Should I restructure my business?
As my design company has grown my role has changed from being very creative to simply managing the business. What options are open to me in terms of restructuring the company, re-skilling to run a larger business, while retaining my strengths, or should I just accept the situation?
A. David Davidson from Lloyds TSB writes:
This is a fairly common situation for growing businesses. Entrepreneurs share characteristics such as self-confidence, motivation, opportunism, pro-activity and a willingness to take greater risks. When deciding on the direction to take, identify where your strengths and skills lie and how you can best add value to the business. There are plenty of options open to you if you do wish to re-train or fill skills gaps, but you must be certain you’re prepared to make the commitment in terms of time and energy.
If you decide your talents are best suited to ‘managing’ then you’ll need the right creative and sales teams in place to carry on the work you began. You can do this by recruiting from outside the business or developing existing staff. The former can be costly and the outcomes unpredictable, whereas ‘growing’ your own people from within can provide more certainty. In addition, witnessing career progression can be a great motivator for others.
If you decide you want to get back to your entrepreneurial roots, you may need to restructure the business so others can do the day-to-day managing and feed back to you to ensure the company continues in the right direction. You’ll need to be prepared to take a step back from the coalface and be much less hands-on.
You will also need to take stock of your business’ future direction. Is fast growth desirable? Should you do it organically or by acquisition or merger? Or is there a need for consolidation? A well thought through business plan drawn up in consultation with others in the business can help to address these issues. Finally, choosing the right advisers – accountants, lawyers, bankers – who you can talk to about issues like these can be invaluable.