A startup pivot occurs when a company shifts its business strategy to accommodate changes in its industry, customer preferences, or any other factor that impacts its bottom line. It’s essentially the process of a startup translating direct or indirect feedback into a change in its business model.
A startup pivot occurs when a company shifts its business strategy to accommodate changes in its industry, customer preferences, or any other factor that impacts its bottom line. It’s essentially the process of a startup translating direct or indirect feedback into a change in its business model.
Contents
- 0.1 Examples of pivoting a startup are
- 0.2 If a startup wishes to change its business objectives it can do by following these steps
- 0.3 🚀 Why Change Your Business Objective?
- 0.4 📋 Step-by-Step Guide to Change Business Objective (India – Companies Act, 2013)
- 0.5 ✅ 1. Board Meeting
- 0.6 ✅ 2. Draft the New Main Object Clause
- 0.7 ✅ 3. Call and Hold an EGM
- 0.8 ✅ 4. File with RoC (Registrar of Companies)
- 0.9 ✅ 5. Get Approval and Updated Certificate
- 1 📑 Documents Checklist
Examples of pivoting a startup are
1. Turning one feature of a product into the product itself, resulting in a simpler, more streamlined offering
2. Product is turned into a feature of a larger suite of features as part of another product
3. Focusing on a different set of customers by positioning a company into a new market or vertical
4. Changing a platform, say, from an app to software or vice versa
5. Employing a new revenue model to increase monetization
6. Using technology to build a product, often to cut down on manufacturing costs or create a more reliable product
Therefore it is commonly seen that sometimes startups tend to succeed on a completely different path than they had initially embarked on. Often, even their products change drastically.
Being dynamic lies at the heart of being a successful startup. One needs to adapt to changes and seize opportunities to maximise profit. This means having to constantly review one’s goals and objectives. Goals tend to change over time and so do the methods of achieving them.
If a startup wishes to change its business objectives it can do by following these steps
1. Test your Ideas
A startup should prepare a new business plan that includes target users, challenges and revenue sources. It should test its new ideas the results would determine the alterations that can be made in the idea. For example — if a startup wishes to target a new market including virtual one so it needs to do a lot of experimentation.
2. Review your goals periodically
Reviewing goals comprises of deciding where to spend money, or which new strategy needs to be adopted. A startup should review its strategies periodically as it helps in cutting losses and opportunity costs.
3. Set goals
Keeping in mind that financial resources that a startup possess it should set up its goals. Goals need to be realistic and should be made after proper analysis.
4. Ensure Flexibility
Evaluating changes in output can help the startup to focus on the gaps and determine where actually the changes can be made. Therefore it is important to be open and flexible and constantly revising goals and responsibilities.
Setting goals too low or too high can both be disadvantageous. A startup usually has innovative minds and high spirits. It is important to keep the culture of innovation alive. Revisiting goals from time-to-time, thus, helps maintain a competitive edge.
Pivoting your startup? That’s a bold and often necessary move—especially in fast-moving markets. But it’s not just about changing what you do; it also means legally updating your business objective, particularly if you’re a registered entity like a Private Limited Company in India.
Here’s exactly how to change your business objective during a startup pivot:
🚀 Why Change Your Business Objective?
Your company’s object clause in the Memorandum of Association (MoA) defines what you’re legally allowed to do. If you’re pivoting (e.g., from EdTech to SaaS, or D2C to AI solutions), your existing objective may no longer match your new direction.
To:
- Stay compliant
- Raise funds
- Enter into valid contracts
You must update your MoA to reflect the new purpose.
📋 Step-by-Step Guide to Change Business Objective (India – Companies Act, 2013)
✅ 1. Board Meeting
- Pass a board resolution to:
- Approve the change in business objective
- Call for an Extraordinary General Meeting (EGM)
✅ 2. Draft the New Main Object Clause
- Clearly define your new business purpose
- Ensure it’s specific, yet broad enough for future flexibility
📌 Example (Old):
“To provide online coaching for competitive exams”
📌 Pivoted (New):
“To develop and provide AI-driven educational technologies and enterprise software solutions.”
✅ 3. Call and Hold an EGM
- Send notice to shareholders (at least 21 days prior)
- Pass a Special Resolution under Section 13 of the Companies Act
✔ Requires 75% approval of shareholders
✅ 4. File with RoC (Registrar of Companies)
- File Form MGT-14 within 30 days of passing the special resolution
- Attach:
- Certified copy of Special Resolution
- Altered MoA (showing new object clause)
- EGM minutes
✅ 5. Get Approval and Updated Certificate
- Once approved, the RoC will update your company records
- Your MoA now reflects the new object clause, legally allowing your pivot
📑 Documents Checklist
| Document | Purpose |
|---|---|
| Board Resolution | Approval to change objective + EGM call |
| New Object Clause | Updated draft of business objective |
| EGM Notice & Minutes | Shareholder meeting documentation |
| Special Resolution | Legal basis for the change |
| Form MGT-14 | Filed with RoC within 30 days |
🔍 Tips for a Successful Pivot
- ✅ Make the new object forward-compatible (add scope for future growth)
- ✅ Ensure co-founders and investors agree on the change
- ✅ Communicate the pivot clearly to employees, customers, and partners
- ✅ If raising funds post-pivot, make sure pitch deck and company filings match
💡 Example: Startup Pivot Scenarios
| Pivot Type | Action |
|---|---|
| EdTech → HRTech | Modify object to include workforce or enterprise solutions |
| Crypto → AI Analytics | Replace financial services language with AI/data-specific objectives |
| Logistics → SaaS | Update from physical delivery to software development and licensing |
🧭 Final Thought
Pivoting is evolution, not failure — but your legal foundation must evolve too. Changing your business objective ensures that your startup is compliant, investable, and future-ready.
Would you like:
- A sample object clause for your new vertical?
- Help drafting the board or shareholder resolution?
- A legal template for Form MGT-14 submission?
Just ask—I’m here to help!