Major investment into any company is generally a good thing, as with the recent example of Sports Leagues (Leicester), the Freemans Common-based sports venue that has been taken over by a consortium.
But if you are renaming the company to suit your own tastes as its new owner, you need to make sure the new details are there for everyone to see – including debtors and creditors alike – so that you do not become an effigy on the bonfire of your vanity.
The six-figure deal for Sports Leagues (Leicester), as reported in the Leicester Mercury, should see ten new jobs created in administrative and customer service roles, and is expected to increase the range of sports on offer at the facility.
As part of the deal, Sports Leagues (Leicester) is being renamed as Leicester Sports Centre – and this is where things could begin to get complicated for the new consortium owners.
When you make any substantial changes to a company, you need to keep a close eye on its incomings and outgoings to make sure nothing is missed as the fine details change.
A name change or bank account details change in particular can be disruptive, as debtors and creditors alike may not recognise the new details as belonging to the same supplier or client.
In the case of creditors, this can lead to your own bills going unpaid, as your supplier might not know where to take the funds from – and deciding whose fault that is at a later date can be messy enough.
But it is equally important to ensure that all debtors – regardless of how little they owe to the company – are not given any excuse to leave their bills unpaid as the organisation settles into its new identity.
For these reasons, effective credit control is a crucial element in good change management practice and, whether your company is big or small, you may benefit from external assistance to help make sure you don’t miss any of the fine details.