15- Too many pivots can be risky for a startup

This discussion is a brief look at the risks for a startup when the Lean Startup Method is used as a crutch — even abused — by startups without really having the passion and the business planning in launching their own business. The ideas became popular from the book by the same name by Eric Reis.

However, the danger of the abuse of this method is the theme of an article published on the internet. It centers on an article by Dan McGinn from the Harvard Business Review titled “Too many Pivots — too little passion: what’s wrong with today’s entrepreneurism?”

Thus, this audio content is a republished episode from a prior podcast called Entrepreneur Tools Online.

When the concept of the Lean Startup Method was quite popular in the world of startups, we saw that aspiring startups wanted to rush into that model. Many listened to podcast episodes of content from those who espoused the idea of a Lean Startup, and they took off with it — but without really doing any planning. From the examples that they read about and the success stories that were passed by blog and word-of-mouth, they felt that they could create a successful business as a lean startup “within a $250 budget over a weekend.” Then it would be a euphoric rise to the top and a great ride to success. But if the original idea did not catch fire right away, they would then use the PIVOT as a crutch. They would change ideas of the business right away, almost without thinking (and probably without any planning).

This would continue if there was no immediate success within a short time frame. And sometimes they would even pivot out of their planned environment to something else — even to another business model. Or even worse — they would pivot to a whole new industry. And sometimes, they would not even have any knowledge of — or relationship to — that industry.

What they really were enamored with was the concept and thought of calling themselves “startups” and “entrepreneurs.” This could be a ticking time-bomb that lands them in the mine field of possible disaster.

As you will hear in this audio episode, the thrill of calling themselves either “startup” or “entrepreneurs” cannot substitute for good planning, or for the passion needed for an entrepreneur, or for a good knowledge of the industry and the products within the industry in which these aspiring entrepreneurs want to invade with their small business.

We hope that those who plan to create a lean startup and become immediate entrepreneurs will stop to create and review good plans, and that they think carefully and respect the value of a real PIVOT.

Thank you for your attention.