As a small business owner, you may have developed a great business model and dream of running a thriving business. Yet, statistics show that only a few businesses make it. Having a failing business isn’t the end of the road. The key to saving your business and finding lasting success is to admit you might have missed a few challenges with your original idea. That’s very common, but the next and equally important step is the ability to stop and rethink your business model. 

Reasons To Continually Update Your Business Model

It’s harder than people think to start a business. According to the U.S. Bureau of Labor Statistics, about 20 percent of startups fail during the first year. Further, 45 percent of new ventures don’t make it past the first five years, while 65 percent of businesses close shop after 10 years. Only 25 percent of new businesses get to the 15-year mark and beyond. This data has barely changed over the years. 

Although the rate of a new business going under is approximately 20 percent, it doesn’t mean that your venture will also fail. By rethinking your business model, you can improve your chances of becoming a part of 25 percent that hits the 15-year milestone and more. 

Here’s a closer look at some of the signs that it’s time for a business model update:

Changing Times

The COVID-19 pandemic and related economic crisis could be making it harder to generate enough revenue to keep your business afloat. During these changing times, revising your business model will be a necessary move to survive long enough to thrive as you have.

Say, for instance, your gym offered in-person training before. With most gyms affected due to social distancing, there’s way less demand for your services. But you can reinvent yourself by offering virtual training to those who wish to stay in shape wherever they are. This simple yet highly effective change to your business model can ensure your services are still in demand even in these challenging times and when they are over.

Increased Competition

You may have noticed a lot of new competition. It’s true, more new businesses are starting than ever! And this new competition could have attracted even your most loyal customers and become more profitable than your business. If you’ve noticed, many of your competitors have probably tried new services or digital solutions for their customers and are now ahead of the curve, so there’s no denying that they may be providing more value than you do. When that’s the case, it’s okay to take a step back and think about how your business can react and adjust to a new normal.

For example, the best course of action could be to up your customer service game or introduce innovative products or new services. Whatever changes you implement, make sure you do it better than the competition in order to differentiate your business and thrive.

Your Industry is Changing

Unfortunately, some external forces you have little or no control over can impact your business, prompting you to need to tweak your business model. For instance, technology is always changing as a result of innovations, demanding that you rethink your business model too to be profitable. It could be something as simple as adding texting as a communication channel. 

A Shrinking Bottom Line

How you made most of your revenue before may not be working anymore. Perhaps you’re no longer getting enough sales from your initial product offering, and it’s affecting your profits. This is a major reason to reimagine your business model. Stepping back and assessing what’s working – and what’s not, is a must. Moves such as adding a new service or even getting rid of stale solutions that once were popular may help you sharpen your focus and tap into markets that are popular today and win back those customers.

Reinvent Your Business Model and Grow with Finli

If you’re unable to do business as you always have, refining your business model is the perfect move. And don’t just consider what services you offer! Think about how you offer them. Maybe it’s time to streamline your customers’ payment experience. One way is to simplify your business operations by leveraging best-in-class invoicing and payment software like Finli. All these changes can help you meet the demands of clients, expand your customer base, and grow your business.

Want to learn more about what Finli can do for your business? Click here and sign up for a free Finli trial – no credit card or commitment required. And start saving time and money today so you can focus on your business!