12/31/2013 - 2014 to bring rejuvenated business models
With 2014 just hours away, it's time that both individuals and business owners set goals and resolutions for the coming year. And, according to a recent survey by KPMG, it's these entrepreneurs that are looking to make this year a truly revolutionary one, by revamping the business models they had established in 2013 and previously.
The poll, which questioned approximately 900 executives from companies that had an international presence, discovered that 93% of respondents intended to change their business profile in 2014 so that it was noticeably different compared to all the previous years in which they were established.
Stephen Hasty, partner for the audit, tax and advisory firm, indicated that this type of strategy isn't unusual, given that entrepreneurs need to be capable of changing in order to adapt to the marketplace they're in.
"Business model reviews and changes have become a permanent component on the corporate agenda," said Hasty. "Companies today face unprecedented challenges to develop operating models that can help them respond to and translate current marketplace pressures into competitive advantages."
Among the reasons for why executives were amenable to overhauling their business strategies, the top rationales given included adapting to buying patterns that are in a constant state of flux among consumers. Other justifications included adjusting to new technologies, competition among other brands and industry consolidation.
Virtually any rejiggering of a business model - whether minor or major - likely brings new purchases, investments and services, depending on the industry that's being talked about. And, with these changes, come certain liabilities that may need to be addressed. Entrepreneurs should be sure to review their business owners insurance policies with their carrier so that they can be covered when the unexpected happens.