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How Smart Founders Know When to Pivot or Shut Down Their Startup

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Key Takeaways Discover a simple framework that keeps your startup on track without letting ego take over.

Learn how top founders turn uncertainty into clear, actionable decisions.

Have you ever wanted to launch a successful startup? Maybe you’ve thought about an idea that can solve a problem or make a small difference in the world. The truth is, ideas are everywhere, and starting a business today is easier than you think.

Today’s startups look very different from the ones in the 90s, when even a basic phone system could cost tens of thousands of dollars. AI and outsourcing make it faster and cheaper to launch a business than ever before.

When I first decided to start a small business right out of college, my classmates thought I was crazy. “Become a lawyer,” they said. “You’ll make a lot more money.” I worried that if I launched and failed, it would be humiliating. But I told myself, “What do I have to lose anyway?” My first business lasted 14 months before I had to shut it down, but it generated enough money to launch my second company.

Since then, I have started dozens of companies, some successful and others spectacular failures. One flop was Shareholder Blockchain. I invested $50,000 to build an MVP in 120 days, hired a lawyer and two programmers, and went to work. When I returned for a demo, the team had gone in a completely different direction and was floundering. Within 24 hours, I shut it down. That failure taught me the power of defining checkpoints before emotion takes over.

Related: The Art of Navigating ‘No’ — When to Persist, Pivot or Give Up and Pack it In

In my book Start. Scale. Exit. Repeat. I introduce the concept of “Stage Gates,” a S.M.A.R.T. checkpoint in time. Why use this framework? Because it is Specific, Measurable, Attainable, Relevant and Time-bound. If we don’t measure progress, we can’t succeed. At a college incubator in South Florida, I ask students to define a stage gate. I am very specific: “By Jan. 31 at noon, deliver an MVP that you can pitch to customers and investors.”

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