Sometimes, you learn that your company needs to pivot not by looking at the books, but by listening to your customer. Bill Gross, founder of Idealab, tells in this Entrepreneur Thought Leader Lecture, given at Stanford University, how he learned this lesson.

Before Idealab, Gross started Knowledge Adventure, an educational software company. Employees once served as “weekend warriors” demonstrating products in retail outlets, where they learned the hard way that they weren’t targeting properly. With the pivot came success.

(Can’t see the video? Click here.)