10 Signs that it is time to update your business model

In simple words, a business model is the way in which a company creates, delivers, and captures market value. There are different tools to study business models but the most popular one is the Business Model Canvas (BMC) created in 2008 by Alexander Osterwalder (business scientist and co-founder of Strategy); who developed a tool to facilitate the analysis and visualization of business models.

Since then the BMC has enjoyed wide acceptance thanks to its straightforward approach to summarizing and visualizing different strategic decisions. Proof of the popularity of the tool are the 209 million results that are displayed on Google when a search is made for the tool.

Change is natural, and in the business world, it happens constantly. Different factors impact and change the structure of the industry and that of the markets. That is why companies must be alert and adjust their business models when necessary.

Regardless of the exchange rate, or its impact, these should be carefully planned and executed. But how do we know if the company is ready to evolve?

Below we share some signs that indicate that it is time to adjust the business model.

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

The desire for the company to meet new levels of performance and profits requires change and adaptation. It is necessary to get out of the comfort zone, leaving behind the routine and old habits. It is inevitable to achieve a change of mentality, where all the members share the importance of evolving and leave aside the resistance in changing what is required to achieve success. Answer: What is important that we change to be better?

2. Market needs are constantly changing

 As market needs evolve, the business must adapt to meet the changing needs of customers. As the Fourth Industrial Revolution progresses, disruptive changes will be created, which in turn 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!

<< ASSESS YOUR BUSINESS MODEL AND VALUE PROPOSITION WITH THIS GUIDE >>

3. Change of attitude to continue delighting your customers

Like technology, the needs and expectations 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 its segment to a niche of its current customers who still want their product or service as it is. However, we assure you that you will have fewer and fewer clients, in addition to being on the "right path" for your company to succumb.

4. Most of the time is extinguishing 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? Does your income decrease 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 know the market trends? If you answer yes to one or more questions, we recommend getting external support from reliable consultants and becoming aware that it is time to take action.

6. Your business no longer grows

The growth of profits and the return on equity are an indicator that what you are doing works. The moment the company decreases, it must change course. Becoming a fan of your key measures ensures that you always know how your business is healthy. Make the necessary changes to increase either the productivity, efficiency or income of the company.

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

The clearest sign that a business needs to change is when the same things are always done, and the usual results are no longer obtained. Against this background many organizations make the mistake of increasing efforts; However, doing the same things repeatedly hoping to get different results is crazy!

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

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 them with unparalleled experiences. Encourage a culture open to change, where the formulation of creative ideas is encouraged. However, if your company already carries out these actions and still your key indicators of success do not improve, it is time to conduct a deeper analysis.

10. Your offer is already relevant to us

In the current economy of experiences, you must understand the needs and expectations of your customers and how they evolve. Never stop surprising them. To achieve this, you are making the necessary adjustments in your business model. If you are not willing to evolve very soon, it will no longer be relevant to your customers.

Different tools facilitate customer analysis, business models and make it easier to make innovations in your business.