Managing a business is plenty of work when things are going smoothly, but it’s much more challenging during the hard times. Here are a few tips from business executives who have been through some difficult periods:
Re-think your layoff strategy. John Mackey, founder of natural foods grocer Whole Foods, says that many business owners facing difficult times tend to have several small layoffs instead of one big one. Mackey said that’s the worse thing to do. If you have to lay off employees, let enough go so that you don’t have to do it again soon – or at all. Several small layoffs can cause productivity and morale to plummet and result in your best and brightest leaving you. Says Mackey: “Your employees will forgive you one round of layoffs,” he says. “But if you do it a second time, you will lose their trust as people start thinking, when am I going to lose my job?”
Get everyone on the same page. Make sure your employees know your P&L. Does each employee know how they personally can help increase revenue and reduce costs? Does everyone know how they can improve the business’s overall financial performance? If not, they should.
Get more tips for managing your business during difficult times in this article.