Pivot

A pivot, in the context of Lean Start-up, is a deliberate change of course when it becomes apparent (through measuring and learning from the MVP) that the current approach is not moving the enterprise towards the drivers of the business model.

Reis identifies a number of pivots a start-up can make:

Zoom In - when one feature becomes the whole product

Zoom Out – when the product isn’t ‘big’ enough so becomes a feature on a bigger product

Customer Segment - when product serves client need but not the ones they hypothesised

Customer Need - when working closely with customer, we find that the problem we thought they had isn’t that significant for them but through relationship they tell us another problem

Platform – when we move from an app that becomes a platform for others on which to build their businesses

Business Architecture – when we move from high margin / low volume to low margin / high volume (or vice-versa)

Engine of Growth – when you change how you grow your customer base (sticky – retention rate + recruitment rate must be bigger than losing customers; viral – word of mouth, multiplier; paid – basically a way of generating traffic / advertising)

Value Capture – when you change how you earn money (from what)

Channel – when you change how you get to market

Technology – when you adopt a new way of solving existing problem / delivering solution

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