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When to Pivot – Reading the Warning Signs Before It’s Too Late

by Sebastian Murphy
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In startup mythology, the pivot is often romanticized-Airbnb started as a mattress rental company, Slack began as a gaming tool. But in reality, pivoting isn’t glamorous. It’s messy, uncertain, and often born from one uncomfortable realization:

What we’re doing isn’t working.

In 2025, the line between persistence and strategic denial is thinner than ever. Knowing when to pivot-and how-is a skill every founder must develop.


What a Pivot Actually Means

Let’s clarify: a pivot isn’t a panic move. It’s a deliberate shift in strategy based on market signals, customer feedback, or internal constraints.

It could be:

  • Changing the product
  • Shifting the audience
  • Overhauling the pricing model
  • Moving from B2C to B2B (or vice versa)

What it’s not? Starting over. The best pivots are evolution, not reinvention.


Early Warning Signs You Might Need to Pivot

  1. Customer Feedback Is Flattering-but Not Converting
    “This is really interesting!” is startup-speak for “I’ll never pay for this.”
  2. You’re Constantly Pushing Demand, Never Catching It
    If marketing feels like dragging a boulder uphill, it may not be the channel-it may be the product-market mismatch.
  3. Unit Economics Don’t Improve With Scale
    If costs rise with growth or margins erode the more customers you acquire, the model may be fundamentally broken.
  4. You’re Solving a Problem… That No One Urgently Feels
    Useful ≠ necessary. And in most markets, necessary wins.

Table: Pivot vs. Persevere

IndicatorPivotPersevere
Engagement with Paying UsersLow or non-existentGrowing, even slowly
CAC/LTV RatioDeteriorating or flatImproving with optimization
Sales CycleGetting longerBecoming more predictable
Team AlignmentLow belief in current directionShared conviction despite challenges

a man and a woman near a whiteboard drawing up a strategy

How to Pivot Without Burning Everything Down

  1. Talk to Your Best (or Most Honest) Customers
    The people who use your product will spot value you might’ve overlooked. The ones who churned will tell you why they didn’t care.
  2. Preserve What’s Working
    Is your onboarding stellar? Is your brand gaining traction? Take the gold with you-don’t throw out the entire mine.
  3. Move Fast, But Communicate Thoughtfully
    Your team isn’t pivoting mentally at the same time. Be clear about the why, the what, and the new plan of attack.

Pitfall to Avoid: Pivoting Every Quarter

Repeated pivots erode trust. If your strategy changes every investor update, it’s not iteration-it’s flailing. Be decisive, but grounded in data. Real change needs time to bear fruit.


Final Thought: Survival Is the First Success Metric

In an ideal world, your original idea works. In reality, most companies become great because they changed-at the right moment.

A pivot doesn’t mean failure. It means you’re still paying attention.

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