7 Signs Your Business Model May Benefit From an Overhaul
One of the more difficult things an entrepreneur must do is be aware of company and industry trends and pivot their business when necessary. Even the most successful and profitable businesses will modify their business model, processes and goals to remain relevant and stable. Waiting too long or deciding to “ride out the storm” can be detrimental; potentially bringing you to the brink of instability from which your company may not recover. Changing does not mean your business is failing; it means you are engaged and aware enough to understand the nuances and want to make sure that you, your employees and your customers continue to get what they need from your business for years to come. Here are some signs you may have to consider pivoting:
- Sales are stagnant or declining. – Do you know why? Inaction? Lack of insight? Quality decline? Outdated strategy? This may be the biggest, brightest, most evident sign you need to pivot. Take some time to create an honest assessment of your business.
- Competition has changed and so have your differentiators. – But you aren’t aware of it, or you haven’t changed your language to communicate your differentiators clearly.
- The business is less profitable because you are closing based on price (reducing price to get sales).- Because your language has not changed, the only differentiation that a business that is in a desperate state to close sales turns to is price.
- Market/ industry requirements have changed. – Are you offering analog product in a digital age?
- Your employees are less engaged, and productivity is down. – Employees are not “resources” they are your biggest insight into the day to day temperature or pulse of the market. If you aren’t listening to their feedback and complaints, you are ignoring valuable research. And they will eventually stop talking and may even leave.
- Previous marketing campaigns that were successful are no longer successful. – What worked in the past will not always work…and you are seeing that first hand. Time to re-evaluate your marketing strategy.
- Strategic meetings have become a review of you or yours managers’ to do lists. – What’s the status on this initiative? Where are we on that report? You are no longer talking strategy, you are reacting to business issues.
Identifying the signs that your business model (and business plan!) has to change can be challenging. An experienced business consultant can help you realize changes in the industry, weigh opportunities and evaluate your business to ascertain where to pivot for the biggest return and to help you reach your goals. Contact us for a consultation!