Lessons from Pivoting a Startup
May 23, 2023
In 2020, when I joined Futureloop, a burgeoning tech company, the team was steeped in building a B2C model that relied heavily on unique, feature-rich virtual reality (VR) applications and tech gimmicks like a phone that featured Peter Diamandis in 3D. Despite these creative pursuits, the consumer traction and revenue remained negligible. Recognizing this mismatch, we took a strategic detour, pivoting from a B2C model to a B2B one. This narrative recounts that transformative journey and the lessons we learned along the way.
Our B2C path was filled with ambitious undertakings. We ventured into VR apps, developed an iOS app packed with a slew of exciting features, and even produced a phone that virtually presented Peter Diamandis. However, the intersection of such high-end tech and consumer interest turned out to be narrower than we anticipated. The products, while innovative, failed to hit a chord with consumers at scale and thus, the revenue generation remained stagnant.
Pivot Please
With our B2C approach hitting a roadblock, we decided to pivot. But, to where? The answer lay hidden in the responses from a user survey we conducted. We discovered that many of our users were deriving business value from our newsletters, using them as information tools for their respective businesses. This key insight sparked an idea: Could we harness this potential by creating personalized newsletters for businesses?
Seizing this opportunity required a paradigm shift. We brainstormed, validated the concept with users, and even asked for pre-payment for a product that was still on the drawing board. The response was encouraging. Not only did this unconventional method validate our new direction, it also acted as the impetus to begin the development of this newly conceived product offering.
The pivot to the B2B model heralded a new dawn for Futureloop. Within a few sprints, we had a fresh product to ship that was already generating revenue. Moreover, this new business model breathed life into our fundraising campaign. While the initial success was heartening, the B2B arena presented its unique set of challenges. It required a rethinking of our client approach and a new, more structured client engagement model. However, drawing from my experience of working with designers and engineers at ESPN, we overcame these obstacles to further strengthen our foothold in the B2B sector.
Key Lessons
The pivot from B2C to B2B was an enlightening journey. It underscored the importance of staying attuned to user feedback and being open to pivots, no matter how drastic. It also demonstrated how pre-emptive validation (like asking for pre-payment) can minimize the risk involved in such transformations. The agility of the team was paramount in quickly actualizing the new strategy.
Futureloop's successful transition from B2C to B2B wasn't just a win for the company—it also represented a milestone in my professional growth. It's a testament to the power of user feedback, the willingness to pivot, and the courage to validate business ideas through bold moves. For all other entrepreneurs contemplating a similar shift, remember this: listen, pivot, validate, and never be afraid of challenging the status quo.
In 2020, when I joined Futureloop, a burgeoning tech company, the team was steeped in building a B2C model that relied heavily on unique, feature-rich virtual reality (VR) applications and tech gimmicks like a phone that featured Peter Diamandis in 3D. Despite these creative pursuits, the consumer traction and revenue remained negligible. Recognizing this mismatch, we took a strategic detour, pivoting from a B2C model to a B2B one. This narrative recounts that transformative journey and the lessons we learned along the way.
Our B2C path was filled with ambitious undertakings. We ventured into VR apps, developed an iOS app packed with a slew of exciting features, and even produced a phone that virtually presented Peter Diamandis. However, the intersection of such high-end tech and consumer interest turned out to be narrower than we anticipated. The products, while innovative, failed to hit a chord with consumers at scale and thus, the revenue generation remained stagnant.
Pivot Please
With our B2C approach hitting a roadblock, we decided to pivot. But, to where? The answer lay hidden in the responses from a user survey we conducted. We discovered that many of our users were deriving business value from our newsletters, using them as information tools for their respective businesses. This key insight sparked an idea: Could we harness this potential by creating personalized newsletters for businesses?
Seizing this opportunity required a paradigm shift. We brainstormed, validated the concept with users, and even asked for pre-payment for a product that was still on the drawing board. The response was encouraging. Not only did this unconventional method validate our new direction, it also acted as the impetus to begin the development of this newly conceived product offering.
The pivot to the B2B model heralded a new dawn for Futureloop. Within a few sprints, we had a fresh product to ship that was already generating revenue. Moreover, this new business model breathed life into our fundraising campaign. While the initial success was heartening, the B2B arena presented its unique set of challenges. It required a rethinking of our client approach and a new, more structured client engagement model. However, drawing from my experience of working with designers and engineers at ESPN, we overcame these obstacles to further strengthen our foothold in the B2B sector.
Key Lessons
The pivot from B2C to B2B was an enlightening journey. It underscored the importance of staying attuned to user feedback and being open to pivots, no matter how drastic. It also demonstrated how pre-emptive validation (like asking for pre-payment) can minimize the risk involved in such transformations. The agility of the team was paramount in quickly actualizing the new strategy.
Futureloop's successful transition from B2C to B2B wasn't just a win for the company—it also represented a milestone in my professional growth. It's a testament to the power of user feedback, the willingness to pivot, and the courage to validate business ideas through bold moves. For all other entrepreneurs contemplating a similar shift, remember this: listen, pivot, validate, and never be afraid of challenging the status quo.