A Pivot is a Structured Course Correction

A pivot is a structured course correction designed to test a new fundamental hypothesis about the product, business model, or engine of growth. It is not just a change; it is a special kind of change that is based on what has been learned from the market.

The decision to pivot or persevere is one of the most difficult decisions an entrepreneur faces. It requires a clear-eyed and objective mindset. The goal of innovation accounting is to provide the relevant data to make this decision.

A pivot is not a failure. It is a recognition that the original strategy was flawed and that a new direction is needed. It is a sign of a healthy startup that is learning and adapting to the market.

There are many different types of pivots, such as the zoom-in pivot, the customer segment pivot, and the platform pivot. The type of pivot that is right for a particular startup will depend on the specific circumstances.

The ability to pivot is what makes startups resilient. It allows them to recover from mistakes and find a path to a sustainable business.