Lesson 15: Stories Evolve

Stories Evolve With Growth

It’s important to discuss what happens to your story when you pivot. Coined by Eric Ries in The Lean Start-up, “a pivot is a special kind of change designed to test a new fundamental hypothesis about the product, business model, and engine of growth.” Pivoting is so common among early-stage start-ups that it is basically a rite of passage for entrepreneurs. Virtually everyone who’s started a company has a story about the time that the company became a different company.

Products change, target markets narrow, and your original goal might have to shift as your company matures. Remember the North Star example from earlier? Regardless of your pivot, your company may fundamentally stay the same. You might be solving the exact same problem with a slightly different approach. Delivering the same value a different way means that North Star didn’t change. In that case, the changes to your story will be minor and your audience might not even notice the difference. Larger pivots will require more significant changes to your story. 

It’s also possible that your pivot requires a new brand archetype. In that scenario, it’s more likely that the brand archetype you originally picked didn’t match your company. Be sure that you match the archetype to the company and not the other way around. Archetypes are very resilient to smaller pivots. An appropriate archetype should match your broader mission and remain constant, even if you have a few pivots. Each archetype has several sub-archetypes that can be helpful if you’re struggling to find a match. Think hard about your goals and your broader mission and you’ll find the right fit. Once you do, you’ll be able to craft that compelling message that turns heads.

When you consider a company pivot, here are some helpful guidelines:

• Focus on what you have. If there’s one part of your business that isn’t performing well, there might be another side that’s doing extremely well among your customers. Focus on the wins and figure out how to build upon them. 

• Cut your losses. Even if they’re in love with their original business idea, smart entrepreneurs must realize they can’t keep pursuing it if it’s not making money. 

• Follow the money. Ultimately, your business needs to be profitable if it’s going to survive. When faced with reality, hypotheticals and ideals must be discarded. Instead, focus on where you can generate the most revenue.

It’s difficult to pause and take a moment to reflect when you’re running a start-up. Work needs to get done, new candidates need to get hired, and products need to ship. Regardless of your schedule, you do need to take the time to reflect. Analyse your company’s progress and keep evolving your story. Communicating with your audience isn’t a one-time event. You need to keep communicating your story to investors, customers, and future customers. After your fundraising round is done, keep investors engaged (you may be coming back soon for your next round). You can also use your audience to evangelize your company and raise awareness. Remember: your audience is always eager to read the next chapter of your story. 

1)  Eric Ries, The Lean Start-up: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (New York: Crown Business, 2011), p. 178.