Helping your business to overcome a rocky patch may seem like a daunting prospect, but it is possible, and there are a lot of ways to start turning things around. Increasing profitability, boosting tax efficiency, and improving your employees’ experiences with the company are all tried and tested alternatives to burying your head in the sand, and wondering how (and when) things are going to get better.
Whether you switch from a standard partnership to an LLP or start by restructuring your business’ share capital (or something else), here is what you need to know.
Increase Revenue Quickly
If you’re looking to boost profitability and transform your monthly figures, then a merger or acquisition may be the most promising option for your business. Absorbing a company’s existing assets, or simply buying it outright, means opening yourself up to a new level of income and production capacity.
Obviously, it’s rarely as simple as that, and you’ll want to reach out to a qualified corporate solicitor to work out whether or not your business is in the right shape to take on this new challenge.
Improve Cash Flow and Tax Efficiency
By pooling the advice from a chartered accountant and experienced corporate law solicitors, there are ways to boost cash flow (without necessarily absorbing another company) and ensuring that your business is made more tax efficient. The ways in which a business is structured have major tax implications, but it’s unlikely you’ll be able to work out if there is a better way to do things without specialist help.
Your business’ assets are key to its ability not only to grow, but to stay afloat, too. Moving those assets into a separate company could be exactly what you need to ensure that they are safeguarded against new risks, and that you’re better protected against future issues.
Embrace a Changing Market
Businesses can start to flounder when the market pulls ahead, and they aren’t quick enough to keep up. This doesn’t need to be a nail in the coffin, however, and restructuring your business can be the best way to reposition itself within a market that is in constant evolution.
Preparing for the future isn’t just a case of writing succession or exit plans – it’s about recognising how the world around you is changing, and how you can move with the tide as it ebbs and flows.
Improve Employee Satisfaction
If your business is starting to feel stuck in the mud, then there is a good chance your employees are starting to feel the same way, too. The standard perks and bonuses go so far, but plenty of businesses are looking to embrace new ways of incentivising their employees. Some, for instance, are now seeking to restructure the business’ shares in order to create a share scheme, which gives employees a greater stake in the business and helps to boost loyalty and retention.
Most businesses will go through rocky patches – times of stagnation or, worse still, regression. It’s a difficult time, but it’s not necessarily the beginning of the end, provided you can get proactive about restructuring the business and preparing it for a new phase of life.