There are lots of business ideas and tech innovations that sound like good ideas. But the real test of an idea is the marketplace. People might like your idea, but will they buy it? Will enough people buy it to make the business viable? Even if you’ve done your market research, sometimes consumer feedback tells you it just won’t work.
This happens all the time with startups. And the smart ones don’t keep throwing good money after bad. Nor do they give up altogether. Instead, they pivot. When you pivot, you shift your business model or strategy based on the feedback you get from the market. That’s how Odeo, a podcasting platform, became Twitter. And that’s how YouTube gave up on video-dating and became a massively popular video-sharing site.
Pivoting well isn’t easy. It takes some tough conversations about new goals for the company and new needs. And one of the toughest aspects of the pivot is sacrificing some of your old ideas. You also have to remember it’s not just about you and your ideas. When you pivot, you need to consider your team and your investors as well.
In today’s dialog, we’ll listen to a conversation between a young entrepreneur named Quinn and his mentor, Kira. Quinn has been working hard to get his online payments business going. Now he sees that it would be wise to pivot his focus from individual consumers to business customers.
1. What does Quinn say is the company’s most pressing need?
2. What is the old idea that Quinn needs to sacrifice to pivot his business?
3. What does Quinn say his investors need to understand?
Download: Podcast MP3