In times of economic crisis, the
restructuring of the family business
can be the difference between closing a business or surviving with all the changes that have occurred in recent years.
There are many occasions in which the entrepreneur has serious emotional attachments that make it difficult for him to make decisions. Or also when you do not have enough knowledge to face a
process that will be vital in the company.
In these cases, the dismissal of staff is not always the best solution:sometimes it even means prolonging the agony.
Restructuring a family business is an effective and valid measure for entrepreneurship,and a way to refloat companies. Whatever the reason, you must know the keys to face this process with all the guarantees.
Next, we provide you with different keys.
Restructuring family businesses: Tips for developing changes
There is no longer talk of making changes for something to work, but sometimes different modifications are necessary to improve efficiency in a business.
In addition, when we refer to family businesses, these changes can be accompanied by a generational replacement,which manages to bring a fresh air to the business.
Keys to restructuring a family business
Here are the most important keys to completing a business restructuring:
The analysis of all processes in the restructuring of family businesses
With the analysis of the processes, the following questions must be launched: are they really necessary for the activity? Do they add value to customers or are they only sources of expenses and inefficiencies?
The criterion to be used could be how to be more productive
with the activity of the business,with fewer resources.
Grouping by activities
At this point, reference is made to the grouping of activities that can be achieved. avoid duplications,which not only do not contribute to the company but can block the business. Many companies grow and tasks become duplicated,either due to lack of communication or the simple fact that workers are incorporated little and little and perform the work in their own way.
These duplications can become common with information and data. Therefore, the search for solutions (usually computer, application-based) can help the business, managing to curb these problems.
Search for versatile workers in the company before reducing staff without thinking
First of all, you should analyze and look for the most versatile and active employees in the company,those who are more versatile. They can lead and motivate other employees.
Of course, if you plan to reduce staff,you should do it based on professional profiles,not only focus on salary. Sometimes a high salary is the difference between motivated or versatile staff with non-motivated staff.
Creating a vision for the future
For its development, it is vital that the company has motivation and shares a vision of the entire business.
With this, it is possible to create the energy that the company needs to get ahead,being more creative and counting on professionals who contribute the best to make the changes (especially in times of crisis).
Formulas for increasing sales
Yes, because no matter how much the company reduces expenses, there must always be a ‘cap’ that should never be cut.
At this time, the most feasible solution for
an optimal restructuring of the family business
is to increase revenues,so for this new customers must be attracted, focusing the company on retaining the current ones.
Regulations of the family business
If the company did not have regulations, it is time to create and respect it. If the company has it, the modifications can help your company grow.
How can restructuring be viable?
In the restructuring of the family business you must take into account the changes that are needed. In addition to the steps discussed above, it is essential to consider the size of the company.
Larger companies include mergers or spin-offsamong their decisions, while smaller ones outsource certain tasks.
Having a good idea for the change and
restructuring of the family business
is not enough, but it is necessary to know how to carry it out so that the idea does not fail.
Before making changes, the most important thing is to make an analysis that allows you to know that the improvements that are going to be introduced will favor the situation.
Above all, we must think about whether it is more profitable to make changes or it is better to leave everything as it is.
The restructuring of family businesses can be a complex task, but following these steps will make it easier for you to channel and make your company’s activity profitable.
Remember that in Ayce Laborytax you have
consultants specialized in family businesses
that offer you professional advice in case you are thinking of making changes that affect your family business.
Tell us your case and we will help you!