When a company is launched there are two possibilities: that it is successful or that it is not. If a business fails, the reasons can be many, for example a bad product, bad management, a bad approach or the wrong business model . There are many cases of companies with a very good product, but that failed because their business model was not the most convenient.
The question is what to do when the business model does not work?… Well, this question was passed on to some entrepreneurs who, through their experience in the development of startups, gave their opinion on the subject. I invite you to watch the video and then review the infographic on how to improve a business model , there you have some key questions to evaluate your business and improve your model.
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If the business model of your company is not working, it’s time to analyze, adapt, and pivot strategically. Here’s a structured approach to diagnose and fix the problem:
- Identify the Core Problem
Revenue Issues: Are you not making enough sales, or are costs too high?
Market Fit: Is there demand for your product or service?
Customer Acquisition: Are you struggling to attract or retain customers?
Competition: Are competitors outperforming you with better offerings or pricing?
- Gather Data & Insights
Customer Feedback: What do users say about your product? Are they willing to pay for it?
Industry Trends: Has the market shifted? Are there new technologies disrupting your business?
Financial Analysis: Where is money being lost? What’s your customer acquisition cost (CAC) vs. lifetime value (LTV)?
- Adjust Your Business Model
Revenue Streams: Can you introduce new income sources (subscriptions, licensing, partnerships)?
Pricing Strategy: Are you charging too much or too little? Consider tiered pricing or freemium models.
Target Audience: Are you focusing on the right customers? Reevaluate your niche or expand to new markets.
Value Proposition: Are you solving a real problem effectively? Refine your offerings based on customer pain points.
- Optimize Operations
Reduce Costs: Can you automate processes or outsource to lower expenses?
Improve Marketing: Are you reaching the right audience with the right message? Try SEO, influencer marketing, or content strategies.
Partnerships & Collaborations: Can you collaborate with other businesses to expand your reach and reduce costs?
- Test & Iterate
Experiment with small changes before making major shifts.
Use A/B testing for pricing, features, and marketing campaigns.
Continuously track metrics and pivot based on data.
- Consider a Pivot (If Necessary)
If the current model is fundamentally flawed, don’t hesitate to pivot. Examples include:
Changing from B2C to B2B or vice versa.
Offering services instead of products or vice versa.
Shifting from a one-time purchase model to a subscription-based model.
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