The bottom line about this one is that business models aren’t static and should evolve as your business and market conditions change. Regularly revisiting and updating your business model demonstrates adaptability and helps you stay responsive to market dynamics, customer needs, and emerging opportunities. It’s important to strike a balance between stability and agility, ensuring that your business model remains a strategic asset that supports your growth and success.
This is a question my clients ask me often and to be honest there’s no right or wrong answer. Personally, I make a point of re-visting my business model every year. In the month of October, I take 3 days out, away from the office and go deep on my business model and value propositions. It’s time really well spent for me.
The frequency at which you should revisit your business model depends on various factors, including the nature of your industry, the pace of market changes, and the growth stage of your business. There is no one-size-fits-all answer, here are a few considerations to help you determine when to revisit and update your business model:
1. Significant Market Changes: If there are significant changes in your market, industry, or competitive landscape, it’s important to reassess your business model. This could include shifts in customer preferences, emerging technologies, regulatory changes, or disruptive innovations. Keeping a pulse on market dynamics and proactively adapting your business model can help you stay ahead of the curve.
2. Business Milestones or Growth Stages: Revisiting your business model can be beneficial at key milestones or growth stages of your business. For example, when you’re entering a new market, launching new products or services, expanding geographically, or experiencing rapid growth, it’s important to evaluate if your current business model is still aligned with your goals and capable of supporting your growth trajectory.
3. Feedback from Customers and Stakeholders: Regularly gathering feedback from your customers, partners, employees, and other stakeholders can provide valuable insights into potential areas for improvement or necessary adjustments to your business model. If you consistently receive feedback or observe patterns indicating the need for changes, it may be time to revisit and refine your model accordingly.
4. Financial Performance and Profitability: If you notice declining financial performance, decreasing profit margins, or challenges in generating revenue, it may indicate that your business model needs to be re-visited. Analysing financial metrics and conducting a thorough evaluation of your revenue streams, cost structure, and value proposition can help highlight/identify areas for improvement and optimisation.
5. Planned Strategic Reviews: It can be helpful to schedule regular strategic reviews of your business model, such as annually or bi-annually. This ensures that you proactively set aside time to assess the effectiveness and relevance of your current model and make necessary adjustments to stay aligned with your long-term vision and goals.
Remember that business models are not static and should evolve as your business and market conditions change. Regularly revisiting and updating your business model demonstrates adaptability and helps you stay responsive to market dynamics, customer needs, and emerging opportunities. It’s important to strike a balance between stability and agility, ensuring that your business model remains a strategic asset that supports your growth and success.
Is it time to re-visit your business model? If so, why not do it the way I do and take yourself out of the work environment for a couple of days with a clear head and fresh eyes?
Would you like help to ‘Get comfy and confident on LinkedIn’ or to ‘Get your website looking and sounding like the real you’? Yes? Then book a chat directly in my diary. That way we can have a virtual coffee together to see if/how I might be able to help you. The call will cost you absolutely nothing, you’ll be under no obligation to do anything further AND I GUARANTEE you’ll get value from our call – otherwise I’ll pick up the tab for the virtual coffees 😂