and templates that venture studios use to systematically build startups, codifying learnings from past successes and failures.

View All Glossary Terms

Types of Pivots