You may want to sell to new markets, change how you operate, or switch up your products or services, and for that, your business model will need to change. But what should you be thinking about before switching things up?
Here are four top considerations from Stefanie Neyland, a small business content developer at BizLaunch.
Change can be good
Entrepreneurs tend to think about changing their business model when they’re struggling. The beauty in this is that feeling backed into a corner forces you to try new things. Try to relish the challenge that change brings and look to the future to consider the potential of your business as it evolves.
Understand why change is necessary
Before you change anything, it’s important to take a step back, evaluate your business’ current state and figure out why changing direction is needed. If the need for change comes from economic or market conditions, question how and why competitors in your field are managing to survive. Insights from your employees, customers and even suppliers can be valuable when trying to determine why a new direction is needed.
Your customers should be the drivers of change
“It’s important to be in tune with your industry and customers so you can see trends coming—ideally before they happen,” says Andrew Patricio, founder and CEO of BizLaunch, “this will enable you to adapt your business accordingly.”
Andrew also adds that your customers should always be at the front of your mind when it comes to deciding how your business will continue to give them the products and services they need. “Your customers should always be the drivers of change in your business.”
Research is key
Change comes with risk. So researching like crazy and doing as much planning as possible are necessary. “Before making any changes to your business model it’s important to conduct market research,” Andrew explains, “It’s also wise to take some time to prepare a thorough business plan that outlines your new direction, your goals, and how you plan to achieve them.” Andrew recommends that entrepreneurs revisit this document on a regular basis.
Need a little help making a new business model? Feel free to use our handy template. And if you’re looking for more business-related resources, check out our business learning section for more advice and information on all things business!