Business Model Innovation Advisory: How to Test a New Revenue Model in 60 Days
A practical 60-day approach to testing a new revenue model before you commit money to it, and how business model innovation advisory can help SME owners run the test.
Most owners hear "business model innovation" and picture a risky, company-wide overhaul. In practice, good business model innovation advisory works the other way around: it starts with a small, cheap test of one idea, and only scales the idea once real customers have shown they will pay for it.
This post lays out a 60-day plan you can run in your own business, whether you sell services, products or subscriptions. The numbers used below are illustrative estimates, not benchmarks, so replace them with your own.
What a business model actually is
A business model is simply how you create value, who pays for it, and how you collect the money. Changing any one of those three is an innovation. You do not need a new product to do it.
Common shifts that suit SMEs
- From one-off projects to monthly retainers or maintenance plans.
- From selling products to bundling product plus service or training.
- From selling to individuals to selling to businesses, or the reverse.
- From fixed pricing to tiered or usage-based pricing.
Why testing beats planning
A detailed plan for a new revenue model is mostly guesswork, because you cannot know what customers will pay until you ask them to pay. A test replaces opinion with evidence. If a test costs you a few weeks and a small amount of money, a wrong guess is cheap. If you build the full offer first, a wrong guess can cost months.
The 60-day plan
Days 1 to 10: Pick one hypothesis
Write one sentence in this form: "We believe [customer type] will pay [amount] for [offer] because [reason]." For example: "We believe our existing clients will pay a monthly fee for ongoing support because they currently call us ad hoc." Choose the idea that is closest to something you already do well. Avoid testing three ideas at once, since you will not know which one worked.
Days 11 to 20: Define success before you start
Decide the pass mark in advance so you cannot talk yourself into a weak result later. Useful measures include:
- Number of customers who commit money (not just say "interesting").
- Margin per customer after the real cost of delivering the offer.
- Hours your team spends per customer, so you know if it can scale.
As a rough illustration, you might set the bar at 5 paying customers out of 20 conversations, at a margin you would be happy to repeat 50 times.
Days 21 to 45: Run a small, real offer
Build the lightest version that can still be sold: a one-page description, a simple invoice, and manual delivery. Do not build software, hire staff or print brochures yet. Offer it to a short list of existing customers first, because they already trust you and will give honest feedback quickly.
Days 46 to 60: Review and decide
Compare the results with your pass mark. There are only three honest outcomes: scale it, change one variable and test again, or stop. Stopping is a success too, because you have avoided a larger mistake.
Where an advisor adds value
Owners can run this process alone, but an outside view helps in three places. First, choosing the hypothesis: advisors have seen which shifts tend to suit businesses of your size and which tend to stall. Second, setting honest numbers: it is hard to judge your own idea objectively. Third, handling the operations behind the test, such as pricing, contracts, and how delivery will work if demand grows.
When you evaluate business model innovation advisory support, look for someone who will help you run small tests rather than someone who hands you a long strategy report. Ask how they will measure success and what happens if the test fails.
Mistakes to avoid during the test
- Giving the offer away free. Free users tell you nothing about willingness to pay.
- Ignoring delivery cost. A model that sells well but loses money per customer is not a model.
- Moving the goalposts. If you did not hit the pass mark, do not quietly lower it.
- Neglecting the core business. Keep the test small enough that current customers never feel the change.
Ready to test your next revenue model?
If you have an idea for a new way to earn but are unsure how to test it safely, we can help you choose a hypothesis, set the numbers and run the first experiment. Book a free consultation and we will talk through your situation.