Because your service station is constantly evolving, there may come a time when restructuring is necessary. Reasons for restructuring your business could include a shift in legal structure, an ownership change, or a required change in operation and organisation.
Legal Structure
Your service station may qualify as a sole trader, a partnership, or a company. As your business grows, its legal entity may change.
Sole Trader Shifting to Company
A sole trader has no distinction between their personal and business assets, but a company is a separate legal entity.
Sole Trader Shifting to Partnership
Adding a partner to your company can add knowledge and expertise, but putting an agreement in place is important to avoid future disagreements.
Partnership Shifting to Company
This involves dissolving a partnership, which gives you the freedom to set up a company in a traditional manner.
Business Ownership Change
When a business changes owners, the operational and organisational structure goes through a complete overhaul. This is done so the business can be lined up with the vision of the new owner.
Change in Operation and Organisation
Your service station should always be growing and evolving, and in order to make this happen, sometimes a change in operational and organisational structures needs to occur. Operational structures cover processes at your service station, and organisational structures cover how people are organised within your business.
What to Consider
There are a few details that should be at the front of your mind when your service station is going through a period of restructuring.
The restructure should align with the business goals of your service station
The whole point of restructuring your business is to facilitate change that helps you meet your goals. If the restructuring doesn’t align with your goals, there is no point to it.
Always have a sturdy change management plan
A change management plan controls the budget, schedule, scope, communication, and resources, and can control the impact that change can have on your service station and your staff.
Have a handle on tax implications/obligations
The amount you pay in taxes may change due to your business restructure.
Restructuring Your Service Station
Making structural changes at your service station could make for a more profitable and efficient business. To make sure that you complete your restructure the right way, contact us and we will help you make sure it is done properly.