Our small businesses are important to us and one of the greatest signs of success is expansion and quick expansion if possible. Is it possible that many of us are expanding too quickly, taking on too many responsibilities and financial obligations?
The ability to focus on what are the most important aspects of our business lets us concentrate on the essentials and still have time to ourselves while watching our business grow in a more managed way. Simplification is becoming more popular as we finally realize that bigger is not better, more is not the way to go.
Be realistic. Take into consideration the economic outlook, particularly in your niche. Learn to plan for further downturns while still being optimistic. Consider where your business is at presently, who purchases from you and also, at what point you would like your business to be part-time because as you get older a full time business will no longer be something that should be a priority.
Make plans. Looking at when you would like to start downsizing, if not immediately, pinpoint which areas of your business are the most costly. These are the areas you need to start reducing if possible. If this isn’t possible, why not? Are there some functions of your business that are spread out among various employees, if you have them? Could these be consolidated into one job? Would it be more financially viable to outsource these tasks?
Change your policies. If, until now, you have made it a habit to deal with certain suppliers, hold onto certain employees or any other long term habits, change them. Once you’ve identified where your business needs to go, implementing change is going to be difficult, especially if it affects others, but necessary to your financial future.
Downsizing any business takes preparation. Always take into account any promises made for future projects, how your reduction of services and products will affect your most loyal customers and keep in mind that you can always specialize in your most popular items. Having more doesn’t necessarily equate into dollars, it’s how satisfied you are with the life you have created.
© Chris Draper, DemGen Inc. 2015
image courtesy of linkedin
