Global fintech and funding innovation ecosystem

To Pivot or Not to Pivot?

Mercury | Jun 23, 2023

Unsplash Peggy Sue Zinn change in direction - To Pivot or Not to Pivot?

Image: Unsplash/Peggy Sue Zinn

A successful pivot is more than a simple course correction—it is a profound transformation that requires careful consideration, resolute decision-making, and the ability to adapt to new circumstances while staying true to the company's mission and values.

  • How do you know when it’s time to pivot?
    • Recognizing the time to pivot typically involves identifying a problem with interest, adoption, or sales, and evaluating product-market fit.
      • Successful pivots often involve focusing on features that work, like Max's previous company did with instant messaging, or aligning business goals with market needs, as Hillary did with her healthcare startup, Curio.
      • Immad, co-founder of Hayzap, warns against sticking with the initial plan for too long, advocating for adaptability and taking advantage of market trends.

See:  Aquanow: Stablecoins and Gauging Market Sentiment

  • How to manage your team during a pivot?
    • Transparency and honesty during a pivot can inspire confidence within the team. Immad suggests letting the team in on the challenges and the plan to overcome them, as an authentic approach will generate more support than trying to conceal the issues.
    • Assessing the resources available, including capital, team skills, and learnings from past experiments, is crucial after deciding to pivot.
      • As Max points out, understanding what you have and how it can help you towards the new direction is essential.
      • Hillary also emphasizes the importance of keeping the team lean and motivated, which requires a compelling reason and narrative for the pivot.
  • Communicating with your investors
    • Startups should practice honesty and authenticity with their investors, particularly when planning a pivot. A transparent approach, rather than only presenting a positive picture, fosters trust and prevents sudden surprises.
    • Open communication with investors isn't just about maintaining their trust; it's also a chance to gain support during a pivot. Leveraging their experience and inviting them to collaborate can yield valuable insights and aid in planning future outcomes.

See:  11 C’s of Soft Leadership and Emotional Intelligence

  • Should you pivot to a new hype cycle or stay the course?
    • Startups should be mindful when considering jumping on hype cycles such as AI, focusing on the utility and alignment of the new technology with their mission rather than merely following trends. Incorporating such technology should provide value to their business and customers.
    • Capitalizing on hype cycles can be strategic, as it may attract more interest from investors and customers. It can also expedite product testing and iteration due to increased attention. However, founders should have a unique insight into the technology and be prepared to commit to it long-term, even after the hype subsides.

View more --> here


NCFA Jan 2018 resize - To Pivot or Not to Pivot?The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - To Pivot or Not to Pivot?FF Logo 400 v3 - To Pivot or Not to Pivot?community social impact - To Pivot or Not to Pivot?

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - To Pivot or Not to Pivot?




 

Leave a Reply

Your email address will not be published. Required fields are marked *

3 × five =