{"id":4977,"date":"2023-01-17T16:02:40","date_gmt":"2023-01-17T16:02:40","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=4977"},"modified":"2023-01-17T16:02:44","modified_gmt":"2023-01-17T16:02:44","slug":"what-is-the-reason-for-changing-a-business-structure","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/what-is-the-reason-for-changing-a-business-structure\/","title":{"rendered":"What is the reason for changing a business structure?"},"content":{"rendered":"<p>There are many reasons for changing how a business operates which may include changing relationships between business and customers. As online trading grows exponentially, businesses are also pursuing new economic activities in virtual markets.<\/p>\n<p><!--more--><\/p>\n<p>Reasons for change could include:<\/p>\n<p><strong>Innovative technology<\/strong><\/p>\n<p>The identification of new cloud-based technology can lead to more efficient and economical methods, allowing for staff cost reductions and the ability to outsource some tasks.<\/p>\n<p><strong>New business opportunities<\/strong><\/p>\n<p>As the marketplace grows and evolves, products may become obsolete. In that case, businesses need to identify what is required to increase their portfolio, become more competitive and sell new products.<\/p>\n<p><strong>Deficient performance<\/strong><\/p>\n<p>Changes are required when business goals and objectives are not being met. It may require re-organisation of working practices.<\/p>\n<p>You may also wish to change the structure of your business operations to:<\/p>\n<ul>\n<li><strong>Become a limited company:<\/strong> A sole trader, for example, is open to personal risk and can face unlimited liability for any business debts. A limited company, as the name implies, will limit any liability.<\/li>\n<li><strong>Go for growth:<\/strong> To secure capital for expansion, it may be necessary to offer a potential investor a piece of the business in return, which may require you to create shares in the busines<\/li>\n<li><strong>Share the burden: <\/strong>It can be a lonely time if things are not going well, so taking on a partner can share potential risks and provide cover for sickness or holiday absence.<\/li>\n<li><strong>Introduce share schemes<\/strong>: You may wish to reward staff and a limited company allows for an employee share ownership plan. They only work within a structure that allows you to create and distribute shares, ie a limited company.<\/li>\n<\/ul>\n<p>If you have found this article useful, it is part of a series of articles offering business advice.<\/p>\n<p><strong>Need help with growth and changing your business model? Contact us today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many reasons for changing how a business operates which may include changing relationships between business and customers. As online trading grows exponentially, businesses are also pursuing new economic activities in virtual markets.<\/p>\n","protected":false},"author":2,"featured_media":4979,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,30,26],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4977"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4977"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4977\/revisions"}],"predecessor-version":[{"id":4978,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4977\/revisions\/4978"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4979"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}