Business models must not remain fixed

The business model is the backbone of a business project, but its boss must constantly adapt it to market movements. This essential approach depends on the agility of the management team and its partners.

The business model – with its concrete declaration, the business plan – constitutes the roadmap for any business, but it must under no circumstances stand firm. “The implementation of the business model rarely goes as planned by managers, warns Fabrice ImbaultCEO ofA Plus Finans, a management company specializing in investing in SMEs. Development may be faster or slower than expected. ”

Encourage investors

Therefore, adjustments are likely to occur a year or two after creation. “In some cases, the company does not get a positive return from the market after the start-up phase,” says Fabrice Imbault. Major changes are then necessary: ​​modify and / or reconsider the product and service offer, redirect the target customer (s) …

But more generally, changes to business model rather, they are associated with a slower increase in the production of goods or services and / or delays in marketing. A new round of tables is so often necessary. “If the business plan is respected, but if delays have occurred, it is possible to encourage historical investors or new investors to take the time to bring in revenue,” explains Fabrice Imbault. On the other hand, if the market response is very positive, new financing may also be needed to speed up marketing, to produce more.

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And this all the more so as the young shoots have to go faster and faster in their development. “Digital and Internet-related projects often have fewer technological barriers to entry. Initial efforts can be quite low, but young shoots must very quickly saturate the market, go international to prevent” the emergence of competitors “, notes Michael of Lempdesventure capital managing partner at The capital of Omnes. This again presupposes calling for new collections.

A determined management team

In all of these scenarios, established companies are generally ready to kick back. “The first criterion for selecting a project is the management team, which must generally be of high quality, motivated and deliver a new product and / or service,” continues Fabrice Imbault. Capital providers therefore trust it. “Investors know when they commit to a project, a team, that they can be asked for several consecutive border rounds,” says Fabrice Imbault.

Know how to predict

Finally, if the question and / or the adjustment of the business model are part of the mandatory passages in setting up a business, it is a fact that the entrepreneur must be prepared for it. The latter must exhibit relative agility. For this he can be accompanied. “The role of a company like ours that finances start-ups is precisely to write the various possible changes to the business model. In our discussions with the management teams, we anticipate that action will be taken in case of delays in connection with the commercialization and / or marketing. , ”Explains Fabrice Imbault.

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These discussions are shared with all the investors who participate in the various fundraising events and who are likely to reassure them. “Investments in start-ups are made in several stages; they validate the management team’s strategy, whether it fits into the original business plan or not. This progressiveness is likely to reassure all stakeholders,” concludes Michel de Lempdes.

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