Contractor Cutbacks!

How to do cutbacks and still sleep at night!

Yes, this is a different world we live in right now for all contractors. No one likes to make cutbacks in help but at times it has to be done. So how do you figure it out and still get a good nights sleep.

First off you need to look at everyone as a profit generator. Let’s face it right now this is all it’s about right now. This is your company and the decision’s you make today and everyday will effect everyone in your company and you and only you need to make the right choices to survive this economy.

So let’s take a look on how to make the right choices and make sure you keep the right people in the right seat on the bus and they are doing the job they love and they are a profit  machine.

Let’s start in the office and most contractors have a girl that answers the phone. Pending on the size of your company you can have this all done by voice mail now. Yes, I no what your thinking why does the size of your company matter?

I think that if you have a  larger company [$10 million or more] you really need to have someone answer the phone because you move at such a faster pace and at times you need your information sooner then later.

Again take a look at each person and really figure if you can do without this person and how much will it save you over a month. Also make sure you look at all the cost of this employee like health insurance matching taxes and all other expenses related to this employee.

Make sure you go down your employee list just like you have your expense list and do all the cuts that make sense but do not cut to fast. The cuts you make cannot be anyone that makes the company money. Even if it’s a little money you should keep that person but figure out how to get them making you more and more money.

Don’t be afraid to shift responsibility around to other employees or add additional work load onto the employees. I believe in being up front with your employees and explaining your situation about the turn your business is experiencing at the moment and that this meeting is to discuss all options are on the table.

By doing this as a group you will get the ideal who wants to be a team player and the ones just looking out for there own ass. This will help you make the first round of cuts much easier then you will have the time to look at each one as they are now on alert and understand you mean business.

Always remember you are doing all of this to protect you and your business and your assets and to protect your family. You are responsible for your decisions that you make and there is no one to blame but you if things go south.

So take the time and make the right choices and this will help you sleep better tonight.

Happy Selling

Glen

Tagged as: Contractors, Cutbacks, Employees