Restructuring the business is one of the more drastic moves you can make, but there are plenty of scenarios where it can represent the very best thing for recovery, for matching pace with competition, or for aligning yourself better with a changing industry.
Restructuring your business’ finances or operations will have significant and wide-reaching ramifications for yourself, your bottom line, and for your employees and customers. Preparation and foresight are key, but they are also elusive – particularly if you’re currently grappling with a difficult phase for the business.
For that reason, the very best advice anyone considering restructuring could ever receive is to get legal guidance as soon as possible. This isn’t a decision you should take lightly, or attempt to deal with on your own. The unique needs of your business must be seen to as a matter of priority, but no ‘How To’ manual can equip you to see to those on your own. Corporate solicitors can advise you on the benefits, as well as the risks, and help you to make a much more informed decision.
With that in mind, here are a few key advantages to restructuring that could work for your business.
1. Lower Operating Expenses
By shrinking your workforce and placing a greater emphasis on outsourcing more and more key tasks, you can drastically reduce operating costs. This can be pivotal when you’re facing periods of economic downturn, and feel sure that the business wouldn’t be able to weather the upcoming storm.
2. See Greater Efficiency
The longer the chain of management, the more opportunities there are for hold-ups. Restructuring the business and removing links that the chain can do without can boost efficiency and communication, and allow the remaining workforce to focus on core business, rather than getting bogged down in lengthy back-and-forth.
To make up for a reduced workforce, you may also look into boosting operational efficiency through your reliance on tech.
3. Be More Resilient to Change
No business exists in a vacuum, and the past few years have proven quite how much – and how quickly – things can change, even for businesses and industries that would have considered themselves well-equipped to deal with the demands of the 2020s.
We can’t foresee everything that lurks just around the corner, but we can be quick to adapt – provided we know how. Restructuring the business is drastic action, but recognising the benefits quickly could be exactly what you need to stay one step ahead of the competition.
4. Give Your Employees More of a Stake in the Business’ Success…
Restructuring a business isn’t solely about reducing the size of the core team and cutting back on costs. It may be the case that you choose to embrace employee ownership through a share scheme, which will help you to build a much more invested workforce who can really engage with the business’ development. Employee-owned companies saw retention boosted three-fold, according to this article from Forbes.
5. And, in Turn, Boost Engagement and Satisfaction
Many businesses that have embraced an employee ownership scheme have found a significant boost to overall employee satisfaction, which can have a big impact on customer engagement, too. Training, job security and a greater sense of equality between