Going through the process of restructuring your business can be difficult enough that you should consider business reorganization consulting in order to make sure the process goes smoothly for everyone involved. With the economy being the way it is right now, many businesses of all sizes and industries are changing the way that they operate. Some are scaling back on operations by reducing staff or changing locations to cut costs. Others are repurposing their staff and consolidating roles.
During economic times like this, it isn’t uncommon to see mergers and acquisitions occur so that a company on the brink of failure can keep its doors open. Nor is it uncommon to see a company completely rebrand itself and radically change its offerings in order to weather an economic downturn.
Regardless of the reason why your company is changing the way it does things, having business reorganization consulting can make sure that you’re able to turn your company around and get through the restructuring process without missing a step that could come back to haunt you later.
So what are some of the areas that you need to cover when you’re restructuring? Let’s take a look.
Key Areas and Characteristics
No one walks away unaffected when it comes to reorganizing a company. From the executives at the very top to the newest entry-level hires, everyone is going to feel the impact of this major event one way or another.
As a result, this fact extends to all areas of your company as well. Departments and practices like management, marketing, and accounting are all going to change in some way. Beyond those, you need to consider areas like:
- Your Assets – How will these be affected when you reorganize?
Depending on the nature of the restructuring, some might remain intact, but others might have to be sold in order to generate revenue during the restructuring process. If some of your assets are underutilized, it might be in your best interest to dump them and keep them from becoming liabilities.
- Basic Operations – Restructuring means taking a look at every part of your business, including the everyday practices that turn the wheels of the company.
In some instances, you’ll have to ask yourself if certain aspects of your operation can be outsourced for more efficient, more cost-effective output than what your company currently produces.
- Your Reputation – Business reorganization consulting would, in part, advise you on how to maintain your relationship with your customers through effective public relations that assures them your restructuring will do nothing but benefit them.
As you know, customers vote with their dollars, so you want to do everything that you can to make sure that you don’t lose your base as your company changes its operations.
- Your Plan – Without a strong business plan, you’re not going to get anywhere. That’s why it’s important to know exactly where you’re going as you work through your restructuring. You can use it to assess the current state of your business and establish goals that you want to reach, as well as a timeline for when you want to reach them.
- Your Debt – Business reorganization consulting will help you make sense of your debt and how it relates to your plans to restructure.
It’s important that you have a strong understanding of your debt obligations at all times, and that means, among other things, carefully monitoring payments that you make on it. It’s possible that, in analyzing this part of your business, you will have to rely on some negotiations with your creditors. It’s important to make sure that all of your affairs are in order when you’re reorganizing your company’s operations and the areas discussed on this page are just a few that you’ll need to be familiar with during the process.
With business reorganization consulting, you can make sure that each area of your business gets the attention it needs during restructuring, so that you’ll be able to adopt new business practices without any trouble.
Remember, running a business successfully does not need to be complicated. Keep it simple!
For more interesting topics to help you successfully manage the challenges of growing your business profitably, please search our blog at our website www.portalcfo.com.
Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at manny@portalcfo.com.