Downsizing your Business: Tips for Success

There has been a recent spate of businesses that are downsizing thanks to the pandemic. Here are tips for doing it successfully.

Downsizing your business is something no leader wants to have to do. It’s taken you years to become successful and longer than that to be taken seriously. You’ve worked days, nights, weekends, and sometimes all night through, just to see it take off. Downsizing can feel like a backstep. 

However: these are challenging times, and we do what we must to survive. Your business will be back to its full potential in no time. While waiting for it to build up again, you tighten your belt, make the changes, and work your hardest. If it were easy, everyone would do it. But your business needs you, and it’s time to step up.

So here are some tips on successfully downsizing, so you don’t need to shut down completely.

Top Tips for Downsizing your Business

Before you close your doors permanently, try downsizing your operation and see if it helps you stay afloat.

1 – Start with your Space

Downsizing your office space should be the first step towards successfully decreasing your entire business or organization. For example, do you have an all-in-one office setup where orders are placed and shipped from the exact location? If not, then getting rid of that extra space helps you claw back rent.

Renting shared coworking spaces denver has become a popular solution to this problem. This solution allows you to downsize your area and save on bills, too.

2 – Recognise your Staff

Make time for the staff members that you are both letting go and keeping on. Those that need to be made redundant will have a massive blow to their confidence, as well as being plunged into financial uncertainty. An ethically run business would make time for staff members, talk them through the process, and offer them support to find new work.

Similarly, those you are keeping on should be rewarded and made to feel safe in their roles. This is an uncertain period for everyone. Don’t let them think resentful, or they will leave you behind. 

3 – Clamp Down on Unauthorised Spending

This seems harsh, but it’s pretty straightforward. If you have a business with company cars, office supplies, or uses software, it is time to clamp down on how it is used. Controlling the distribution of office equipment and installing trackers in company vehicles are good ways to stop yourself from being taken advantage of. They have an initial start-up cost, but if you are a significant operation with a whole fleet, it will pay for itself.

4 – Outsource

While it may have been wholesome to complete every aspect of a client’s order may have been healthy, it isn’t always a good idea. Your time is valuable, and if tasks are tricky, they can eat away at your day. Outsource them for cheaper and save on time for other things. For example, you may find the less you spend on mailing, the more time you have to chase leads.

Final Thoughts on Downsizing

Your business needs you to drive it through this tough time. It won’t be easy, but you will have some serious staying power for years to come if you make it.