Running a small business isn't easy. Inevitably, profits sometimes wane and customers may walk away. When that happens — maybe even before it does — it's time to make some changes. Occasionally, those changes can be small. If the wounds are large, however, the bandage will need to be big, too. Restructuring your business — reorganizing your employees, products and financials — might just be the big solution you need if your company:

1. Is in financial or legal distress.
2. Wants to re-focus its core business holdings.
3. Needs to adapt to rapid growth and organizational change.

Action Steps
The best contacts and resources to help you get it done

Evaluate your problems

Analyze your situation to determine if your problems have solutions. Are your company's ailments a symptom of its organization, or are they a sign that your business simply isn't viable? Restructuring can save a salvageable business, but it can't help a failed idea succeed.

I recommend: A turnaround specialist can help you objectively evaluate your business' future and successfully restructure it; find one online courtesy of the Association of Certified Turnaround Professionals (ACTP). Another bull's-eye resource is the Turnaround Management Association which can also point you to turnaround specialists. TMA's resource listings of solution providers is helpful and extensive.

Develop a plan

Create a restructuring plan with which to grow your business and consolidate it. Share the plan with your managers, staff and important third parties, including your creditors and vendors.

I recommend: A restructuring plan should have all the features of a regular business plan. Revisit business plan basics and create a new plan with software, such as Business Plan Pro.

Realign your team

Restructuring should include reorganization of your employees. Start at the top with an evaluation of your management team and work your way down the company totem pole. Replace weak members of your team and eliminate extraneous positions.

I recommend: It's important to handle employee relations delicately while you restructure. Strategic restructuring firms like La Piana Associates can provide tips for communicating effectively with your employees during times of change.

Restructure your debts

Use the restructuring process to put your finances in order. Take out new loans, if necessary, to fund restructuring, but work with your accountant to make sure your fiscal plans are sound.

I recommend: Find an accountant who specializes in small businesses to help you restructure your finances and your debt; find one online courtesy of the National Association of Small Business Accountants (NASBA).

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Lower costs by building intimate relationships with a small number of vendors. Keep them abreast of your company's changes and work with them to maintain affordable service as you move forward with reorganization.
• •  Restructuring can be as simple as moving things around; be willing to shift financial and personnel resources from less profitable projects to those that make you the most money.
• •  As you restructure, maintain high customer service standards by answering clients' questions promptly and honestly. Instead of hiding changes from your customers, use restructuring as a means for communicating with them.
• •  Consider strategic restructuring, whereby you'll partner with another business - via a merger or joint venture, for instance - in order to save yours.
• •  A restructured company needs entirely new policies and procedures. Wipe your slate clean and meet with remaining employees often to present company goals and get input on company culture.