When it comes to building a business, two things that are inevitable and healthy is growth and change. It’s a sign that your business is expanding and evolving like any successful business would. However, with change and expansion come the question of knowing when it’s time to change a core part of your business: your business model.
Your business model is the very thing that helps your business be profitable, serves your clients, and keeps you running. Knowing when it’s time to shift things or keep pushing forward as is can be tricky. There are a few ways that I have found to be helpful when trying to make the decision of whether to pivot your business, or stick through it.
Identify What’s Working and What’s Not Working
One of the biggest mistakes I see entrepreneurs make is that when they feel like something isn’t working in their business they want to burn it all down. And by all I mean all.
Just because something isn’t working doesn’t mean the whole thing is broken.
For example, if you had a toy that wasn’t working, would you throw it away or perhaps try changing the batteries first to see if that’s the problem? I’m guessing you’d try and change the batteries. Instead of calling the entire service or product broken, identify what isn’t working within it and try fixing that before you burn it all down.
In the same way, identify what is working with what you are currently offering. What seems to be producing results and be selling? Know what works well and keep that around.
Identify What’s Sustainable
One of the other key identifiers I want you to focus on is sustainability. Ask yourself whether or not this is something you can see yourself doing long-term. Some indicators of that would be whether or not you enjoy it, whether or not your clients seem to like and/or need it, and how long you believe you’ll be able to keep doing what you are doing based on the trajectory of the business space.
Identify What’s Scalable
Another key piece of this equation is scalability. Are you able to scale what you are currently doing? Or is it actually limiting you from experience growth? I believe that everyone has a level of scalability they want to attain, so as long as you can attain that level with what you are doing, then you’re good.
However, if your current model is limiting you from attaining the level of scalability that you desire, then it’s time for a shift.
Understand the Timeframe
If you find yourself constantly shifting your business model because you feel like things aren’t working, this might be an indicator that you are changing things too fast. A good rule of thumb to follow is to test something for a minimum of 90 days before making any sort of decision on it. 90 days is a good amount of time for you to observe, test, and discern whether or not something you are doing is going to work in your business. You can’t go on a diet for just one week and expect to see results. You have to be willing to give things the time and space for them to work. Do the same thing in your business.
Your business model is the bloodline of your business, so treat it as such. Know that it’s what gives life to your business and be wise about the way you change, add to, or adjust it. Be flexible, and in the end know that when everything aligns with you in your business, it’s inevitable that your business will grow.