It’s a big risk to reinvent your business, especially after years of building a brand. However, a few adjustments to the business model can help create new markets or revive interest in your product. How to do this without totally throwing your business into a tailspin? Here are some tips.
Assess the timing
It’s like the seven year itch. The first three years of a business, entrepreneurs are busy just getting things rolling. After that, they spend another three years growing the business. But then their profits plateau, or they get bored and want another challenge.
But you can’t just shake things up because you feel restless. Base your business decisions on the market: consumer behavior, trends, the economy. Also look at your own risk tolerance and cash flow: how much you can afford to put into the business, etc.
Identify the areas to change
Don’t change everything. Focus on key areas tha can be improved or have the potential to make the biggest difference in your company’s performance. And no matter what you change, stay true to your core competencies. Stick to what you’re good at. Creative entrepreneurs have a lot of great ideas but you need to focus on something, at the risk of spreading yourself and your company resources too thinly.
Create a business plan
All change requires a business plan. Yes, we know you already have one, but when you make any sort of tweaks to a business model you need to pretend that you’re starting from scratch. Once again, review your strategy versus competition, your company goals, your resources, and your operations. It helps to discuss the business plan with your partners or mentors to get feedback.
Allow for transitions
Expect some ‘growing pains’ as you switch from the old model to the new model. Give allowances for renegotiating contracts, retraining employees or hiring new ones. Talk to stakeholders about your plans, too—in order to get them excited about the new opportunities as well as prepare them for the inevitable bumps in the road.
Photo from sofi-software.com