In this presentation, Suzzanne Uhland will show some of the most common reasons why companies need to be restructured. There are many reasons why this happens. Despite all that, it is vital for companies to identify where their problems are and what they should do in order to solve them.

1. BY SUZZANNE UHLAND
Reasons Why You Need to Restructure
Your Company

2. Reasons Why You Need to
Restructure Your Company
We talk about restructuring when things in a company
are not working like they should and need to be
changed. Corporate actions need to be taken when
companies stop being financially stable and their
income is not enough to cover up for their debts or even
their payroll. These actions may include a set of
strategies to improve the business or make it more
profitable. Cutting costs, reducing the size of the
company or selling its assets are some good examples of
restructuring.

3. Reasons Why You Need to
Restructure Your Company
In this presentation, Suzzanne Uhland will show some of
the most common reasons why companies need to be
restructured. A reduction in revenue may be because its
system is old or its processes are not working like they
were expected to. There are many reasons why this
happens. Despite all that, it is vital for companies to
identify where their problems are and what they should
do in order to solve them. Otherwise, it is very likely for
businesses to have extremely difficult times and go
bankrupt.
Related: Restructuring processes under today’s dynamic framework

4. Reasons Why You Need to
Restructure Your Company
Shrinking of profit margins
If you look at your company’s numbers and are able to
identify growth as a yearly trend, it means you have a healthy
company which is grown in time and supposedly is prepared
to cover up its expenses. If by any chance, you do the math
and realize that growth stopped and as a consequence profit
has also reduced, you may want to think about restructuring
the business.
The first thing you will need to do is check your expenses and
see if there have been any changes that may be depleting
your profit. If that is the case, examining the accounting books
may be useful to determine where cutbacks can be done.

5. Reasons Why You Need to
Restructure Your Company
Customers start leaving
The presence of customers determines if they are
satisfied or not with your product. If you constantly have
an active list of customers who want to consume your
products, it means you are doing well and the business
will be prone to keep growing. If on the contrary,
customers start leaving, it is time for you to evaluate if
restructuring is necessary.

6. Reasons Why You Need to
Restructure Your Company
In this particular matter, there are many external factors that
may affect the presence of customers in your business.
However, the only things that will for sure assure you that your
customers won’t leave are the relationship you have with
them. Usually, customers see companies as the partners who
would do anything to make their lives easier. If you fail to have
that kind of relationship with your customers, you better think
about ways to solve that situation.
There is more to this subject that hasn’t been said. Companies
also have customers inside, which are the employees. If they
too start leaving, it means that restructuring is needed and
depends highly on feedback given by the employees.

7. Reasons Why You Need to
Restructure Your Company
The team begs for change
It is very common to see how poor management affects morale in
the company’s team. You may want to start thinking about
restructuring your company if the team is evidently not happy with
the way things are being done. Most team members will always give
feedback to the company of the matters they believe affect the
work environment and the business profitability. When this feedback
is ignored and managers simply make decisions without thinking
about the team, companies tend to have lower moral, which in time
leads to more mistakes and less profit.
Drastic change is sometimes needed. Sadly, this change often takes
place after the team has been asking for it for too long. Managers
need to listen to their team and propose restructuring if that is what
is needed in order to make things work.

8. Reasons Why You Need to
Restructure Your Company
Old systems stop working
If your company has grown within time, its systems will
definitely need to be changed. Things should not operate in
the same way if you have 10 or 50 employees. As your
company grows, it is necessary for the same old systems to
change. Restructuring these systems will help you being more
efficient, therefore this decision will help you be more
profitable.
Some companies focus on a traditional way to do things,
ignoring the different possibilities available to make things
work in a better way. These companies neglecting change
are most likely to go bankrupt.

9. Reasons Why You Need to
Restructure Your Company
Number of employees
The number of employees hired by your company says a
lot about it when results are not what they were expected
to be. If you have inefficient processes, you may want to
reevaluate if they are being done by the right people.
Employees should always add value to their job, this way
they will add value to the company.
If, on the other hand, you have fewer employees and
things are also inefficient, you may want to analyze if you
need to hire more people or to restructure your processes
so they can be easily performed by fewer people.

10. Reasons Why You Need to
Restructure Your Company
In any case, this matter
is very important to
determine the number
of people you need to
hire in order to get
things efficiently done.
Let’s keep in mind that
they payroll is one of
the things that often
leads to restructuring,
so it needs to be
carefully examined.
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