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Entrepreneurs Weather the Storm During a Recession
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Posted On :
Oct-04-2010
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Article Word Count :
468
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Supposing you have to consider tougher options though? You may wish to consider reducing staff hours of work as some of your staff may be amenable to this idea and once you've discussed it with them and told them it is necessary for your new business to survive, they may be prepared to go along with this for a while until money comes back into the business.
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As a brave new business you valiantly set yourself up in the worst economic recession since the 1930s. You are a survivor, like many of today's millionaires (see entreper.com to hear more about surviving) and yet you now have to cut your costs or your raft will indeed sink.
Cutting staff is the quickest way to save costs. You hate doing it but it has to be done and there are a number of ways.
You want to reduce your headcount but you don't want to make anyone redundant. If you have the luxury of time then you can downsize the staff numbers by simply not replacing staff when they leave naturally or reach retirement age. You can also place a hold on all recruitment of course.
Supposing you have to consider tougher options though? You may wish to consider reducing staff hours of work as some of your staff may be amenable to this idea and once you've discussed it with them and told them it is necessary for your new business to survive, they may be prepared to go along with this for a while until money comes back into the business.
Harsh though it may seem, if you are a very new business then some of your staff may not have worked long enough for you to have accrued redundancy rights.
Check the contract of employment you have with them very carefully. Likewise, if they've only been with you a short while, their redundancy package may not be going to cost you very much.
If it does come to redundancy do bear in mind that this is a legal term and you must adhere to the law and carry out the procedure according to the law. If you don't you can find yourself before an employment tribunal and that could cost you more than your already struggling business could afford.
Draw up a list of the redundancies you need to make and then carry out a proper discussion with the workforce explaining this, you can gain valuable insight into negotiating skills on entreper.com and do remember that staff who have been in your employment for more than 2 years, are entitled to a redundancy payment and that this is the law.
If your staff realise that you truly do have to make the cuts to save the business and you have respectfully consulted them then the pain in the procedure can be minimised and redundant staff aren't going to go around running down your company - if you're an entrepreneur you know the importance of reputation.
By Theresa Roche
Entrepreneurship
hello@entreper.com
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Article Source :
http://www.articleseen.com/Article_ Entrepreneurs Weather the Storm During a Recession_35913.aspx
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Author Resource :
Theresa Roche
Entrepreneurship
hello@entreper.com
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Keywords :
Entrepreneurship, Entrepreneur, Business, Business Owner, Financial Freedom, Get Rich, Success, Money, Enterprise, Investment,
Category :
Business
:
Entrepreneurs
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