Whilst businesses can often easily adapt their core model in response to changing demands or events it is more challenging to know when they might need to significantly transform their original model. Changing your business model can breathe new life into your business and shows that you are responding to customer needs and demands.
Signals that tell you when you need to change your own model
We came across this article recently on the Strategizer website which offers an insight into things to watch out for that signal a need for a change in business model or value proposition. The article describes 6 key situations that may indicate a need to take a more radical approach to your model:
1. You don’t generate enough traction from the customer you targeted
2. Your value proposition doesn’t resonate with customers
3. Your acquisition & retention strategy doesn’t generate the growth you hoped for
4. Customers are not willing to pay the price
5. You can’t build the product and/or your costs are too high
6. External forces are threatening your business model
