What Kent Goldman, First Round Capital says about topics vital to entrepreneurs
Kent Goldman Partner First Round Capital
“Pivoting is one of the most critical challenges a business can face.  [Pivoting is] what you do when you’ve built everything according to plan and yet, the business and users aren’t materializing according to plan.
Pivoting is a good thing. It is the outcome of learning about your business and adjusting. The best run start-ups do this every day but they do it a little bit at a time.  [They see smaller pivots] so often, they rarely realize that they are pivoting. Instead, they are simply operating. It’s the more dramatic pivots which are more challenging, require greater commitment and longer runway.
 Knowing when to pivot starts with knowing the milestones . [We] believe the purpose of a seed stage investment is to prove / disprove / refine a thesis so we always work with  founders to outline the milestones they want to achieve with their financing. This is a living document [not to be considered as] absolutes and deadlines, but  provides markers against the original assumptions. As the progress against the milestones occurs, we look to understand both what is / what is not working and why[, revisit original] assumptions and ask what [was] learned. Together with the founders we ask, “Knowing what we know now, what would we do differently?” and “What can we do with the cash we have left?”
 It’s critical to make a pivot when you still have runway .  Plan your pivot with enough time to show genuine progress against  new milestones.” Kent Goldman This Just Ain’t Gonna Work Out, March 1, 2010; http://thecornice.com/2010/03/01/this-just-aint-gonna-work-out/