In the business world, there are a few decisions that are as hard as downsizing. Relocation, takeovers, mergers, staff replacements can all be rather challenging. However, people often consider downsizing to be a step before complete shut-down. This is not the case. Downsizing can be the right decision. Furthermore, it can also be the only decision you can make. Ever since 2019, many small and medium-sized businesses have faced decisions like this. It may be hard to remember the time when you were just starting out and wondered how to start a moving company. The moving industry is constantly changing and introducing new trends. You need to keep going forward. That’s why it’s important to start thinking about downsizing your moving business. Downsizing is a change, and like such, it can lead to new opportunities.

Staff meeting to help determine how to downsize.
Downsizing your moving business is never easy because there is a lot riding on the choices you are about to make.

Time is of the essence when it comes to downsizing your moving business

The reason why downsizing your business won’t be easy is because a lot is hanging on your decisions. The stakes are high and you have a say that influences other people’s jobs and lives. Therefore, you need to be vigilant and considerate, both at the same time. Businesses that employ a lot of people, like Movers Development, have a lot of employees that depend on them. If yours is one of such business, know that you can’t please everyone.

People usually consider downsizing when there is no other choice. Periods of national and global crises are a good example of businesses facing downsizing when there is nothing else left to do. If possible, you should try to stay at top of your game. Think ahead and look for indications that your business may face downsizing. Don’t wait until the last minute to take the necessary actions. Be one step ahead.

Fix the cause of the problem, not the consequences

The best advice one could give to a business leader who faces downsizing of their business is to fix the cause of the problem. You need to understand why your business suffers. It could be that your expenses overcome your profits. There could simply be less of a demand for the type of services you offer right now. The most common reasons why a business fails also include mismanagement and marketing problems. Depending on the reason, you have to take different actions.

a fired employee
Having fewer employees could fix your current problem. However, you need to look for the cause of the issue and nip it in the bud.

The easiest way to downsize your business is to let people off. Sometimes this could indeed lead to favorable outcomes. Having fewer people on your playlist will solve the current financial mess. However, this is not always the smartest solution. Having fewer people can also mean lower efficiency. You need to identify the exact problem your business has. Only then can you plan how to downsize it properly.

Relocation, as you’re well-aware, is never easy

As a moving business, you will face some problems that are out of your hands. If you feel that you’re business doesn’t bring as much income as before, it’s time to make some changes. It may seem paradoxical, but you could think about the relocation yourself. You should underestimate the importance of location strategy. This is a simple solution if you don’t have as many clients as you would like. You need to be aware of your surroundings. If your business isn’t blooming, you need to figure out why this is.

Use location services like proximity beacons and geofencing. Learn about popular demand in your area. If your particular services don’t match the needs of your client, you have an option to relocate. Just remember to explore your future area as well. This could also lead to a lot of changes, some good and some bad. Think carefully beforehand.

Letting people go is sometimes an unavoidable part of downsizing your moving business

In the end, there may not be a way around it. Letting people go may be the right decision that could save your business. However, it doesn’t have to be that bad. Your employees surely understand the situation themselves. On the other hand, that is small comfort if they’re going to be out of work. You, as a team leader, need to be considerate and do the deed swiftly, decisively, and painlessly. A few things you should consider include:

  • create a layoff criteria 
  • be honest about the situation
  • don’t fall into a trap of sentimentality
  • give the employees a fair warning well in advance
  • remember to thank them for their help so far
  • give them a good reference

Make sure you have a clear picture of what your business needs

When it comes to it, you need to make a selection based on the nature of your business. Furthermore, you need to be familiar with what each of your employees brings to the table. For example, if you’re dependent on digital marketing, your programmers must be on top of their game. The specialists who deal with moving company website design are people you should pay special attention to. Set the criteria based on their performance and efficiency. 

A two-man moving crew with a van.
Contrary to common belief, there is a way to go about downsizing your business with grace and dignity.

Don’t waste your time trying to avoid the inevitable

Now that you know the basics when it comes to downsizing your business, don’t delay. You face hard decisions and you won’t be doing anyone any favors if you take your time trying to avoid the unavoidable. Remember to fix the cause of the issue. One other thing that could help you is to learn from the experience of other businesses.

Sadly, you’re not the only one that faces the downsizing problem. This is bad news for moving companies, but generally speaking, it’s always better to learn from others’ mistakes. Delaying is one thing, but you shouldn’t be too hasty either. If you know that your business faces downsizing, give a fair warning to your employees. However, don’t take any action until you’re sure you know what’s best.

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