The business model you decide to adapt is what makes your success or failure. The business models has changed over the time because for example technology and innovation are the masters of the business play today. Therefore, the need to innovate and adapt the business model is a condition for its rise and survival.
Understanding a business model and its importance is the first step towards having a successful business with an adapted and innovated model. The business model in simple words is the plan of a company for making profit. It is the starting line of the company. On a Harvard Business Review article by Joan Magretta it was mentioned that: “…Business models are, at heart, stories that explain how enterprises work. Like a good story, a robust business model contains precisely delineated characters, plausible motivations and a plot that turns on an insight about value.”
The business models are different because each company has approximate, yet different goals. The good business models share the main characteristics of a business success, which is aligning the business model to the business goals. Obviously, the roadmap and the vision should stick together. As a business owner, you should understand your WHAT, WHY and plan your HOW to. This sums up in general your innovative idea, your revenues strategy, and most importantly the needs of your costumers, and employees.
A business model needs to be tried and evaluated. Some might have a creative idea for it and others might be inspired, but not the same model works equally for all the different companies. This is why it is necessary to evaluate your model and choose the most effective methods according to the results of your evaluation. There are many recommendations that you would find if you look for how to evaluate your business. The main guidelines are to start by the investigation of innovative sales models; you need to be aware of the successful models on the market, its latest updates, and your competitor’s state. In addition, revising your profit and your state at the market is necessary. Last and not least, the client is always the mission. Your business needs to raise to meet the expectations of your client.
All this being said leads us to the main point, which is the adaptability. Let us take the Covid 19 situation as an example it was a reason for a main change in the way companies work internally and externally. When a lot of aspects leading the business changes, we cannot keep the business model still. The best words to explain the need of adaptability are said by Josh Kopelman: “Write your principles in pen and your business model in pencil “.
This article gives a general image of what a business model is. The design of the model is a whole set of strategies, trackers, tools, and planners. Remember that if you have an idea, you can align it with a goal and model it into a business.