Advice for downsizing your business
Aside from the obvious financial points, Market House understands that downsizing a business is as big a step as expanding it! It has multiple implications for employees, customers and of course those who run the business. Choosing the right time to downsize can be much more difficult than it seems with consequences that are both ethically and financially charged, it’s a lot to think about. So, how do you approach this task?
Be 100% sure
Downsizing is a big step, so try not to take the decision lightly or base it on a single bad year. This will only serve to save money in the short term and not reveal the deeper issues that need to be addressed within your business. Downsizing needs to be looked at as part of a whole business plan and not just as an instant solution to cut costs; you need to be aware of multiple consequences and how they will likely affect your business and employees in the coming years. So, make sure that you have looked into all the avenues before considering downsizing.
Consider your timings
This is something that needs to be planned for. It isn’t a knee-jerk reaction. Not only will making a downsizing plan help keep trust with your employees, it will ensure you and your staff remain focused on and aware of the situation at all times during the process. You should also ensure that your plan has a target date to complete the whole downsizing process as this will encapsulate the process into a single goal and help keep your focus.
Find the right office space
If you are downsizing, your current office may be too big or costly for you to stay in. So, make sure you find the right office space for the amount of people you employ. Market House can directly help you with this one, not only do we support small businesses with our connections to Buckingham Business First, but our flexible plans and inclusive rates mean that businesses are able to be financially confident. If you are looking for a serviced office space fit for a company of less than 25 employees, Market House has excellent facilities that you can be proud to move in to and is a supportive community of businesses who want to see each other succeed.
Be proud of your business
Downsizing is often considered as a negative for a business, it’s a big step and not one that should be taken lightly. However, when considering what is best for your business, you should take an element of pride. Be proud of what your business has achieved and that you are addressing its short falls head on. If anything, it shows your strength of character and that you have a clear understanding of where your business stands.
Be totally transparent with your employees
If you are open and honest with your staff members about your business difficulties, they are likely to be much more understanding and appreciative of your circumstance. Not only this, but if they are aware of the company’s situation, they are likely to be more prepared to deal with the consequences and soften the blow of possibly being let go or made redundant.
For more information about how Market House can help you through this process, contact us at MarketHouse@pointofdifference.co.uk or give us a call on 01296 340462, we’re always happy to have a chat!