Presentation made by Amit Kumar Head of OLX Autos to 3000+ Startup entrepreneurs of I Hubx Gujarat. This presentation gives a methodology for building a startup and pivoting at appropriate times, while keeping the vision in mind.

1. Pivot your startup
Fail early fail fast
1
Amit Kumar
13th October 2020

2. 2
Who am I?
B.Tech. IIT Bombay 2006;
MBA ISB Hyderabad 2010
https://in.linkedin.com/in/execamit
https://medium.com/@execamit
Over a decade in building businesses and helping startups like yours
● Experience in FMCG, Telecom and Marketplaces
● Specialize in building businesses grounds up
● Understand product categories: Fashion, Electronics, Automobiles,
Foods & telecom
Personal
● Avid reader on Evolutionary psychology, Sociobiology
● Like to Swim, play tennis
● Son, Husband & Father of 2 chirpy kids

3. 3
Questions bubbling in your mind?
No question is a stupid question, Only an answer can be 
Please put your questions in Chat.

4. Pivot your startup
Fail early fail fast
4

5. Pivot your startup
Fail early fail fast
Learn Fast
5

6. Our learning journey for 120 mins = 72,00 sec.
1. Understanding the need for a pivot (30 mins)
How some of the well known success stories in the
start-up world started
2. Identifying the need of a pivot? (30 mins)
3. How to Pivot? (30 mins)
Case study (Votizen)
Questions and Answers !!! (30 mins)

7. Why is this topic relevant?
There is a long distance between ideas and success

8. Why is this topic relevant?
There is a long distance between ideas and success
https://www.techyv.com/tips/top-10-things-that-you-would-have-not-known-about-youtube/

9. Why is this topic relevant?
There is a long distance between ideas and success
https://www.cbinsights.com/research/startup-pivot-success-stories/

10. Why is this topic relevant?
There is a long distance between ideas and success
https://en.wikipedia.org/wiki/List_of_most-viewed_YouTube_videos
Most famous video on Youtube has
7B views.

11. Another Pivot, This is Indian !!!
https://archive.org/web/ Search for snapdeal.com

12. Why is this topic relevant?
There is a long distance between ideas and success
https://www.youtube.com/watch?v=AbMWfgQ4t1c

13. Story of Snapdeal Pivot!!!
From Group deals
 Group Deals Market in India has low ticket sizes
 Customer experience dependent upon service
providers
“If you pay less, You get less”
To Full fledged eCommerce
 Ecommerce was the talk of the town
 Globally proven, Much bigger market
 If you can get money, why not go for it!!!
And the journey goes on…

14. Lets reverse the quiz!!!
https://medium.com/@iMohammadFaraz/the-success-story-of-instagram-

15. From Fine whiskies to Photo sharing
https://medium.com/@iMohammadFaraz/the-success-story-of-instagram-

16. To USD 1 B valuation in 2 years 2012
 Photo and video-sharing social media application that
was launched in 2010 by Kevin Systrom.
 The first prototype of Instagram was a web app called
Burbn, which was inspired by Systrom's love of fine
whiskeys and bourbons.
 The Instagram app was launched on Oct. 6, 2010, and
racked up 25,000 users in one day.
 From the beginning, the primary focus of the app was to
feature photographs, specifically those taken on mobile
devices.
 Just prior to Instagram's initial public offering (IPO)
in 2012, Facebook acquired the company for $1
billion in cash and stock.
https://medium.com/@iMohammadFaraz/the-success-story-of-instagram-
5635b2e9c7ff

17. Every entity pivots:
Government of India !!!
https://scroll.in/article/930982/july-19-1969-fifty-years-ago-india-nationalised-14-private-banks-this-is-how-it-was-done

18. 1991 reforms are
the landmark pivot
in the Indian
economic history
Source: Economictimes newspaper

19. Our learning journey for 120 mins = 72,00 sec.
Change is the only constant in our lives
1. Understanding the need for a pivot (30 mins)
How some of the well known success stories in the
start-up world started
2. Pivot Gyaan !!! (30 mins)
3. How to Pivot? (30 mins)
Case study (Votizen)
Questions and Answers !!! (30 mins)

20. Thank you Professor Hammoud
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html
Fantastic course material on
entrepreneurship.

21. Why are you Interested in Entrepreneurship?
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

22. • Three major schools of thought:
1. “Just Do It”
• Most entrepreneurs are wary of implementing traditional management
practices, afraid that this will invite bureaucracy or stifle creativity
• They assume management is the problem, hence, chaos is the answer
• Unfortunately, this approach leads to chaos more often than it does to success
2. “Launch a Rocket Ship”
• Specify every single step to take in excruciating details (typically by tapping
into a proven set of techniques used for managing big companies)
• Specify the expected result of every single step taken– what happens if a tiny
error occurs? Can you adapt or pivot?
School of Thought in Entrepreneurship
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

23. 3. “Drive a Car”
• Set a (hypothetical) path to reach a destination (you are not sure whether
this path will lead to the destination)
• Experiment with and validate your path
• Persevere, adapt, or even pivot if needed
• If you are driving to work, do you give up if there is a detour in the
road or you made a wrong turn?
• No, you remain thoroughly focused on getting to your destination
School of Thought in Entrepreneurship
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

24. 10
Idea
9
Team
8
B M
6
Funding
10
Timing
8
Idea
9
Team
5
B M
4
Funding
9
Timing
8
Idea
10
Team
7
B M
7
Funding
10
Timing
SucceededRanks over 10
[Based on a study by IdeaLab]
What makes a startup succeed
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

25. [Based on a study by IdeaLab]
14%
24%
28%
32%
42%
Factors of
success
across
more than
200
companies
Time
Team &
Execution
Idea
Business
Model
Funding
What makes a startup succeed
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

26. Idea
Build
Product
Experiment
Data
Learn
Method to the madness!!!
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

27. What is a Pivot?
Pivot is a structured course correction
designed to test a new fundamental hypothesis, about
the
 Product
 Business model
 Engine of growth
Pivot or Persevere ?
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

28. When to Pivot?
 One piece of business really stands out
 Existing Business does not make money
 Market response below expectations or unanticipated
 Competition outperforming you always
 You want something else
https://blog.hubspot.com/sales/pivot-startup#:~:text=A%20startup%20pivot%20occurs%20when,change%20in%20its%20business%20model.
https://www.startups.com/library/expert-advice/startup-business-pivot

29. Different types of Pivot
 Pivot in your existing business
 Reposition your product
 Do something entirely new
https://appinventiv.com/blog/startup-pivot-guide/

30. How to Pivot
 Develop prototype before Pivot
 Pick goals aligned with vision
 Your pivot must give you growth opportunities
 Consider alternate technology
 Keep investors informed
https://appinventiv.com/blog/startup-pivot-guide/

31. Pivot vs Persevere: A personal framework

32. https://www.youtube.com/watch?v=kddld-SS7lw

33. Our learning journey for 120 mins = 72,00 sec.
Change is the only constant in our lives
1. Understanding the need for a pivot (30 mins)
How some of the well known success stories in the
start-up world started
2. Pivot Gyaan !!!(30 mins)
3. How to Pivot? (30 mins)
Case study (Votizen)
Questions and Answers !!! (30 mins)

34. Votizen case study !!!
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

35. • In 2009, David Binetti started Votizen, a specialized social
network for verified voters to learn about political issues and
take collective actions
• David built an MVP that costed over $1200 in ~3 months and launched it
with an attempt to test 4 major leap-of-faith assumptions
1. Customers would be interested in Votizen and sign up
• Defined metric: registration rate
2. Votizen will be able to verify them as registered voters
• Defined metric: activation rate
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

36. • In 2009, David Binetti started Votizen, a specialized social
network for verified voters to learn about political issues and
take collective actions
• David built an MVP that costed over $1200 in ~3 months and launched it
with an attempt to test 4 major leap-of-faith assumptions
3. Verified customers would engage over time
• Defined metric: retention rate
4. Engaged customers would invite friends to join them into civic causes
• Defined metric: referral rate
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

37. • Three months after launching, the results were very low
• David spent another $5000 optimizing and split testing the usability
aspects of the platform
Initial MVP
Registration Rate 5%
Activation Rate 17%
Retention Rate Too Low
Referral Rate Too Low
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

38. • Two months after these optimizations, the results improved
• David knew he had to do more; hence, he talked to more customers,
held focused group discussions, and did countless A/B experiments
Initial MVP After Optimization
Registration Rate 5% 17%
Activation Rate 17% 90%
Retention Rate Too Low 5%
Referral Rate Too Low 4%
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

39. • Three months later, the results nudged up only slightly
• The platform was not living up to the growth model David has hoped for!
• Time to pivot or persevere
After 1st Optimization After 2nd Optimization
Registration Rate 17% 17%
Activation Rate 90% 90%
Retention Rate 5% 8%
Referral Rate 4% 6%
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

40. • David’s direct contact with customers provided the following feedback:
1. “I always wanted to get more involved; this makes it so much easier”
2. “The fact that you prove I’m a voter matters”
3. “There’s no one here. What’s the point of coming back?”
• David decided to undertake a zoom-in pivot, refocusing the platform on
what previously was considered a feature of a larger whole
• Customers can contact elected representatives digitally
• Votizen translates that digital contact into old-fashioned printed letters and
petitions, and mails them to representatives at Congress
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

41. • Four months later and another $30,000, the results improved
• David was stuck in an age-old entrepreneurial trap- i.e., metrics and
product were improving, but not fast enough!
Before Pivot After Pivot
Registration Rate 17% 42%
Activation Rate 90% 83%
Retention Rate 8% 21%
Referral Rate 6% 54%
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

42. • David decided to undertake a customer segment pivot, keeping the
functionality of his platform the same but changing the audience focus
• He contacted large companies and professional fundraisers who have
professional or business interests in political campaigning
• The companies seemed extremely eager and David quickly signed Letters-of-
Intent (LoI) to build the functionality they needed
• On the basis of LoI, David increased his head count and built all the
required functionality in 3 months
• David went back to the companies, but none of them closed a real sale!
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

43. • David decided to fire some staff and undertake a business-model pivot,
allowing anyone to become a paid customer with just a credit card and
rally any group of people
• One month later, metrics started increasing
Before 2nd Pivot After 2nd Pivot
Registration Rate 42% 51%
Activation Rate 83% 92%
Retention Rate 21% 28%
Referral Rate 54% 64%
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

44. • Votizen’s system can now process voter identities in real time for > 47
states and has delivered 10s of thousands of messages to Congress
• The Startup Visa campaign used Votizen’s tools to introduce the Startup
Visa Act (S.565)
• This was the first legislation introduced into the USA Senate solely as a result of
social lobbying
• On January 10, 2013, Votizen was acquired by Causes, an online civic
engagement platform founded by Sean Parker
Case study: Votizen
https://web2.qatar.cmu.edu/~mhhammou/15390-s18/lectures.html

45. 45

46. https://www.slideshare.net/ProductPlan/lean-validation-10-ways-to-quickly-test-your-startup-idea/18

47. 47

48. Lets keep in touch
(Code word:
ExecAmit)
Happy to help!!!
ExecAmit@gmail.com
https://in.linkedin.com/in/execamit
https://twitter.com/execamit