Small Business Cost Cutting:- Fire Non-Essential Staff

I think it is no great secret anymore that the world economy is going to take a “little” longer to recover, due in part to the incompetence of some of our beloved and distrusted politicians.

What are you doing to tighten your “business” belt? As I have discussed before, changing as much of your fixed cost (cost you have every month, no matter how well your business is doing) to variable cost (cost you only have when you are making money too) is essential – one way of doing that is to reduce you labour and staff costs.

Ask yourself is every member of your team fully utilized, what is your ROI on each of your staff and don’t forget to look at holiday costs, sick costs, infrastructure costs for the employee, health insurance and employer contributions.

Finding business partners, including freelancers and home businesses, to perform those jobs and task for you if and when you need them, should be part of your business model.

Having to fire staff is never a pleasant experience for all concerned, but having your business go under because you have not tightly controlled your overheads will be much more unpleasant, trust me!

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