It is normal for businesses that encounter hardships to have to take a closer look at the way they are doing things and make adjustments. There are changes that can be made to the way a business operates that can help save money, be more efficient and embrace new opportunities. There have been challenges for many businesses over the course of the last few years. It has left businesses looking for ways to refocus and restructure. Restructuring your business is a large shift that can be difficult but worthwhile. Principle Insolvency is here to talk about the restructure process and how to get it going.
Business Restructuring Process
There is a great deal of consulting that is involved in a business restructure. It is important for business owners to understand that there isn’t anything set in stone until you have consulted with those employees that will be most impacted by the changes and considered their input. Here is what you can expect from the process:
– Consider Options: You need to make sure that your business restructure is legally justifiable. You need to find good commercial reason before you get this process rolling. Here are some of the methods you’ve used to address challenges, looking for ways to reduce costs when revenues are down, renegotiating leases with landlords, raising prices for customers, stopping all new hires, and increasing your focus on marketing to increase revenue.
– Building Your Case: When you are building your case for restructuring, you need to make sure you are justified in doing so. You need to be genuine when you’re building your case and need to have sufficient evidence that a restructuring is needed. Make sure you are defining your company’s overall goals and objectives. You need to clearly state the reasons why a restructuring is necessary including, cash flow problems, financial issues that require reduced overheads, new opportunities or even new products that you need to need customer demand. The key to this part of the process is being genuine.
– Restructure Proposal: Next, you will need to put together your restructure proposal for your employees. This will clearly show them what new responsibilities they will have, differences in pay, and the commercial reasoning behind the decisions you have made. You need to have complete transparency with your employees. This is especially true because there might be some significant shifts in responsibility and compensation for some employees.
– Communication: It is vital that you keep an open line of communication with your employees throughout this process. They are bound to have questions that will need to be answered. You will want their feedback and will want to make sure they have a clear understanding of what you expect from them moving forward.
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If you are struggling as a business, you can turn to Principle Insolvency to help you come up with solutions to keep your business intact. Call us today!