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7 Need-to-Know Tips When Downsizing a San Diego Business
Downsizing can be a challenge for any San Diego business owner, but if you follow these tips, hopefully the transition will be less stressful…
1. Prepare yourself mentally.
Downsizing a business isn’t going to be easy. It’s going to be an emotional time for you and your employees. Take advantage of resources like SCORE San Diego for no-cost professional advice. Talking with a business mentor can offer a third-party perspective and help you stay focused.
2. Develop a strategy and organized course of action.
Sit down with business partners and management to create a timetable of action steps and decide which areas of the business need to be restructured. What unnecessary costs can be eliminated? Will employees need to be let laid off? Do you need to sell excess inventory, furniture, or equipment?
3. Research California laws for transitions and terminations.
According to CDF, a firm that specializes in business reorganization:
“California law often requires employers to take additional precautions when taking such steps [to reorganize, restructure or downsize their workforce]. The manner in which employers plan, strategize and communicate major changes to their employees can significantly determine whether a transition creates liability exposure or if it smoothly supports business goals.”
4. Provide timely communication to employees.
If you need to lay off employees, be considerate of their situation and treat them with respect and dignity. Put yourself in their shoes and think about how you would want to be treated. Be transparent in your communication and give employees time to prepare emotionally for the transition.
This will set the precedent for employees you decide to keep. When they see your compassion and respect for the people you lay off, they’ll feel better about staying with the company.
5. Manage your business reputation.
When word gets out that your business is downsizing, there might be rumors and speculation within the San Diego business community and media. Send out a press release to quell any rumors and maintain a positive, professional demeanor in your communication with outsiders about your business.
6. Hire a service provider to help liquidate business assets.
If you do need to liquidate business inventory or equipment, enlist the services of a specialist to help take the burden off your shoulders. They can organize all the details of the sale from marketing to shipping and cleanup after the event.
At Cal Auctions we go to your place of business in San Diego and take professional photos of all the assets you want to sell. We then host an online auction and market the event to our audience of buyers across the nation and around the world, giving your items more exposure. Read more about what we do.
7. Stay focused on your vision.
Downsizing doesn’t mean you should forget about the vision you had when you first started the business. Going forward make sure that your management team is on the same page so that you don’t make the same mistakes that put you in this situation. Start fresh with a new mindset and let go of the past.
Do you have any tips to add when downsizing a business?