The 3 secrets to business restructuring
The need to re-evaluate businesses as a result of economic pressures is being felt up and down the country as a result of the recession.
As conditions for businesses remain tough, sometimes drastic decisions are required to ensure that businesses do not fail.
The key in most restructuring cases involves identifying opportunities and risks while they are in the early stages of development, meaning action can be taken before they develop into anything more serious.
Smaller businesses have an advantage in this sense as they can be more agile in the way they approach these changes and because there would be no need to roll out widespread alterations on a large scale, small changes can be made that can have a major impact financially, without disrupting the structure too much.
Measuring results in business can be the difference between success and failure while it can also show if any transformations are working out as planned.
Having clearly defined goals is a fantastic way to stay on track and map out where a business is at any given point.
It also enables for the style of management in the business to reflect where the company is going, which can have a positive impact on both the staff and consumer.
At the same time it provides an ideal way to keep staff motivated, as they are always working towards targets.
A word of warning though, as having too many targets can lessen focus while any goals should also be attainable but not so easy that they no longer represent a challenge.
Deciding who is no longer needed can result in many tough decisions, but if suppliers are no longer bringing benefits to a business it might be time to let them go.
If they are not critical, or the services they offer are available elsewhere for less, then it is possible to restructure and remove any potential loss-making deals.
Ensuring that the important assets are kept on board is just as vital to success, as the company survival may depend on them further down the line.
Careful management is the key factor, as rushed decisions can lead to greater issues further along the business pathway.
By Phil Smith