A frequent discussion topic within start-ups is pivoting. While the need to pivot can arise for various reasons, not all pivots are created equal. Based on experience, here are some common pivot strategies that tend to fail.
1. B2B to Consumer
When a founding team’s strength lies in selling to enterprise customers and having a deep network within a specific vertical, shifting focus to a consumer product is risky. Moving from the complexities of B2B to an AI meme maker for cute animals, for example, can seem appealing but usually misses the mark. This type of pivot often leads to a lack of traction, even if the founders are passionate about the new idea. Interestingly, consumer to B2B pivots tend to fare better due to the rise of product-led growth (PLG) motions and strong B2B user experience (UX).
2. Adding Chat, Social, or Notifications
If your product isn’t working or customer retention is low, bolting on social features or notifications rarely solves the problem. Simply adding more bells and whistles won’t engage users more effectively. A stronger pivot would involve turning these add-ons into the core feature of the product. Trying to shoehorn social elements into a failing product doesn’t make the experience more valuable; it often adds unnecessary complexity.
3. Chasing Trendy Tech
A common temptation is to pivot towards trendy technologies like AI or web3 in the hope of boosting interest. However, if the core product isn’t working, adding new tech isn’t the solution. At best, this creates a novelty spike as curious users test out the product. But without a real need being addressed, they won’t stick around. The issue with chasing trends is that they often feel tacked on, leaving customers and investors unconvinced.
4. Premature Platforms
A premature platform occurs when founders attempt to generalise their offering too early. For instance, if you’re building a social app for yoga enthusiasts and it’s not gaining traction, expanding it to support all wellness communities won’t fix the underlying issues. This “zooming out” strategy lacks focus and often dilutes the value proposition. Instead of targeting everything, start by perfecting the initial product.
5. Going From Paid to Free
When a product struggles to gain users, the instinct might be to make it free, hoping that removing the price barrier will drive interest. Unfortunately, if people aren’t excited about the product when it’s paid, making it free rarely changes that. If there’s no demand for the core value, users won’t flock to it, even at zero cost. Conversely, many products could benefit from adopting a premium or paid model, and charging more for a high-quality experience could be the better pivot.
In summary, successful pivots require thoughtful planning, not knee-jerk reactions to market trends or dwindling user bases. The lesson here is clear: avoid these common traps, focus on what your start-up does best, and pivot with a purpose. Working with start-ups through the SPEEDRUN program has shed light on a frequent topic—pivoting. While the need to pivot can arise for various reasons, not all pivots are created equal. Based on experience, here are some common pivot strategies that tend to fail.
1. B2B to Consumer
When a founding team’s strength lies in selling to enterprise customers and having a deep network within a specific vertical, shifting focus to a consumer product is risky. Moving from the complexities of B2B to an AI meme maker for cute animals, for example, can seem appealing but usually misses the mark. This type of pivot often leads to a lack of traction, even if the founders are passionate about the new idea. Interestingly, consumer to B2B pivots tend to fare better due to the rise of product-led growth (PLG) motions and strong B2B user experience (UX).
2. Adding Chat, Social, or Notifications
If your product isn’t working or customer retention is low, bolting on social features or notifications rarely solves the problem. Simply adding more bells and whistles won’t engage users more effectively. A stronger pivot would involve turning these add-ons into the core feature of the product. Trying to shoehorn social elements into a failing product doesn’t make the experience more valuable; it often adds unnecessary complexity.
3. Chasing Trendy Tech
A common temptation is to pivot towards trendy technologies like AI or web3 in the hope of boosting interest. However, if the core product isn’t working, adding new tech isn’t the solution. At best, this creates a novelty spike as curious users test out the product. But without a real need being addressed, they won’t stick around. The issue with chasing trends is that they often feel tacked on, leaving customers and investors unconvinced.
4. Premature Platforms
A premature platform occurs when founders attempt to generalise their offering too early. For instance, if you’re building a social app for yoga enthusiasts and it’s not gaining traction, expanding it to support all wellness communities won’t fix the underlying issues. This “zooming out” strategy lacks focus and often dilutes the value proposition. Instead of targeting everything, start by perfecting the initial product.
5. Going From Paid to Free
When a product struggles to gain users, the instinct might be to make it free, hoping that removing the price barrier will drive interest. Unfortunately, if people aren’t excited about the product when it’s paid, making it free rarely changes that. If there’s no demand for the core value, users won’t flock to it, even at zero cost. Conversely, many products could benefit from adopting a premium or paid model, and charging more for a high-quality experience could be the better pivot.
In summary, successful pivots require thoughtful planning, not knee-jerk reactions to market trends or dwindling user bases. The lesson here is clear: avoid these common traps, focus on what your startup does best, and pivot with a purpose.
