{"id":19891,"date":"2023-01-19T14:10:18","date_gmt":"2023-01-19T14:10:18","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/blogs\/?p=19891"},"modified":"2023-01-19T14:10:20","modified_gmt":"2023-01-19T14:10:20","slug":"what-is-the-reason-for-changing-a-business-structure","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/blogs\/what-is-the-reason-for-changing-a-business-structure\/","title":{"rendered":"What is the reason for changing a business structure?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2023\/01\/M.T.-Blog-Graphic-02.12.2022-6-1024x576.png\" alt=\"\" class=\"wp-image-19892\" srcset=\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2023\/01\/M.T.-Blog-Graphic-02.12.2022-6-1024x576.png 1024w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2023\/01\/M.T.-Blog-Graphic-02.12.2022-6-300x169.png 300w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2023\/01\/M.T.-Blog-Graphic-02.12.2022-6-768x432.png 768w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2023\/01\/M.T.-Blog-Graphic-02.12.2022-6.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>There are many reasons for changing how a business operates which may include changing relationships between business and customers.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>As online trading grows exponentially, businesses are also pursuing new economic activities in virtual markets.<\/p>\n\n\n\n<p>Reasons for change could include:<\/p>\n\n\n\n<p><strong>Innovative technology<\/strong><\/p>\n\n\n\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\n\n\n<p><strong>New business opportunities<\/strong><\/p>\n\n\n\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\n\n\n<p><strong>Deficient performance<\/strong><\/p>\n\n\n\n<p>Changes are required when business goals and objectives are not being met. It may require re-organisation of working practices.<\/p>\n\n\n\n<p>You may also wish to change the structure of your business operations to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><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><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 business.<\/li><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><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><\/ul>\n\n\n\n<p>If you have found this article useful, it is part of a series of articles offering business advice.&nbsp;<\/p>\n\n\n\n<p><strong>Need help with growth and changing your business model? Contact us today.<\/strong><strong><\/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.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,33],"tags":[],"class_list":["post-19891","post","type-post","status-publish","format-standard","hentry","category-blog","category-business-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/comments?post=19891"}],"version-history":[{"count":1,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19891\/revisions"}],"predecessor-version":[{"id":19893,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19891\/revisions\/19893"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/media?parent=19891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/categories?post=19891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/tags?post=19891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}