How can you determine if your MVP is ready for a pivot?

A Minimum Viable Product (MVP) is meant to test the needs of the users, check the alignment of product features with user's expectations and improvising on the basis of feedback received. A primary example of MVP can be beta version of mobile apps where they invite some prospective users to use the app and report their experience, tell about any bugs, anything that should be changed to improve the final product. In case of a physical product an MVP can be the product at sample distribution phase to test the consumer's opinion on the use case. Generally sample distribution is treated as a marketing technique but it also is a testing strategy. After receiving the feedback from the users, the process of improvisation is called pivoting.

This is a good approach and the right business characteristic to determine the health of any business - but I think you should also allocate some funds for smaller startups needing upto 1 million pre series A round .. as with my 30 years of experience I've seen that the chances of creating valuations in access of 5x right upto 20x are significantly higher in smaller investments .

Few reasons you might want to consider a pivot: -> user tests / community feedback suggest initial hypothesis does not work -> organisational priorities shifted -> market is changing -> rapid technology change ->

One will need to pivot when the problem the MVP aimed to solve for does not have the depth, intensity and frequency that justify a product and business. In other words, when the product-market fit signals are pretty weak. That is the reason I come across the most and tends to be a great indicator of how resilient a founding team is. Other reason may include GTM considerations (eg wrong geo, wrong persona/ICP). Those tend to be “smaller” in nature pivots, but still a sensible variation from the original hypothesis. Don’t be afraid to pivot! It’s a sign of strength, not a weakness.

Define at process levels KPIs that support delivery of your strategy. Test, compare, learn. Repeat. Use learnings for informed decision making and action.

Most of often I see pure product-market fit for early signals tend to be the most adopted indicators. If B2B early stage, that means early customers / revenue. As the time goes on, churn/retention tend to be the consolidating signals of PMF. In B2C, that depends and it’s more nuanced based on the business model, but retention, in some of form of tailored variation, tends to be generally applicable one.

Pivoting is not admitting defeat; it's about adapting and evolving based on learned experiences and market dynamics. Stay agile and open to change, and use these signals as guides for strategic shifts in your business model. Market Shifts: Changes in the market or emerging trends can necessitate a pivot. For NZVZED, staying attuned to the evolving PropTech landscape was vital for timely pivots. Feedback Loop: Continuous user feedback is critical. If feedback consistently points towards a different direction than your current path, it's time to consider a pivot. Financial Sustainability: If the MVP isn’t financially viable or scalable, pivoting to a more sustainable model is necessary. Remember, don't be discouraged to ask for guidance..

You have learned all this in the last 6 chapters. The authors have invested time and effort. But have you already asked the crucial question? It is: Should I do everything completely differently than everyone recommends? Should I break the rules? An example: In the introductory text of chapter 5, vision and mission are mentioned as a matter of course. But are you aware that 90% of employees worldwide cannot name the vision and mission of their company? Is this perhaps because these tools are far too formal and far too intangible? Perhaps it is much better to focus on "passion" instead, namely a single sentence that you always have in mind in your work. This is just one example. Unruliness thinking is always your most important asset!