Things to Do Before You Think About Downsizing Business
No entrepreneur starts a business with the view of having to one day downsize the business. Downsizing can mean that your business is not achieving the success you had hoped for. However, during the uncertainty, you may feel that there is no choice to keep the business protected.
However, what else could you do to save the business without having to downsize dramatically? Here are some things to consider when you feel as though you have no option but to downsize.
Why do you need to downsize?
Make sure that you really need to downsize your business. Take this as a last resort and not a shotgun decision that you may end up regretting down the line.
Many business owners will commonly assume the need to downsize when it may not be necessary at all. The decision can often be a response to rapid and unprecedented changes that feel out of their control. Go through the decision making process with a level head. You may end up surprising yourself with just how much can be done before deciding to downsize your business.
Think of other things that you can exhaust first before thinking of downsizing entirely.
Change where you work
Are lots of your staff team currently working from home, while you’re still paying rent on an office space? That’s one of the first places you can begin to cut costs and therefore help to keep your business afloat.
Even moving to a smaller office or using a coworking space can save a lot of money and work in ways that are more suited towards newer working patterns. In the process of moving, you will have to get rid of many items — some that can be sold to raise additional funds. Other things can be donated or disposed of appropriately.
Rejig your staff structures
Staff is another high cost but a necessary aspect of your business. However, if some roles don’t require a full-time worker, you may wish to consider outsourcing these roles to freelancers or through recruitment agencies. Examples of doing so would be to use agencies that specialize in IT consulting for small businesses in place of hiring a full-time IT employee.
You may also want to consider hiring a virtual PA who can support your administrative tasks. While they require some financial investment, you will save money over time in hiring or keeping your current staff structure.
If you have to let members of staff go
It’s never easy to let members of staff go. The people who will suffer the most through the process of downsizing are the people. Ensure you are supportive as possible to them, let them know that the door will be open to them should the business restore to its former success. Line them up with contacts so that they can excel later down the line.
A few changes can save your business- the best thing is not to panic and make decisions you may regret later on.