Change your business model at the right time to succeed

Reorienting yourself is an art that you must master.

By adapting the original concept and gradually reorienting the business model, many companies have to do it out of necessity or simply to survive. To adapt to a highly competitive environment, to seize new opportunities or to develop a mediocre basic idea, reorienting yourself is an art that you must master.

If a business doesn’t run smoothly, it has to run

Between an original idea and its realization, entrepreneurs know that the path is riddled with pitfalls. An obstacle course? A little. Through exchanges with advisors, bankers, experts and other developers, asking questions can sometimes be essential. If it is not the entourage, then it is the environment of the entrepreneur, the legal framework or even an event that changes everything.

From the radical twist to the trial and error that will get you going, the term “pivot” has made its way. So if you’re an entrepreneur, keep in mind that a good business plan and any market studies you’ll be doing are there to reassure you (and reassure stakeholders), and give you a direction to follow, but this information does not constitute any guarantee for the future. The economic model of a young company like that of an already established company is a moving concept, which must evolve taking into account all feedback received, from customer feedback to the economic environment. Turning is when you change a fundamental element of the business model: it can be a simple but decisive element (the price of the products) or a more complex element (for example, your product is missing essential functionalities or the desired distribution channel is not yet available to use). grown up).

Lean Start-up: how to continuously improve?

It’s time for entrepreneurs to stop basing their development on assumptions and put too much trust in ‘performing’ tools and methods. What is needed are solid foundations, convictions and convictions, but also the ability to hear criticism and feedback from the various interlocutors in order to continuously adjust† Some have theorized this need for continuous improvement in entrepreneurship. For example, Eric Ries, author of “The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radially Successful Businesses” explains the need to use customer development, that is, testing the assumptions associated with the business model. confronting ideas with reality.

Use this method to enhance or supplement an offering you can already sell, or to add value to a solid asset you already own,” confides Thomas Guyon, former incubator director and entrepreneur, in the columns from Frenchweb. “You need to make a business out of blocks you already have (and if only one was needed, I’d say it’s better to have the distribution channel already), not a blank canvas! Indeed, the concept of Lean Start-up is fiercely criticized because if construction by iteration seems like a good thing, it’s still essential to have a good basic idea.

Running and having a long-term vision: mission impossible?

If the initial spark isn’t enough to bring a project to life, and you need to re-fine, test, and tweak an idea, that’s fine. But be careful not to become a weather vane. The term “pivot” is not retained by chance. Here is the definition of the term pivot according to the Larousse dictionary: Basic, essential support, on which everything rests; ashes, cornerstone around which everything is organized So turning does not mean changing everything! Moreover, examples of companies that have applied this technique prove it. Covoiturage.fr (now BlaBlaCar) is now a successful company that has understood that it had to change and reorient its commercial proposal. But it also took patience and willpower 9 years have passed between the beginning and the success of the online booking service, which was only launched in 2012 while Covoiturage was founded in 2004!

The Lean Startup breaks the vision, with too much emphasis on rapid iteration around small products – and very concrete feedback from potential users explains Guilhem Bertholet, owner of Invox, Content Marketing agency. † Nurturing a vision requires a long-term approach, a serenity in reflection that the lean startup doesn’t really bring

Reorientation is not failure

Reorienting, changing, evolving an original idea is essential for the life of a modern company. But be careful, because this permanent evolution is not without risks:

  • Beware of ego problems : if the manager and/or initiator of a concept are told that the idea is not good, the prices do not match or the need is nil, it hurts. You need to know how to absorb criticism and sometimes throw certain ideas in the trash;
  • And the hobby? Pay attention to approaches that consist of evolving in small steps, moving toward always positive results. The life of a company should also be marked by defeats and mistakes. Because by wanting to follow the positive indicators too much, we sometimes lose the original passion.

There are companies that have become ambassadors for spindle technology. BlaBlaCar, mentioned above, is one of them. Another recurring French example, Criteo. In 2005, Criteo was a movie recommendation service. A year later, the company evolves to position itself on the recommendation of products for trading sites and help them achieve cross-selling. But in 2008, new change and new pivot. Criteo moves to a CPC advertising-based business model and markets online advertising. Difficult to follow? The image is casually watered down and blurry. But the success is there, because in 2013, Criteo made its IPO on the Nasdaq, the US index of technology stocks.

As an entrepreneur, you must be prepared to evolve with the environment in which you operate. Think creatively outside the box as the conditions on the ground change and faster and faster with the current pace of technological development. The life of a start-up, and that of its creator, is by definition tumultuous. The necessary rapid changes in the business model also distinguish this human adventure from creating a more traditional structure. Turning is the essence of entrepreneurship and the key to the success of your business. Know how to integrate a dose of agility into the heart of your company’s DNA from the outset to ensure survival first, then success. It’s up to you to be an outstanding visionary, questioning yourself regularly to take the right turns at the right time, while maintaining the passion that drives you!

Do you like this article? Write it down.

Be the first to rate

Leave a Comment