It is very easy to get used to stagnancy without realizing it in business which is why the business must be reviewed periodically and restructured once the need arises.
A lot of times, as entrepreneurs / business owners, we settle for less than we deserve because we don’t even know what else is out there or what we should be striving for.
Business owners tend to wonder why they need to restructure their businesses and when the right time is to do so.
We decided to put this together for business owners to know when they need to restructure their businesses:
- No plan / road-map for the company – When there is no road-map, plan or direction for the company it is an automatic red flag and means that the business needs to be re-structured. This is because the business does not know where exactly it is heading and as we know, a business that has no plan has inevitably planned to fail.
- Stagnancy – As a company, you will know when you are stagnant and not particularly moving forward. Take a look at your data (numbers) and ask yourself the following questions:
- When last did you get a new customer?
- Are your sales increasing or decreasing?
- How are your referrals? etc.
- No expansion or variation of products – Every business must evolve, if you are not evolving it means you are not growing and that requires some re-structuring. From time to time, you need to expand your products and / or services, to further cater to the needs of your clients to ensure you are growing with them and not stagnant or outdated which could lead to them being snatched by the competition.
- Decline in sales – When you are experiencing a major decline in sales you need to take a step back and think then consider re-structuring your business. There are various cycles in business but when you recognize some of the other symptoms along side this, then you probably require some re-structuring to be done.
- High employee turnover – As a business owner one of the most important assets you have are your people, your team, your employees, your staff as they are the ones who hold the vision and execute the goals of the company. Every time an employee leaves without a proper succession plan, it one way or the other hinders the growth of the company as more time will be spent searching for a replacement and training the new intake. This can be avoided when there is a proper plan, a structure and a comfortable working environment for people to work and grow.
So, how is business and when are you re-structuring your business?