12 signals that tell you it's time to update your business model

Posted by Fernando Solano on Jul 23, 2019 12:25:48 PM
Fernando Solano

Change is natural and in the business world, happens constantly. Different factors impact and change the structure of the industry and markets, generating pressure for companies to be vigilant and change the focus of their business when necessary. The size of the changes that companies must make to maintain or improve their position does not matter, however, these must be planned and executed carefully. The thing is, how do you know that the company is ready to evolve?

Below we share 12 clear signals that indicate that it is time to change your business model.


1. Make the best - and strongest - version of the business.

A company's desire is to meet new levels of performance and profits, which requires change and adaptation. Additionally, it is necessary to leave behind the routine and old habits. It is also inevitable to achieve a change of mentality if all members share the importance of evolving and do not present resistance in doing what is required to achieve success. Make decisions answering the following question: What is it important that we change to be better?


2. Market needs are constantly changing.

As market needs evolve, the business must adapt to meet changing needs. As the Fourth Industrial Revolution progresses, disruptive changes will be created, facilitated by new technologies. This, in turn, will enable the development of new business models. Keep your attention on the needs of your customers, the evolution of your industry, and technology changes so you can take advantage of the opportunities being a disruptor!


3. Change of attitude to continue delighting your customers.

Like technology, the needs of your target market are constantly changing. If your customers want to be served differently, you must adapt. Maintaining an attitude of "this is how we have always done it" will narrow your target segment to a niche of its current customers who still want your product or service as it is. However, there will be fewer and fewer customers and it is the fastest way for a company to succumb.


4. Most of the time you extinguish fires.

Do you feel that you and your team members spend most of the time putting out fires? Do you feel that the days end without making significant progress in generating a competitive advantage? If so, it is a clear sign that it is time to examine, make decisions and plan change strategically.


5. The motivation of your employees, the efficiency of your processes or your income, are decreasing.

Is the demotivation of your collaborators increasingly noticeable, and are your processes increasingly inefficient? Is your income decreasing instead of growing? Do you find it increasingly difficult to retain your employees? Is your company's culture becoming too rigid? Is your company's performance low? Don't you know the market trends? If you answered yes to one or more questions, we recommend getting external support from reliable consultants and becoming aware that it's time to take action.


6. Your business no longer grows.

The growth of profits and the return on equity are indicators that what you are doing works. The moment these indicators decreas, you must change course. Becoming a fan of your key measures ensures that you know at all times how your healthy your business is. Make the necessary changes to increase either productivity, efficiency, or company revenue.


7. What succeeded for you in the past no longer seems to work.

The clearest sign that your business needs to change is when the same things that have always been done are done (and that in the past generated successful results), and the desired results are no longer obtained. Against this background many organizations make the mistake of increasing efforts, however, doing the same things over and over again hoping to get different results is crazy!


8. You are not able to see a viable route for further growth.

Successful companies always fight to grow. Growth can be measured either by income, return on equity, or  by increasing efficiency. If you are unable to visualize a viable route of growth, it is time to consider changes in your business model.

9. Your suppliers and collaborators leave you.

Pay special attention to serving your customers without forgetting that you must maintain excellent relationships with your suppliers and collaborators. Know what each group values, and stay ahead of your competition delighting us with unparalleled experiences. Encourage a culture open to change, where the formulation of creative ideas is stimulated. However, if your company already carries out these actions and still your key indicators of success do not improve, you should probably change your business model.


10. Your offer is no longer relevant.

Understand the needs of your customers and how they evolve. Never stop surprising your consumers! To achieve this,  make the necessary adjustments in your business model. If you do not make the required changes soon, you will no longer be relevant to your customers.


11. You're bored.

When boredom shows up and you no longer feel that your business motivates you, it is time to do an internal analysis understanding why you're bored. What is changing in the company? Many times processes or opportunities cause change. Do not worry. Occupy yourself by making the necessary changes that will give you back the motivation and allow you to make the right decisions to make the company successful.


12. Your intuition indicates it.

The best part of the business world is the ability to create something that aligns with the founder's natural gifts and way of being. We all evolve, which means that our companies must evolve along with us. When your intuition tells you that it's time for your business to follow you, listen. The more aligned you are with your business, the greater the success it will have.

 

 

Topics: business models, strategy

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