What is restructuring? Restructuring is usually when you face financial troubles or pressures. You take action to modify your financial situation and other operational aspects of your company. Be prepared to strengthen your company with a view to achieving better and more efficient policies. Increase that profit and adapt to the changing market.
Why is this necessary? There are lots of changes occurring in our economy. The way people are spending their money, what they’re spending their money on, and how they are investing their money.
· Reallocate resources.
· Look for areas that are under performing to make necessary changes.
· Cutting out unnecessary positions or find better uses for your in-house talent
· Form new partnerships to collaborate with.
· Sell assets, refinance to free up cash, or refine to lower those interest rates
· If you’re not making a profit, is it a decrease in sales?
· Major tasks not assigned to a responsible person Is it due to change in staffing? Newly created process that nobody has mastered yet? New products and lack of familiarity? A good example of this would be a new billing system for your clients. Sometimes accounts receivable payments go overlooked.
· Changing customer needs and demands.
· Ready to expand? MAJOR MOVE! Add those key components and people.
How are you going to make these necessary changes? Planning!
· Input from all your staff at all levels.
· Not just from the top.
· What is the change and what risks are involved?
· Buy in from your team – people dislike change.
· Communication.
· Costs Projections.
· Legal tax if you are selling or merging.
Our Top 5 Reasons to make these necessary changes
· Increased efficiency
· Better communication
· New opportunities
· Better use of talent
· Reduced costs
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