The decision to restructure your business should not be taken lightly. Changing the way you do everything can unlock your company’s potential and increase revenue — or it can lead to disaster.
Timing is key. Here are six signs that you should consider restructuring your company soon.
- You and your staff have been working hard for years without any increased cash flow or other positive results.
- Your revenue is declining, and the business is not hitting its key performance metrics.
- You are having client turnover problems.
- You believe your customers would benefit from a restructuring.
- There does not seem to be a way for the business to improve under your current model.
- You understand the trade-offs of the new structure and are confident that the positives would outweigh the negatives.
Whether it involves a bankruptcy filing or not, restructuring can breathe new life into a struggling business. A new business model, strategy or organizational structure can eliminate the issues holding you back and put you in a position to overcome the competition. So can a merger, acquisition or new joint venture.
Guidance from a trustworthy source
But restructuring is a huge commitment. Before starting, you and your partners need to know that it is the right choice and that you have chosen the right way to go about it. Working with an experienced business attorney could be the answer. Advice from a lawyer who understands the issues involved and can answer your questions clearly will help you find the course of action with the highest potential for success and minimal risk of loss or legal problems.