Downsize before it’s too late, then act like a tree. If a tree does not grow it will die and so will your business!
Downsize, to those who suffer the consequences, it’s a nasty word. It means loss of jobs , the loss of incomes. For the business owner, it is one of the hardest parts of being the boss.
Several weeks ago, I wrote about re-inventing your business. In today’s economy, each owner must look at his or her business and decide what it takes to grow in a profitable direction. Your current staff may not meet those qualifications. Keeping people on and paying them when your business is going in the red each month is a bad decision. If you use all your capital to pay unproductive employees because they worked hard in the past, will result in your closing your business and losing the opportunity to grow in a different direction.
The days of working for one firm and then retiring with a “gold watch” are gone. Most employees know that, and they also need to change and explore new possibilities. As a business owner you don’t have to guarantee a life long employment. Communications is the key to laying people off, especially in a small business. Be honest about your current situation; yes it will hurt, but, in my opinion, a good person can find or create another job and if they can’t, perhaps they wee not right for your company.
Once you are down to your core group, which may be one person, take time to work on your business; explore what is needed in the community at this time and how you can best fit that need with your “new” firm. A simple business and marketing plan should follow and then the growth process begins again.
Quick market intelligence is a boundary-busting technique aimed at measuring the pulse of the marketplace and redirecting us to meet customer needs.
Have a great day!