We know that there are several signs that may help you know when it is time for your company to be restructured. No matter if it is organizationally or financially, collaborators and company owners can easily know when significant changes need to take place.

1. How to know
when it is time to
restructure your
company?
By Suzzanne UhlandImage courtesy of Kaboompics // Karolina at Pexels.com

2. For company owners, it is hard sometimes to
know when they should restructure their
companies. It could be because of personal
reasons or only because of stubbornness.
Regardless the reasons, when difficult times are
knocking on the door, we need to hear them
and start doing something to prevent or fix
financial problems.
Restructuring a company is probably one of the
best things you could do in order to stay afloat and
pursue success. It is a way to avoid dodgeballs and
stay free of debt or to pay one that has the
potential to kill your business.

3. It is not meant to do your company any harm,
nonetheless, it will definitely change the way things
were working around.
There are mainly two options for those who need
to restructure their business. The first one is related
to restructuring the way the company is
organized. This includes the collaborators,
processes, operations, daily activities,
procedures, computer systems, advisors,
networks, and location, among other items.

4. The second option to restructure a business
implies doing it financially. This alternative
involves cutting back expenses, setting priorities,
canceling contracts, closing or relocating
facilities, selling assets, changing products and
service lines, and doing pretty much anything
that could help your company recover its shape
–financially speaking.
Having all that said, how do you know it is time
for you to restructure your company?

5. We know that there are several signs that may
help you know when it is time for your company
to be restructured. No matter if it is
organizationally or financially, collaborators and
company owners can easily know when
significant changes need to take place.

6. Profit stopped growing
If your company used to grow in a consistent
way in time and suddenly stopped growing, it
means that some changes need to take place in
order for it to keep on growing.
Those who are in charge of the financial area in
any company know that profit margins talk a lot
about a company’s health. They show you if
what you are offering is actually appealing to
your market, if there are enough people out
there to buy it, and if the collaborators and
suppliers linked to your company are doing a
good job.

7. A good way to see if your company needs to be
restructured based on its profitability would be to
audit all its members. This will allow you to know
where the money is going, how the sales are
being done and handled and will help you
counteract in the presence of unpleasant
surprises.

8. Demoralized team
When the morale is low among your teams, it
means that something is not working well. There
are numerous things that can be harmful to
morale inside your organization. Some of these
things include neglecting your team’s needs,
making decisions poorly, breaking promises, not
giving constructive feedback, having cancerous
co-workers, low salaries, and favoritism or simply
managing the institution in a selfish way without
thinking of the people that work in it.

9. When company owners and managers fail in
paying attention to all these details, morale
decreases and so does productivity and sales. It
is vital to keep in mind that a successful
company is a group of motivated people
working hard to satisfy the needs and wants of
others.
As a part of a restructuring plan, managers need
to make organizational improvements regarding
the way the company works for both the internal
and the external client. It is crucial to do this
promptly, before the consequences of having a
low morale start getting in the way to success.

10. Same old, same old
In the business world, things move fast and
systems tend to become obsolete very quickly.
This means that you need to change and renew
the things that you set for your company a few
years ago. Old systems just as old habits will
never help you move further away.
Being able to identify the things that are obsolete
inside your organization, will help you know
where restructuring needs to take place.

11. Systems nowadays work differently. This doesn’t’
mean they are more complicated. It just means
that they are tailored made based on the
particular needs of companies and need to be
taken care of keeping that logic in mind.
When they are changed and used properly, they
can help your company grow and evolve.

12. Watch out for inefficiencies
If you are able to identify spots in your
organization where money and time are simply
being wasted, it is the moment for you to
restructure your organization.
Usually, what causes inefficiencies is people and
the decisions they make or the amount of money
they make compared to their salaries. The higher
the salaries and less relevant the tasks are, or the
little the results, the higher the inefficiency.

13. Being aware of these inefficiencies will allow you
to make some important changes and help your
business grow.
Related: Restructure, merge, or do nothing?
What you need to know by Suzzanne Uhland