A Brief Guide To Startup Pivots: How Your Schedule Can Make or Break You

A Brief Guide To Startup Pivots: How Your Schedule Can Make or Break You

Starting a company is no easy feat. It takes a lot of time, effort, and resources to get a business off the ground. However, there may come a point where you realize that your original idea or product isn't gaining traction in the market. In these situations, there are a few options available to you: give up and sell the company, shut down and return money to investors, or pivot.

Pivoting is often seen as the most viable option for startups. It allows you to change your direction and find a new market or product that aligns better with your goals. There are different types of pivots that you can consider, depending on your specific situation.

The first type of pivot is to stay within your existing market but make some changes. This is often the easiest and least risky option for founders. They may worry about the sunk cost and industry knowledge they have built, leading them to pivot within their market instead of exploring new areas. However, it's important to remember that startups tend to fail due to bad product/market fit. As Andy Rachleff, founder of Benchmark Capital, said, "When a great team meets a lousy market, the market wins. When a lousy team meets a great market, the market wins. When a great team meets a great market, something special happens." So, before pivoting within your market, consider if there's a better opportunity elsewhere.

The second type of pivot involves repositioning or editing down your product. If you notice that your product is gaining enthusiastic adoption in a single user base or use case, it might make sense to focus all your attention on that particular area. By amplifying or focusing on the behavior that is already working, you can create a stronger product/market fit. However, it's important to consider the downsides of keeping the original product alive. It may demand a lot of time and attention from your team, create confusion about your brand, and hinder your ability to make clear changes. If your legacy business is still generating sufficient cash flow, it might be worth keeping it while launching a new brand for your pivot.

The third type of pivot involves launching a tool that you used while building your own company. Building something for others that you need for yourself is often a successful way to identify a real product or market need. However, this type of pivot requires rebuilding your team to be able to build the product or sell into the new market. If you need to make this transition and do layoffs, it's important to do it quickly and be as fair as possible to your employees. Losing employees who no longer believe in the new direction may actually be a good thing, as you need a core set of true believers to weather the storm.

Sometimes, a pivot may require more drastic changes, such as changing the co-founders of the company or finding new investors. In these cases, it may be better to restart the company rather than fight over equity or try to convince investors who no longer believe in your vision. This restart can involve returning remaining cash, forming a new founding team, offering a new portion to investors, and going after a new mission. It's important to manage the various stakeholders through this transition, let go of the past, and focus on creating a bright new future for your company.

In addition to understanding the different types of pivots, it's also important to consider how your schedule can impact your success as a founder. The concept of maker vs. manager schedules is something that Paul Graham of Y Combinator first described in a 2009 essay. Makers are those who create tangible value, while managers focus on organizing people and making decisions. These two types of work require different types of schedules.

When operating on a maker's schedule, meetings can be a disaster. A single meeting can break your flow and make it difficult to focus on hard tasks. Managers, on the other hand, are used to constant meetings and can easily shift their focus from one task to another. To be productive as a maker, it's important to have extended periods of uninterrupted concentration. This means setting boundaries for those around you and creating an environment that allows for deep work.

Many of us go through our days on autopilot, not giving much thought to how we spend our time. This can be detrimental to our productivity and overall success. It's important to regularly assess how you balance deep and shallow work and make conscious decisions about how to best use your time. By pausing before taking action and asking yourself, "What makes the most sense right now?", you can ensure that you're prioritizing the tasks that will bring the most value.

In terms of workspace, research has shown that top performers thrive in environments that offer privacy, personal space, control over their physical surroundings, and freedom from interruption. Interruptions can disrupt flow state and hinder performance, so it's important for managers to decrease unnecessary interruptions and provide a secure and private environment for makers to do their best work.

In conclusion, startup pivots and effective scheduling are both crucial elements of success for founders. When considering a pivot, it's important to explore new markets or products, focus on what's working, and be open to making significant changes. Additionally, understanding the difference between maker and manager schedules can help you prioritize deep work and create an environment that fosters productivity. By incorporating these insights into your startup journey, you can increase your chances of building a successful and thriving company.

Actionable advice:

1. When considering a pivot, don't be afraid to explore new markets or products. Sometimes, the best opportunities lie outside of your existing market.
2. Prioritize deep work by setting boundaries and creating an environment that allows for uninterrupted concentration. Minimize distractions and interruptions to maximize productivity.
3. Keep an eye on the balance between deep and shallow work in your schedule. Regularly assess how you spend your time and make conscious decisions about what tasks will bring the most value to your business.