33% changed business model in the last 12 months

According to new research carried out by KISS Communications, 33% of businesses have changed their business models in the last 12 month. Questioning over 100 businesses, the research also found that despite the economic instability of the last 5 years, 50% of companies have not changed their business model. “Considering the UK is only just coming out of the worst peacetime recession since the 1930s it is surprising that 50% of businesses haven’t adapted their models,” believesSimon Fryer, Managing Director at KISS Communications. He continued, “Tomorrow’s growth models will not necessarily be the same as yesterdays. Coming out of a recession is a good time to revisit historical business models and either adjust or change them dramatically. Very few businesses can continue to thrive in these challenging times without any modifications.” “Changing a business model that has worked successfully in the past is tough but unless organisations face up to the fact that it may have worked in times of economic growth, the model is unlikely to work during a period of negative growth, reduced consumer spending and threats from other businesses. The internet continues its disruptive impact across every inch of the commercial landscape and retail has been particularly hard hit. It is the retailers that get the internet; investing heavily to re-engineer their business, that have thrived. The ones that haven’t have suffered the consequences with a glut of well-known brands that haven’t survived including Woolworths, Borders and more recently Focus. “Once a business has re-evaluated its business model it can act as a growth catalyst, however it is essential that it communicates these changes in an effective manner, not just to customers but also to employees and stakeholders. Communicating what your business does in a clear, concise and simple manner is key,” believes Simon.