Business downsizing is an unpleasant fact of life.
As a business owner, you do not see how you can survive without business downsizing. The problem is that business downsizing always involve terminating the service of your employees.
Laying off workers is a painful but not the real meaning of business downsizing.
What are the ways you can handle business downsizing?
1. Selling off part of your business
If you have many stores in different areas, you can consider selling off some stores as a part of business downsizing.
You can consider selling the stores to the existing employees. Since they are working in a particular area,they know the customers better. They know the products and services that the customers want.
You can consider selling the stores partially. That means you retain a 20% equity. That will allow you to gain from the profits of the stores.
2. Outsourcing non-core functions
You can outsource some functions as part of business downsizing exercise.
Since the persons who know the functions are the current employees, you can ask them to set up a business. You can hire them as consultant rather than employees.
You can allow them to work from their homes so that you do not need such a big office space.
3. Reduce customer base
Reduce customer base does not seem such a good idea for business downsizing.
However, you will find that reducing customer base allows you to focus on better customer service to the good customers.
There are some customers who give more trouble than profits. It is not worth to spend time listening to their complaints.
It is better to focus on those few customers that bring more sales and profits for your business.
4. Reduce paperwork
There is no need to handle
You have to remember that the time spent in filing and other paperwork does not generate profits.
While paperwork is essential to the operation of the business, you can reduce it to the minimum.
This is the way to reduce stress for your employees. This is also a way of business downsizing without affecting the profitability of the business.
5. Reduce products range
There are certain products that are not popular. You can stop selling those products that are not in demand.
Reducing products range is a form of business downsizing. You can continue to source for new products and services, while discontinuing the not-so-popular ones.
Business downsizing does not necessarily mean terminating the services of current employees.
You will find that treating your employees as a business partner works better.
Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. Personal Finance is about money, from making money to investing money. Retirement in Asia contains resources on retirement planning.