5 WAYS TO RESTRUCTURE AN UNDERPERFORMING BUSINESS (UPB).

5 WAYS TO RESTRUCTURE AN UNDERPERFORMING BUSINESS

1. Meaning of an underperforming Business (UPB)

In simple terms, an UPB is one in which sales and profit margin has dropped below it's net profit. In other words, not making as much money, income and profit it USUALLY make.

2. Reasons for an UPB:

A. Lack of Legal Compliance (that in turn attracts fines, penalities, default fees which you are obliged to compulsorily pay from the money that is not readily available or risk the chance of losing the business totally)

A. Poor cash flow management?

B. Losing control of your business finances eg due to debt issues or unpaid charges

C. Bad planning, structure and a lack of business strategy

D. Weak and bad leadership skills eg not learning the rudiment of your kind of business industry, first.

E. Overdependence on a few big customers?and not sourcing for others to balance one's clientele.

3. HOW TO FIX AN UPB:

There are so many ways, but I will compress them into 3?

A. Identify the actual problem (no need to pretend about it, you just have to be transparent, truthful and really sincere with yourself)

?The best and most proactive way to identify the problem(s) in an UPB is to engage an external consultant (why?) you may ask.?

Let me just state 2 reasons here:

?1. For thoroughness

?2. Office politics (I did a writeup on "5 MAJOR REASONS WHY YOU NEED AN EXTERNAL CONSULTANT IF YOUR BUSINESS IS UNDERPERFORMING")

B. Find out possible solutions and go for the best option, immediately.?

In other words, fix the problem ASAP, further delay will cause further catastrophe

C. Engage a Debt Recovery Lawyer and Insolvency Practitioner to help you navigate through the challenges;

Truth be told, if you could do it yourself, your would not have an UPB in the first place.

Let the Experts do their job.

4. PRACTICAL SOLUTION(S):

One of the cause for an UPB is Lack of Legal compliance, which most times attracts legal fines that must be paid.

The question is, why not do certain things in time and pay the stipend that the government requires from you, rather than, waiting till when it is late to pay the actual sum plus fine.

Let us take for an example a post-incorporation known as annual returns.

Let me ask you, when last did you file your business annual returns (ARs)

You can not remember?

Or

You do not have an idea what that is?

Whatever is the case; I have mapped out a solution for you by setting up a self-paced, DIY course tagged ANNUAL RETURNS MADE EASY?

This course will teach you how to file your ARs all by yourself from start to finish?

And guess what?

Once you have known it, you have known it for life

And since it is an annual exercise, you will be able to file your ARs yearly without any help from agent especially when we have a support group.

Do you have an UPB ? or you want to prevent running an UPB?

Your starting point is strict post-incorporation compliance

Join our waitlist for the #AnnualReturnsMadeEasy Class

https://chat.whatsapp.com/FxBFo916iv36ocfGh7R8Nh

?Remember, irrespective of the type of business you run, Legal Structure is the ULTIMATE!

I will see you soon!

Yours legal,

Precious Toju #TheStructureLady