Is your current business model fit for the future?


Eddi Taylor, Accounts and Business Advisory Services Partner at Azets, discusses how to review your business model to ensure business resilience and growth.


A robust business model can help businesses keep on track and move forward towards strategic aims and objectives. However, the past 12 to 18 months for most businesses have thrown many business models and plans into disarray.


Business models that stress test a business through scenario planning and worst-case ‘what ifs’ may have fared better in recent times, but no one could have predicted a global pandemic, while navigating Brexit. Even businesses that have seen an increase in sales during this time may have changed how they operate and flexed to the way in which the world now operates – digitally and at a distance.


Adapting the business model is a key priority for SMEs, and as the UK looks forward with businesses reopening and restrictions being lifted, SMEs may want to review their business models to ensure they are fit for the future and this new way of doing business.


Now, where and how framework


There is a simple but effective framework that can be used when preparing and reviewing a business model: now, where and how. This framework works as a roadmap for where businesses are headed. As part of any growth and management process, businesses need to first focus on where they are ‘now’. This puts a peg in the ground and allows for monitoring on improvement and change. While most businesses will dive straight in trying to fix issues


straight away, it really helps to first focus on the future and ‘where’ business leaders want the business to be within a certain period of time. Once business leaders understand where the business is now and where it wants to be, the path will start to appear as to ‘how’ to get there and the changes and strategies that need to be implemented to achieve those goals.


Creating the business plan


To plot ‘now’ using this framework, businesses should consider:


• What are the key issues and challenges facing the business and leaders right now?


• What are the urgent concerns in the business in the short and long term?


• What are the opportunities facing the business?


To plot ‘where’ using this framework, businesses should consider what the vision is over a set period of time, which could be the next 90 days, one year, or even five years and where the business will be in that time. Bullet points can summarise these aims.


An effective business model will contain the strategies involved to get from where you are now, to where


you want to be and to achieve the ambitions laid out. The strategies are the ‘how’ piece of the framework. Within how there should be overall strategies to proactively focus on, and some clear and concise action points against each strategy.


It is also crucial to lay out a timeframe for these action points to be completed and who will be responsible. This will bring in an element of accountability. Bringing your team on board and giving them specific responsibilities within this can be really beneficial as they will take ownership and feel motivated to achieve the shared goals.


Reviewing a business model


It is now more important than ever to plan for the future, and business models should be constantly and regularly reviewed. Some businesses may review every six months, others may be doing so daily right now.


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NOVEMBER/DECEMBER 2021 businessmag.co.uk


business focus


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