Should you restructure your business model?
Restructuring your business model is likely to involve a change to business strategy or the direction of the organisation. This could include downsizing or introducing strategies such as outsourcing and resource allocation to save money. In other cases, restructuring may involve an internal alteration in duties to improve performance and efficiencies or using new technologies to achieve the same goal.
Other goals of restructuring might include:
- To concentrate on key products or accounts
- To incorporate new technologies
- To make better use of talent
- To improve competitive advantage
- To merge with another company
- To decrease or consolidate debt
Advantages of restructuring
The advantages of restructuring will depend on the goals established prior to beginning the process. Common advantages seen in businesses that undergo restructures might include:
Reducing operational costs
Identifying where processes can be automated, reallocating or losing resources or introducing new technologies, can all streamline your business and have a positive effect on your bottom line. A leaner, more focused organisation is more agile and better able to adapt to external changes in legislation, competition and ultimately allows your business to accommodate change more effectively.
Improving competitive advantage
Being more agile, focused and able to accommodate change in your business gives you a significant advantage over your competition. It means you can act more quickly, gain first mover advantages, invest in technologies and ultimately offer your customers a better service or product. In many industries, products and services are homogenous, it’s how you deliver the service that sets you apart. If you can do this more efficiently and quickly than your competition, you are going to gain market share and grow your business.
Reviving a declining business
Business ebbs and flows, times change, competition increases, technologies move on and what was once a cutting edge idea and business now may have been left behind. If you can see that your business is in decline, it might be the right time to take part in a restructuring exercise to revive your business, modernise it and create an agile future proofed organisation.
A restructuring exercise digs deep into your business at its heart. It’s not an easy process to go through, but the resulting data and information is crucial for a business owner to be able to make sound decisions on the future of a business. Whatever success looks like for your business, the in depth understanding that you gain from an exercise like this helps you to achieve your goals and make often tough decisions, safe in the knowledge you know why you’re taking a specific direction.
The restructuring process
A restructuring process is not a quick fix; it is a strategic process which will allow you to position your business effectively for the long term. The time it takes to complete the process depends on whether you are reacting to a situation such as cash flow difficulties or proactively recognising a change in your industry. Regardless of the reason for change, planning is the key to success and enlisting the help of a qualified professional brings structure and efficiency to the process.
Should I restructure my business?
If your business is in a situation where you have to restructure to save costs, the decision may be taken out of your hands. If you are proactively making the decision and you have a longer time frame to make changes, the right deep information and a seasoned professional in your corner will make all the difference and ensure a successful outcome. We can help and work with you to decide on the best course of action in your particular situation.
We work with a significant number of businesses across many sectors and industries. We see best practice and what has worked for other companies to create competitive advantage. We are also business owners ourselves and so we understand the issues that business face on a daily basis. We can advise on and help to implement, a robust and future proof business structure to increase profits and grow your company.
Get in touch with our managing partner Melanie Richardson to discuss how Swindells can improve the efficiency of your business and provide real improvements to cashflow, profit and the net worth of your business.
Melanie Richardson - Managing Partner
If you’d like to learn more about our approach to working with clients get in touch with Melanie directly on:
Tel 01825 763366
Tax avoidance vs tax evasion: What you need to know
Tax avoidance and tax evasion are sometimes confused and used interchangeably. Whilst the terms avoid and evade are similar linguistically, they stand for very different concepts legally. Both are ways used to pay less tax however, tax avoidance is legal whereas tax evasion is illegal. This article will discuss the two concepts and tell you all you need to know.
6 tips to keep your business productive this summer
The summer can be a disruptive period for business, a recent study found that productivity decreases up to 20%, attendance decreases by 19% projects take 13% longer and workers are 45% more distracted…This article will cover several tips on how to keep your business productive and moving forward this summer.
The modern-day role of the accountant
Today the responsibilities of accountants range from business analysis to legal compliance and reporting. They are more intertwined with the commercial and financial success of their clients and not only here to fulfil the traditional roles of preparing financial statements, tax planning and auditing. This article will discuss the multitude of ways in which your accountant can support your business aside from more traditional services.
Sign up to receive our private content
straight to your inbox