On Business Changes: 3 Signs You Need to Restructure Your Company
Nothing can compare to the feeling of launching a business—building a foundation from the ground up and seeing the fruits of your efforts grow. Finally, you have your own business! Not everyone has the guts to become independent and sell their ideas to the world; as such, it definitely is a feat worth celebrating!
Starting a business is a remarkable accomplishment, but it’s only the beginning—you’re bound to encounter many challenges, make costly mistakes, and find yourself in sticky situations that may push you to the brink of failure.
But you probably already know that, don’t you?
Steering Clear of Failure
Many businesses are launched every year, but just as many companies collapse at the same time. When you’re a rookie entrepreneur, it can be easy to find yourself in difficult predicaments and financial trouble.
But you can’t let yourself be overwhelmed by them! If you want to break your streak of failures, perhaps it’s high time you changed something within your company, such as your management team, marketing campaign, and most especially, your business structure.
Making the Wrong Decision
Many decisions are made early in the process of starting a business, and not all of them may turn out to be correct. If you feel like your company is on the verge of failing, you should look within and reevaluate.
Of all the worst things you can get wrong, the business structure is at the very top of the list. Getting your business structure right is important, as it determines the distribution of profits, your company’s obligations, and how much taxes your organisation owes.
If you choose the wrong business structure, expect that you will have personal liability issues, legal complications, and limited investment opportunities. No business accountant will be able to help you with your tax problems then! When you don’t restructure your business as soon as possible, much less realise that you have a wrong business structure, you can kiss success goodbye!
Do You Need to Restructure?
Not every entrepreneur will find it easy to determine whether they have the wrong business structure, which is why we have compiled the top signs that tell whether your company needs restructuring. Read through our list of the most common indications of trouble below.
Losing to the Competition
You’re a small business that just started, so it’s understandable that you’re not number one. But when you’re not number two, number three, or even number four in your industry, there must be something wrong with how your company is being run.
Are things not going well? Are you no longer growing? If you’re no longer growing or can’t keep up with the competition, you may need to change your business structure as needed. Maybe a new business structure is the major change you need to turn things around for the better!
No business accountant can help you increase your revenue, not even the best ones. When your business’s revenue is declining, you need to act accordingly to retain your current customers and possibly acquire new ones.
Businesses grow, and what you started with may not be compatible with how your company is now. In times like these, you need to rethink your strategies and perhaps change your business structure to see better results and exponential growth. Make sure to seek advice from a professional, such as a business accountant, lawyer, or solicitor, before making this change.
Let our business accountants in the Gold Coast guide you through your business restructuring! New Wave Accounting provides end-to-end accounting and bookkeeping services that help scale & grow businesses in the area. We have created tailored solutions for over 600 companies to help them reach their potential. Book a FREE strategy session today!