What is “Pivot” meaning?

Pivot is a business term that describes a fundamental change in strategy or product direction, typically based on feedback, performance data, or market shifts. It’s most commonly used in the startup world, where agility and adaptability are key.

A pivot doesn’t mean starting over—it means adjusting the course to find better alignment with market demand or business goals.

Example

“After seeing low user retention, the app team decided to pivot from a paid model to a freemium structure to drive growth.”

How is “Pivot” used in business?

In business, a pivot is used when current strategies aren't delivering results or new opportunities are discovered. Startups often pivot to better fit product-market needs, while larger companies might pivot to remain competitive in evolving industries. Successful pivots require fast decision-making, clear objectives, and strong communication across teams.

Pro Tip

Pivoting should be backed by data, not instinct alone. Validate the new direction with market testing before fully committing resources.

Related Terms

Product-Market Fit, MVP (Minimum Viable Product), Business Model, Growth Strategy