Change in Small Business Structure

Change in Small Business Structure.

Inexpensive and simple to set up, sole proprietorships are generally more suitable for smaller enterprises with a single owner/manager who wants direct personal control. Costs are usually higher with partnerships and corporations, but it’s easier to raise investment capital, making them a better choice for larger enterprises. They also offer tax and legal advantages that may appeal to certain enterprises regardless of size.

Each individual involved when organisations or businesses go through the change process, is responsible for effectively responding to the process and supporting it in order for the change to happen without much negative consequences. Each one should be able to identify the reasons for this change and should be able to adapt to the effects of change on one’s own work. Individuals or teams involved in the implementation of the change process should occasionally review the effects of change on employees and processes and then record and analyse the outcomes.

Some ways in which the effects of change can be identified are discussed below.

  • Compare statistics and other information before and after the change was implemented
  • Observe for changes using statistical information, for example, organisation’s turn over, team performance reports, customer feedbacks, time taken to accomplish tasks, measure complexity of tasks, calculate costs, conduct meetings, discussions or supervisions to identify the effects of change, conduct surveys, etc.
  • Check to see the advantages and disadvantages over past practices, and check to see if any key relationships are affected, if any practices are affected negatively, if any areas of the business are affected, if the structure of the business is affected and so on.
  • When it comes to different groups, teams or departments, they will all have a different impact as a result of the change and hence survey departments and teams separately.
  • Check to see how employees have responded or reacted to change and note them down for analysis purpose. This can be done by having meetings, one-to-one discussions, taking feedbacks, questionnaires, etc.
  • Keep a check on the skills gained through the change process.
  • Carry out assessments on processes on which change was implemented and compare the results before and after change.

Whether you are thinking of starting a business from scratch or already own your business or planning to buying an existing business, choosing the right business structure can have a major impact on the future success of your enterprise as well as your personal tax and planning.

 

Benefits

  • The reason a good team works is because everyone brings something to the table, various pieces of knowledge being a key piece of that.
  • Two heads really are better than one when it comes to brainstorming. This is particularly true for start-ups.
  • Whether it be marketing, product pricing, growth plans, it is useful to have someone else to check your ideas and build off of them.
  • Whether your partner’s skills and experience complement or contrast with your own, a wider range of contacts, knowledge and capabilities is established within the organization.
  • A well-balanced business partnership combines the skills and knowledge of two or more people creating diversity and greater potential for achievement.
  • A business run by partners with multiple talents and visions significantly increases opportunities for expansion, and ultimately higher profits.
  • Creating a partnership also enhances motivation, morale and personal responsibility.
  • The exchange of opinions and ideas allows business owners to expand on already good ideas or replace poor ones.
  • Having a business partner gives you a virtual sounding board to bounce ideas off of and provides a sincere source of feedback.

It is advisable to consider a range of factors before making a decision about the type of business that you want to get into. Some important factors include the location and nature of your business, the number of people involved, your potential exposure to liability, taxation considerations, and the company’s financial requirements. Consulting an experienced legal professional and tax accountant is also important. Your professional advisors can help ensure that you are well informed on important matters like the legal and taxation issues that you may encounter. You must understand the personal and business implications of your decisions.

While it is clear that no change can make everyone happy, all employees must welcome a change in business strategies or functions, as a step towards a better future. In addition, an employer should make sure that no change is made in a way that it makes the employees feel at a loss. For the smooth functioning of a change that is implemented, it is important that the employee’s benefit be kept in mind. It is a good idea to get your employees involved in decision making. Use a voting system or collect anonymous feedback before implementing change.

Remember you can change your business structure as your business develops and circumstances change. However, while you are in it, make sure you have it well-planned and sorted, in terms of sustainability. Contact HyperEffects for our free one-hour session to learn about things that help your business grow. Also, if you need help in creating and maintaining a website, we are your answer to all the marketing and cyber development requirements.

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