The Best Way To Downsize Your Business |
Posted: May 3, 2012 |
The Best Way To Downsize Your BusinessDownsizing is not something business owners like to think about but it can be a necessary part of running a business, especially if you want to cut costs, change direction or survive an economic downturn. It’s a strain on any business, but there are several options available to you. Reduce your product line: If you small business is struggling you need determine if your problem has been caused by spreading yourself too him. For example, do you have 20 websites that are all struggling to make money, or do you have a catalogue of 200 products with limited seats? If you answered yes to either of these questions then consider reducing your product line so you can spend more money and effort promoting the top sellers. Focus on what you do best: Focusing your business on what it does best is another way to downsize your business without downsizing your profit. For this option you will focus you business on what you are best at, such as auditing, cleaning offices or producing vinyl signs. By specializing in one or two services or products you can spend more of your assets promoting the services that you do the best and that inevitably will make you the most money. Trim your budget: If downsizing is about dealing with fewer things and making things smaller in various ways, you should also look at your budget. Regardless of what you are spending on a monthly basis right now, the chances are quiet good that you can still make additional reductions to your expenses. Downsize your workforce: It is possible to reduce your headcount without resorting to the upset and expense of redundancies. Your workforce will naturally reduce through employees leaving or retiring. Alternatively, some of your employees may be willing to reduce their working hours or change their position, and others may not have acquired full redundancy right yet.
Take a break: When downsizing your organization, contemplate taking a trip. There are numerous business owners, that do not bear in mind once the before they’d obtained a trip. The only thing that you should do is to shut your organization and visit for one or two weeks, since like that you can decrease the pressure that you are exposed to and you simply will get a many more strength to operate your organization. Outsourcing: Out sourcing is another way to downsize your company without cutting into your profits. For this option you will hire a company to handle your after hour’s calls, to take orders, to answer technical questions and perhaps even to complete secretarial tasks for you. Overflow work can be completed for less money by outsourcing companies, which will save you lots of money. Lastly, have consideration for external shareholders such as the community. If the reduction plan is large, it can have an enormous impact on a small community. You should make every effort to minimize the negative impact on the community. At the very least, be equitable to external shareholders throughout the process.
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