Restructuring your business is a difficult decision that demands careful planning and consideration, especially if your finances are already tight or held up within assets. Restructuring can put you under further pressure if the wrong decisions are made. If you think that restructuring your business is something that you would be looking to do in the near future, it is always best to seek advice from professionals within this sector. This provides you with additional support and helps you to decide when the right time is for restructuring.
Falling short of KPIs
When things are going well, restructuring is typically not necessary or something that business owners look to prioritise. Referring to statistics and measurements will make it clearer to understand when change should take place. To determine what is working and what isn’t within the company, you must first review your performance in previous years and any targets that you had set to achieve. If these are not met, or your business is beginning to underperform, then restricting may be a good thing to consider.
High client turnover
Something needs to be done if customers leave frequently or are dissatisfied with the outcomes that your services provide. Other customers may take note of your poor reputation and elect to use your competitors as a result, which can mean that you miss out on potential revenue.
External environmental changes
This might happen as a result of new laws, cutting-edge technology, or changes to consumer preferences. For instance, a rise in fuel prices has caused several businesses to ban travel and the use of specific machinery, to help reduce costs and minimise their carbon footprints. The development of telecommuting technology has produced more diversified and responsive virtual teams, expanding the opportunity to restructure your business.
Low cash flow
If you frequently experience cash flow problems, you might need to restructure to make your business model more efficient and increase cash flow. There are many reasons why you may be experiencing cash flow issues, this could be as simple as sales increasing but the company may be having trouble collecting money or may have inadequate working capital, which is reducing your cash flow. Not only is having a low cash flow risky to your business, but it can make your company appear riskier to investors and also increase the chances of the company going into liquidation. To accelerate the process of restructuring your company, make use of professional advice in digital marketing automation.