Got your business structure right? How to know when it is time to restructure.
Once upon a start-up, you sat down in your lounge room with a dream, a wing and a prayer. You slapped together a plan for the business and went on your way.
Or, maybe you’ve been handed an established company and you’re on a path to modernising a well oiled machine.
Here’s why “Set & Forget” just straight up does not apply to your business structure.
Predicting the future isn’t only hard, it’s not possible.
We’ve all been there, ourselves included. When Kindred Accounting was started in 2018, in the spare room of Andrew & Elyse Haynes house, they didn’t know if they ever even wanted to put on another team member. Flash forward to now and we obviously have a better idea of what we want and where we want to go, but it takes time to realise what you really want in life, and in business.
It’s ok to change your mind and direction.
Having a dream is great, but it’s an ever evolving process. Testing and trialling if you have a product or service that people even want, needs to happen. Maybe you were bang on and your offering is going super well- PERFECT. The dream doesn’t need to pivot or die. But it is likely how things work internally will need to evolve along with your success.
Maybe you started out on your own, but now you want to employ someone.
When the dream was being born, perhaps you liked the idea of being a Sole Trader. Cool. But now you want to bring an employee on, and things are getting complicated. That’s where your accountant needs to step in, to help you navigate the necessary changes, so you don’t just change for the immediate requirements, but you’re considering the longer term impact for your business. Careful evaluation is required to help you optimise your structure, so it will best align with your future goals.
The Importance of Company Structure & Restructure
Your company structure is the legal framework within which your business operates, including its ownership, management, and operational processes. A well-designed structure is essential for organising resources, minimising risks, and maximising efficiency.
You want to get it right.
When your business structure is no longer serving it’s purpose, if it’s not reducing exposure, risk, saving you money and increasing your profit, then it’s time to think about your options for restructure.
We would consider restructuring ownership, adjusting management roles, and streamlining your operational processes. By undertaking a restructure, your business can adapt to ever evolving market conditions, improve on financial performance, and strategically position yourself for future growth.
Is a business restructure something you’ve thought about?
