When revenue still holds but the future feels uncertain, now is exactly the right moment to look more closely.

There is a particular phase in the life of a company: the orders are still coming in, the customers keep coming, the company generates revenue. From the outside, everything seems fine.

Nevertheless, management senses that something has changed. Winning new customers is becoming harder. Costs are rising. Good employees are hard to find. Many processes only work because individual people keep adjusting them. Decisions take longer, and the competition seems more digital, faster and more flexible.

So the company is not necessarily in an acute crisis. But the existing business model feels increasingly heavy.

This is exactly where many small and medium-sized enterprises (SMEs) in Germany, Austria and Switzerland currently find themselves. The decisive question is therefore not only how to stabilise the current business in the short term, but how the company is meant to succeed in three, five or ten years.

Why pressure to change is growing among Mittelstand companies

The economic conditions make this question more urgent. In the DIHK business survey (the German Chambers of Commerce and Industry) of February 2026, only 25 per cent of the companies surveyed rated their current business situation as good, while 24 per cent described it as poor. The companies named labour costs, weak domestic demand and economic policy conditions, among others, as the biggest risks.

Many entrepreneurs first respond with the obvious measures: they cut costs, increase sales pressure or take on even more tasks themselves. That may help in the short term, but in the long run it does not change the cause of the problem.

When customers buy differently, employees have different expectations and competitors use digital technologies, it is not enough to keep running the existing model ever more efficiently. A company then has to check whether its offering, its processes and its positioning still fit the current market situation.

How to tell that your business model should be developed further

Usually there is no single big moment when it becomes clear that something has to change. Often it is many small observations: management is constantly tied up in the day-to-day business. Employees look for information in various files and email threads. Quotes are created from scratch every time. Customers expect faster answers. The profit margin falls although revenue remains relatively stable.

A strong dependency can also be a warning sign: perhaps 60 per cent of revenue comes from a few customers. Perhaps a large part of the business depends on a single product or a particular industry.

Sometimes demand also changes gradually: customers no longer buy just a product, but expect advice, support, digital services or a comprehensive solution. Then the question arises whether the company should offer this additional service itself, or whether other providers will accompany the customer there in future.

Digitalisation does not simply mean introducing new software

In the Mittelstand, digitalisation is often equated with software projects: a CRM system is introduced, the website is revised, invoices are sent digitally. These are important steps, but they do not automatically make a business model future-proof.

Digitalisation only becomes strategic when it changes how the company creates value. For example:

• A service company can develop standardised digital offerings from its expertise.
• A mechanical engineering firm can offer maintenance, monitoring and ongoing optimisation alongside the product.
• A craft business can serve more customers through digital planning, online consultation and automated customer communication, without having to add staff to the same extent.

The German Federal Ministry for Economic Affairs therefore deliberately does not describe developing digital business models as traditional business models that are merely implemented on a computer. Digital business models change how services are developed, offered, delivered and paid for.

What role AI plays for SMEs

In many companies, artificial intelligence is first used for individual tasks: texts are drafted, customer conversations summarised, documents analysed. That is a good start. The greater benefit arises, however, when AI is integrated into processes and business strategy.

A recent Bitkom survey shows that 41 per cent of companies with 20 or more employees already use AI. A further 48 per cent plan to use it or are looking into it. 77 per cent of the companies that use AI report an improved competitive position.

Above all, one finding is interesting: 29 per cent of companies have already developed new products or services with the help of AI. This makes AI more than a productivity tool for SMEs: it can enable new ways of delivering services.

An engineering consultancy could develop digital inspections, knowledge solutions or regular analysis services from its consulting experience. A manufacturer could combine its products with digital services and thereby create recurring revenue. A consulting firm could offer its knowledge as a combination of personal support, digital content and AI-assisted tools.

Technology is not the starting point here. First it must be clear which customer problem is to be solved.

Three real examples of new digital business models

The German Federal Ministry for Economic Affairs names several Mittelstand companies that have developed traditional services digitally. At KOLORAT, buying paint is combined with a digital customer experience. Holzgespür shows how traditional craftsmanship can open up new access to customers through digital communication. Fischmaster is working on digitalised fish production.

These examples show something important: the existing business does not have to disappear completely. Often the aim is to make existing value accessible in a new way. A good product can be enhanced through advice, data, maintenance or digital support. Expertise can be turned into new formats. A regional company can reach customers outside its previous region.

Four ways to develop an existing business model

From one-off sales to recurring revenue

Many companies sell a service once and then start again from scratch. Depending on the industry, maintenance contracts, subscriptions, support packages, memberships or regular training can provide more predictability. The right question is: what does the customer continue to need after the first purchase?

From a product to a comprehensive solution

Customers rarely buy just a product: they buy a result. A company that sells machines may be delivering not only technology but higher availability or lower production costs. An IT service provider sells not only software but better processes and fewer errors. This perspective often opens up new offerings and better options for pricing.

From a regional provider to an international specialist

Many companies in the DACH region (Germany, Austria and Switzerland) have outstanding expertise but are only visible in a limited market. New target groups can be reached through digital market entry, multilingual content, international partners or targeted expansion.

A large foreign structure does not have to be built straight away. It starts with a market analysis and the question of where your own service is actually needed. For some companies the next step may be a new European market, for others an international positioning or an expansion into the Gulf region.

From internal knowledge to a usable system

In many Mittelstand companies, a large part of the company's value lies in the experience of individual employees. If this knowledge is not documented and accessible, a considerable risk arises, especially with skills shortages, company growth and succession.

Digital knowledge bases, standardised automated processes and AI-assisted search systems help make information available more quickly. The DIHK Succession Report 2025 shows how great the pressure in the Mittelstand already is: many companies cannot find a suitable successor, while skills shortages, high costs and a lack of modernisation make the handover harder.

Does a company have to reinvent its business model completely?

In most cases, no. There are companies that need to stabilise their existing business and organise it more efficiently. Others should supplement their offering with digital services, new pricing models or additional target groups. Sometimes this leads to a new line of business, which is initially built up alongside the existing company.

It is important not to pursue every direction at once out of uncertainty. Good business model innovation begins with an honest analysis:

• Where does the company make money today?
• Which customers are particularly valuable?
• Which services are profitable?
• Where do the biggest time losses occur?
• Which tasks can be automated?
• Which existing data has hardly been used so far?
• Which target groups or markets have not been addressed so far?

Only then should it be decided which change really makes sense.

Why strategic development so often finds no place in everyday work

Many entrepreneurs have long known that they should change something. Even so, strategic projects get left aside. The reason is usually not a lack of motivation but the day-to-day business.

Customers, employees, liquidity and operational problems allow no delay. Questions about the future, by contrast, seem less urgent at first. So months or years pass while the gap to more digital and more agile competitors widens.

A protected strategic setting can help to regain clarity and make decisions: not as general inspiration, but with a concrete analysis and a workable plan.

DACH global Mastermind for entrepreneurs from the DACH region

The DACH global Mastermind Series by ivato is aimed at business owners who want to develop their business model, open up new markets or consciously shape the next stage of their business.

The focus is on questions such as:

• How can our business model become future-proof?
• What opportunities do digitalisation and AI offer our company?
• Which new offerings fit our strengths?
• Which target groups and markets are interesting?
• What can international growth look like in concrete terms?

The mastermind is neither a classic seminar nor a large conference. It is a small, curated group of entrepreneurs and a space for strategic decisions. The meetings take place in Tyrol or Dubai.

Tyrol offers the right setting to gain distance from the day-to-day business and develop a new entrepreneurial chapter. Dubai opens up a perspective on international markets, freedom of location, capital and growth in the GCC region.

Conclusion

A business model can still work today and yet lose importance in the long term. Entrepreneurs should therefore not wait to act until revenue has fallen significantly. The better time is while resources, customers and room for manoeuvre are still available.

Perhaps your company does not need a radical restart. Perhaps it needs a clearer offering, better processes, new digital services or access to another market.

The most important question is: which next stage of development is possible for your company if you do not merely manage what exists, but deliberately think anew?

If you would like to explore this question together with other entrepreneurs, find out about the DACH Global Mastermind for international entrepreneurs.

Would you rather speak directly? Arrange a no-obligation initial consultation.