Looking at the headlines and jumping to the worst-case scenario in economic instability is straightforward. If you’re experiencing a downward trend in your business, look at your metrics and ask yourself a series of questions:
If the outlook is grim, business downsizing might be your best option.
It’s important to note that downsizing shouldn’t begin or end with layoffs. Business downsizing must also include expense reduction, inventory control, tighter cash management, overtime restrictions, improved efficiency, duplication reduction, assortment rationalization, deal buying inventory, outsourcing, and anything else that can impact your bottom line.
Before cutting staff, ask yourself: Are there other opportunities to increase revenue you’re overlooking? Are there obvious areas where you can tighten up cash flow and reallocate resources? How can you improve efficiency with the staff you currently have?
If you’ve done everything possible to reduce costs and are still in a bind, layoffs might be the best option. It’s challenging to decide which employees should go and which should stay. Here are a few employee downsizing factors to consider:
Once you’ve decided who to cut, here are some steps to take to make the employee downsizing process as easy as possible:
Downsizing your business requires a carefully devised tactical plan. A business coach can help. You can click here to schedule a complimentary coaching session to think through your approach.
Coach Dave
Starting a business is exciting, but budding entrepreneurs are often left with a surprising side…
For entrepreneurs, especially new business owners, the face of day-to-day business operations can change drastically…
Too many high-powered and talented executives believe they can use sheer momentum and energy to…
Business owners like to move quickly. Many times, urgency trumps planning. I have seen this…
In my many years as a business executive coach, I’ve noticed one widespread occurrence in…
What is more critical to your business: finding new, more prominent clients or retaining smaller,…