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 appears on 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 have to convince and implement changes by shaking up habits that will require efforts from your teams.

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

Convince the teams

The change of business model, regardless of the size of the company, requires the support of the employees. But leading teams to accept change requires developing the strength of conviction and the arguments necessary for understanding. You must first present this change as an opportunity. It is necessary that each employee feels like an actor in the change and understands all parameters so that it can work in harmony. To do this, explain the situation: show that the company can still manage in the short term, but also that in the medium term everyone’s jobs would be called into question due to a lack of understanding that it was necessary to adapt. Finally, if the company develops, they will be the first beneficiaries.

Show necessity and opportunity

The renewal of the economic model very often encounters difficulties with the people in charge of management, because it calls into question their role and the fear of losing their performance makes them become brakes. Attention ! They will influence their team members. It therefore seems essential to develop communication that enables each individual manager to understand the issues. You need to get them to visualize the future and ask them to make suggestions, but also to see the difficulties and ask them what adjustments need to be made.

Show that the product is not the champion

There are many examples of this. It is enough to look 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. Appliance companies are a striking example of the changes: the broom transformed into a vacuum cleaner, but also the creation of new products: the deep fryer, the microwave….

Overcome reluctance

The justification most often given is linked to professional competences, for example when we switched from typewriters to computers: people felt incompetent. They had been recruited on a professional competence that 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 stakes are such that it is necessary to overcome this reluctance. Means must be put to use, means such as training, to get the employees most directly affected on a daily basis to exceed the psychological threshold for change.

Overcome fear

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

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