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Important Considerations for Adapting to Evolving Market Demands and Changing Business Models by Hector E. Aguililla, CPA


Posted on June 07, 2022 by Hector Aguililla

The pandemic and subsequent years of economic uncertainty have proven that change is the one constant business leaders must accept and continually prepare for, not only to survive, but also to thrive over the long term. While changes may involve modifications to specific segments of a business, such as narrowing or expanding geographic distribution, products and service offerings; implementing new marketing and sales strategies; upgrading technology; or establishing new processes to comply with the latest regulations. Other times it calls for businesses to make drastic departures from their established strategies and construct new models from the ground up. In both cases, businesses must evolve with the times and identify additional revenue streams to remain viable.

Businesses do not change strategies overnight. Rather, their evolution requires a significant investment of time and resources and careful planning to conduct a 360-degree view of current operations, analyze feasible strategies, develop and implement plans and allow employees, customers, business partners and all stakeholders the appropriate time to adapt. Doing so successfully is a team process, which requires the counsel of trusted business partners, including accountants, lawyers, business consultants and branding specialists. Relying on the experience and expertise of these professionals allows businesses to align proposed transformations with appropriate legal and tax strategies that serve to mitigate risks and enhance value opportunities.

Along the path to transformation, businesses should consider the following questions to help design a game plan that they may turn into an operating reality:

Business model reviews and transformations are vital tools in the management-planning process. Often, market changes occur so quickly that businesses never see them coming. As a result, opportunities may be missed, and previous strengths may morph into future weaknesses overnight. To avoid this common trap, businesses must keep an eye to the future, remain diligent in their constant efforts to challenge the status quo and work with their advisors to implement changes in the most efficient ways possible. Their survival depends on it.

About the Author: Hector E. Aguililla, CPA, is a director of Assurance and Advisory Services with Berkowitz Pollack Brant, where he provides audit, accounting, consulting and litigation support services to a broad range of business clients. He can be reached at the CPA firm’s Miami office at (305) 379-7000 or via email at info@bpbcpa.com.