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RESTRUCTURING THE BUSINESS – THE ONLY THING TO DO POST COVID

Restructuring is modifying the business model of the company in terms of finances, operations, structure, debt, etc especially when the company is facing financial crises or any other pressure. A company might restructure due to its poor performance, lack of revenue from sales, lack of innovation and technology, or due to modernization in the economy. Therefore, companies make significant changes to their structure to grow in the market and to make more profits.

    

TYPES OF RESTRUCTURING

1. MERGERS & ACQUISITIONS - merger & acquisition can allow you to rapidly increase your profit, market reach, and production capacity. This can be done by acquiring a company or just a part of it or merging with a company that can lead to an expansion in your market potential. It is cost-effective and efficient at the same time.
2. Legal restructuring - Such restructuring takes place when there is a change in the legal norms of the company. There is a change in legal agreements, paperwork, ownership, etc.
3. Cost reduction - when the running cost of business is too high, reviewing or restructuring operations of the business can be beneficial. It can be done by reducing operational costs, reducing the number of employees, divesting the underperforming part of the business. It is also known as downsizing.
4. Downscoping - It refers to spin-off or some other means of eliminating business. It has a more positive effect on the firm's business.   

THE POST COVID RESTRUCTURING

The business world is and will always be a dynamic environment and change is the only constant thing in the business world. To be able to adapt to the change and recreate the business module is the only possible way to survive in the business world. The coronavirus pandemic (COVID-19) has badly hit the world and has strangled many sectors such as tourism, aviation, hospitality, etc. Not only this but the majority of the industries have shut down and have suffered huge losses due to the pandemic. The pandemic has truly shown the industries, their importance in the market as many giants are standing on the urge of Bankruptcy. so, it's high time to Rephrase, restructure and recreate what you do and step into the modern 'online', 'work from home' era. This is and it will be the new normal post covid. To survive in this modern changing post covid era, making your online presence count is a crucial step to go further. Therefore, companies understand the impact of the pandemic on their business, they should plan and implement it according to the future needs of the business. Finding new revenue is hard these days, so you should focus on what you have and multiply your revenue to make more out of it. Digital restructuring is the new place to adapt and expand your business.
1. Reduce the complexities of your business. Make it easy to understand the operation which will result in higher engagement from both staff and clients.
2. Focus on the pain points of the market and try to change the metric according to that, this will result in a flow of better margins, cost savings, and revenues.
3. Design and restructure your plan by changing the model and make your online presence count.
4. Reposition your product and its price in the market as per the customer needs.
5. Implement cash management processes and have cash reserves to work on different financial plans.
6. The most important thing above all is to rapidly execute solutions with operational changes.
The pandemic has been a huge shock that has seen a widespread reduction in businesses and a major downfall for many giants. Therefore, adapt to the change and let your business be the oxygen to the world. "The art of life lies in a constant readjustment to our surroundings."