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What is Business Simplification and Corporate Streamlining?
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Understanding company simplification and streamlining
Limited companies, particularly those which have experienced a noticeable period of growth either organically or via a series of acquisitions, can become burdened over time by an overly complex operating structure which can not only limit efficiency, but can also come with a serious financial cost.
When a company’s structure threatens to impede its operations, as well as its finances, it may be time to consider undergoing a process of business simplification to streamline its affairs, remove unnecessary layers of management, and boost performance.
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Business simplification is a restructuring process which aims to highlight non-performing elements of the company, refinance existing debt, or shed unnecessary levels of complexity, in order to make the company run smoother, operate more efficiently, all while reducing financial waste. After undergoing a period of simplification, the hope is that the business will be more cohesive and better able to direct energies, resources, as well as money towards the more profitable areas of the business.
Overly complex structures can mask a myriad of problems, making reporting and assessing performance difficult. When the efforts of one area are being dragged down by another, this can skew figures to such an extent that attributing accountability verges on the impossible. The same can also be said for analysing individual performers across the company, whose efforts may be going unnoticed.
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When a company is in difficulty, sometimes a process of financial and/or operational restructuring is needed. From CVAs through to Administration, there are a range of rescue and recovery options to help you get back on track.
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A simplified business is a more agile business, allowing you to better respond to evolving customer needs, or quickly pivot in an ever-changing marketplace.
As a business owner who has worked tirelessly to build up your company and its operations, it may seem counter-productive to look at ways of shedding these layers. However, ensuring optimum performance, particularly during challenging economic times, is paramount to the ongoing viability of any business. Taking steps to simplify your company now, could stand it in better stead for whatever the future has in store.
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After identifying non-performing areas of the company, we can look at ways of reducing or divesting of these altogether, before addressing the causes of the complexity and honing your strategy for the future. We will work alongside you to devise a robust yet flexible plan, helping to ensure your business is best placed to navigate threats and seize upon opportunities which may present themselves over the coming years.
If you would like to discuss how simplifying your company could help improve performance, contact our team today to arrange a free no-obligation consultation with a business restructuring expert.
Further Reading on What is Business Simplification and Corporate Streamlining?
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