How to deal with the need to change the business model?

To change is to face uncertainty, but also to give the company the means to become sustainable. Innovations have changed the way we live, and what was indispensable yesterday has become obsolete today. An innovation emerges in the market, a competitor with high-performance services establishes itself in the sector, you understand that in order for the company to continue to live, it is imperative to change the business model. But you are not alone, and you will need to convince and implement change by shaking up habits that will require effort from your teams.

A difficult turn to take, especially when it comes to being accepted by employees and partners, which is not the least of the difficulties. Changing the business model remains a difficult but often necessary choice. For entrepreneurs, it is a challenge to get this change accepted by their teams and partners.

Convince the teams

Changing the business model, regardless of the size of the company, requires the commitment of employees. But leading teams to accept change requires developing the strength of beliefs and the arguments needed for understanding. You must first present this change as an option. It is necessary that every employee feels like an actor in the change and understands all parameters so that it can function in harmony. To do this, explain the situation: show that the company can still cope in the short term, but also that in the medium term, everyone’s jobs would be questioned due to a lack of understanding that it was necessary to adapt. Finally, if the company develops, they will be the first recipients.

Show necessity and opportunity

The renewal of the economic model very often encounters difficulties on the part of those responsible for management because it calls into question their role and the fear of losing their performance causes them to slow down. Attention ! They want to influence their team members. It therefore seems essential to develop communication that enables each leader to understand the problems. You have to make them visualize the future and ask them to make suggestions, but also see the difficulties and ask them what adjustments to make.

Show that the product is not the master

Examples of this abound. It is enough to flip through the history of companies to show that changing the business model is an integral part of a company’s life. You can mention that it is not only companies that have been established for decades, but also young companies that have not hesitated to change their business model and have become success stories. Home appliances companies are a striking example of the development: the diet transformed into a vacuum cleaner, but also the creation of new products: the fryer, the microwave …

Overcome reluctance

The reason most often given is linked to professional competencies, for example when we switched from typewriter to computer: people felt incompetent. They had been recruited on a professional competence which they had taken a long time to acquire, and they were asked to acquire a new skill. The computer with its new features showed that their knowledge was outdated. The effort is such that it is necessary to overcome this reluctance. Funds, such as training, will have to be used to get employees most directly affected in their daily lives to cross the psychological threshold for change.

Overcome fear

Another recurring obstacle remains the fear of loss of income. In fact, the changes adopted may affect the company’s income, as before the implementation of the new business model, it will be necessary to leave what makes the company current wealth. That was what made Kodak not take the digital turn for fear of seeing its profits fall in the development of photo films: a disastrous choice that caused the loss of the company. Although the decisions made reduce the short-term income, the change should not be questioned. Entrepreneurs therefore need to know how to highlight the enormous long-term economic potential that any development hides.

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