If you already have a business and notice that the current model is under threat, then it’s time to consider choosing a new business model.
Where to start?
There are three elements which are important in order to determine which business model to choose:
- The costs of producing and maintaining the product or the service you want to provide.
- How much is your customer/client willing to pay in order to use your product or service?
- What are the most convenient channels for your customers/clients?
Modify your existing business model
If your current business model is only experiencing minor issues, it might suffice to adapt it.
There are two ways to do this:
- For short term results, apply a SWOT on the Business Model Canvas
- For long term results, apply the Blue Ocean strategy on the Business Model Canvas
... or choose a new business model
If your current business model is experiencing major issues, it might be time to choose a new business model from the following options:
Let current and new business models coexist
You may find you have two business models that need space to evolve. Depending on the similarity of their building blocks, synergy and potential for conflict, you will either have to integrate them, give them autonomy or separate them.
If you want to try out a new business model without damaging the mother company, then the most common solution is to create a spin-off.
Test your new business model
As when launching a new business, testing a new business model is also important. Depending on your new business model, you may use one of the following methods:
- Clickable prototype
- Landing page