A big mistake that is made by a number of people during economic downturns is to layoff employees starting at the bottom of the chain. While it may surprise you to learn this, only the very large corporations can actually get away with this and even then they only do it to protect senior employees as opposed to doing it because it benefits their bottom line.
The simple fact of the matter as far as small and medium businesses are concerned is that keeping lower rung employees is a lot cheaper than keeping management and since management tends to be hired in larger quantities than necessary anyway, laying off some management employees can serve to save you a large amount of money while at the same time ensuring that your management employees end up working at peak productivity. It is a nice way to kill two birds with one stone and it could save you tens of thousands of dollars each year.
Money like that could easily be the difference between the sky and the grave for a small business and therefore it is something you should definitely consider if the company falls on hard times. Businesses do have a moral imperative to its employees in times of economic downturn however, so make sure that all other options have been exhausted before you act on this option.
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Bloggy Biz is a blog that prides itself on having answers to a lot of common questions that people might pose. These are not the same answers that you would hear from business executives however. Instead, they are common sense answers that are easy to implement and even easier to monitor and maintain. These are exactly the types of answers that people are looking for in these hard times and the next month will be dedicated towards helping you manage your business in a recession the likes of which most people of this generation have never seen.
Inflation
Before those tips start however, something that you need to realize is that times are likely going to be tough for awhile. The world has languished on fossil fuel and innovation in the energy industry is only now starting to jump start after a few decades of being at an all time low. Therefore, the first goal of your business should be survival until things pick up again. All other concerns are secondary. If you are aware of the tough times that are ahead, know that they are going to do bad things to your company and personally commit to doing whatever it takes to make sure your business gets through alive, then you are already in a better position than most other small business executives.
With that in mind, the next posts will cover some suggestions for managing your business and saving some money.
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One of the biggest decisions that a person will have in the modern world when it comes to their business is whether they want to go online or offline. This actually applies just as much to established small business as it does to business that is just getting started because whereas a starting business is looking to establish a market presence, established businesses are looking to expand that market presence and it can be done through both online and offline channels.
There is really no good answer to this question aside from evaluating the relative strengths of both fields and deciding which one is better for your start up or expansion, so let’s give that a try right now.
When you are working in the online field, you can reach a lot more people for a lot less money, but at the same time many have argued that an online capture is less effective than an offline capture because of the tangible and sometimes personal nature of the latter. However, a failure online is easier to swallow because of the simple fact that a failure online is a lot cheaper.
So the online field is cheaper and wider, but the offline field likely will get you higher quality leads and captures. It’s a tough choice and one that is ultimately decided by your resource level for start up or expansion as well as the amount of effort that you are willing to put in.
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