Change of course: How To Rethink Your Business

Clients disappear, the stock is full, and sales decrease every day. There is no other way out: you must make strategic changes in the company to guarantee your survival. The rethinking of the business emerges as one of the main alternatives of the entrepreneur.

“Keeping the business plan up to date is ideal, but entrepreneurs usually do not have time for that. They are very busy, “says Jonathan Defoy, CEO of Biztree, a North American business consulting firm.

The consequence of this lack of time usually appears in the performance of the company, because ignoring the changes in the scenario in which you act will be detrimental to your strategic positioning. The explanation is simple: if you do not realize the changes in the segment, you will not know how to meet the new demands.

When is rethinking necessary?

The rethinking of the business may be due to several factors. In general, it arises when the results are below the expected. Find below some of the most common reasons for changing directions.

  1. Look for financing

Some companies decide to rethink when they are looking for investors and financing. The idea is to adapt the structure to the requirements of the investment.

  1. Growth of competition

Suddenly, a new competitor comes to the market to dispute the clientele with your company. In that case, rethinking can help identify the weak points of your business to find a competitive attribute.

  1. Obsolete business

With the advancement of technology, some services and products lose their usefulness. Quick answer: how many DVD locations still exist in your city? Obsolescence can lead companies to rethink all business models to avoid bankruptcy.

  1. Management problems

Decontrol of the cash flow, wrong investments, hiring failures … many management problems can motivate a rethinking. The idea is to use the observed error to reflect on the performance of the company in general.

  1. Sales in fall

Perhaps this is the most common reason for changes in the business plan and the structure of a company. A company will hardly continue in the same way, without making any changes, when its sales fall.


The Rethinking Requires A Detailed Analysis

The key, the specialists point out, is to make decisions based on a good business model, specific to your area of ​​activity. “Try to evaluate all the topics of interest: market, product, marketing, equipment, and competition, with the maximum possible objectivity,” they suggest.

The rethinking requires a great deal of introspection to understand the origin of the problems. You must ask yourself what changed. To do this, you have to reflect on the work, your performance, and aspirations, the market conditions, the competition, the target audience, etc.

After finding the fact that triggered the problems, you have to set up an action plan, analyzing the possibilities offered by the structure and resources that you currently have. What can be done from today to overcome the situation?

Seeking help, whether in Internet forums or entrepreneurial books, can make a difference. If you have more resources, it may be worthwhile to turn to consultancy firms and segment professionals.

Finally, you must remember that perseverance and adaptability are conditions for the success of your company. “All companies go through ups and downs. Only those that are strong survive, “say the specialists.