No one ever wants to downsize their business, but sometimes it is necessary in order for your company to survive. When you start to experience a reduction in your revenues and turnover, it might be time to think about the unthinkable.
Don’t worry, though; it is entirely possible to make your downsizing a complete success. Your business might even come away from it stronger and ready to grow again. You just need to follow these tips to help you downsize effectively.
Stick To Your Plan
It is absolutely necessary to draw up a plan for your downsizing. Think of this as a replacement business plan. No matter what happens to your business or the state of the economy during your downsizing process, it is important to stick to the plan. Even if you think that things are starting to pick up for your business, that doesn’t mean it could survive without downsizing. It’s best to carry on with your plan and then start growing it once you are sure it has a chance of surviving.
Care About Your Employees
Your employees are going to be greatly affected by the big changes in your company. So, it’s important that you listen to all of their opinions and worries. This employee engagement company has lots of tools that can help you gather feedback from your workers. Once you know what worries them, you will be able to figure out how to best support them during this difficult period. If you do need to start making layoffs, you need to remember that all of your employees are individuals and treat them with the respect and dignity that they deserve.
Make Cuts Equally
Once you start to make cuts to your business, you need to ensure that they are made equally across the board. It isn’t fair for one department to take the brunt of all the cuts, so you need to cut funds equally for every department. By doing this, you will also find that you don’t have to completely close down whole departments or divisions of your business. Ideally, you need to make sure that your business is still able to carry out the same functions, and that is possible with equal cuts.
Take Personal Cuts
When you are making all these cuts to your company, it is important that you also make some that will affect you directly. This is good for company morale as it shows that you aren’t just making cuts to save your own skin. One way to take a hit is to reduce your income from the company. If you do this rather than reducing your employees’ wages, you might even be seen as something of a hero! However, if it looks like you are going through the downsizing process unscathed, your employees might start to turn against you.
Downsizing is a difficult process, especially for small businesses, but there is no reason for it to spell the end of your company. Just make sure you follow these tips!