Has your business grown “Arms and Legs” over the years?
Has it become frustrating and difficult to control and to keep on top of your business as it's evolved and developed?
Chances are, expenses have run away, margins have been eroded, you are top heavy with management. There's now more waste in materials and idle time, than when your business was smaller, leaner, and more manageable. Business restructuring for Cumbria businesses can turn the tide against this overwhelming feeling and trend.
Why obtaining Business Restructuring Services Can Ease Transitions
Often during a positive growth period and when things are going well it is natural that many businesses add new services and products to their lines. You may collaborate with new partners on projects, expand and invest in your own business or by buying out a similar business, which is another strategy you might have adopted. The goal may have been to obtain their market share or to increase your footprint across the region .
However, we are now in unprecedented times and looking forward there will be a “New Normal” Therefore in these unpredictably changing and turbulent times, it is essential that you fully audit the business and do so, going forward, at least annually but ideally every quarter.
The key steps to review when carrying out business restructuring and transformation
- Determine which products and services are your best sellers.
- Calculate each product or service cost against sales so that you know where you make your best margins.
- Analyse which sectors and types of customers are low hassle, pay on time and likely to expand.
This strategy allows you to understand clearly where the scope and future opportunities are for your business and increase sales too.
It is also wise to carry out an external Macro Market Analysis (PESTLE) along with a Micro Market Analysis as part of a business review every 6 months. Learning what your competitors and customers are doing is an essential first step. This gives you the data to consider restructuring your organisation to take advantage to any changes in the market. You may find a gap in the market on which to capitalise or an opportunity to be a first mover into a new sector. Through involving some of your managers and key staff in this exercise, this will inspire new product or services or determine a new approach and sales channel to approach your existing market. In some cases, it may be just to focus on a strategy to ensure your business survives.
An annual Strategy Review is not just about reviewing last year’s forecasts. It is much more than adding or subtracting a few percentage points on the previous year’s accounts and budgets. It is about starting with a blank sheet of paper and doing a Zero up budgeting and forecasting exercise on Sales, General and Administrative expenses (SG&A), then adjusting your operations based on your findings.
The hardest and most difficult part is to implement a successful business change plan
This is probably where you will need assistance, advice, and professional consultation to re-align your business resources and capabilities. With support, if you can identify where you can continue to maximise and build valuable customer relationships and the increasing revenue these generate along with finding efficiencies within your business processes, you will be able to better position the business to attract and engage with the target clients you need and potentially make more money, margin, and profitability.
Business Restructuring Advisory Support
At Peter Fleming Business Consultancy we offer Business Restructuring Consultation and Business Restructuring Advice. Over the years we have successfully advised and supported businesses of all sizes.
From supporting companies to develop the business case for restructuring a department or divisions through to restructuring whole organisations.
In fact, we’ve successfully reorganised department teams and businesses through the last 3 major recessions along with realigning whole divisions due to changing market conditions.
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Please note that should you decide to restructure your business you will require additional support.
We can assist through bringing in associates such as:
Organisational Development Specialists
Accounts and Finance Advisers
Digital Transformation Specialists who can introduce technology to improve efficiency in operations, customer, and consumer interaction online and service levels
Covid19 impact and business downturn
Is your business in terminal decline? Is your market not likely to recover in the short to medium term? In this situation it is worth considering professional advice from a Business Insolvency Practitioner. We are more than happy to act on your behalf, should this be a difficult, challenging situation and period for you and your family