Choosing to downsize your business is a big decision. Because of that, it shouldn’t be made lightly. However, downsizing is sometimes the right thing to do. Oftentimes, though, it can be pretty hard to figure out whether it is the right time to do so. At Verified Movers, we often help people find the best movers for their business relocations. And because of that, we are well aware of how hard business changes can be for business owners. Especially if the change involves a seemingly backward step, which downsizing might seem like. But downsizing isn’t always a bad thing. Sometimes, it can literally save your business or help it improve in some way. Still, you have to be sure downsizing is the right thing to do before you do it. Here are some telltale signs that now is the right time to downsize your business.
Focus on your business and you’ll figure out whether it’s the right time for downsizing
Many business owners won’t even hear of downsizing. They’d much rather move with top movers in Los Angeles to a cheaper area, or even make pay cuts than downsize. That is more often than not a completely faulty mindset. If it’s time to downsize, it’s time to downsize, and there’s nothing you can do about that right now. Don’t look at it as a failure, but as something that your business requires right now to thrive in the future. Luckily, to find out whether it’s time to downsize, you don’t have to do anything crazy. All you need to do is evaluate your business and you’ll have your answer.
It’s very important to analyze your business before making any significant changes!
If your business is struggling financially, that’s a clear sign that it’s the right time to downsize your business
One of the biggest clues that your business needs downsizing is financial difficulties. If you’re struggling hard to cover the costs, you’re probably biting off more than you can chew. And maybe that wasn’t the case in the past, but now it is. For example, if you’re planning to move and you can’t even afford to relocate your business to another state without tapping into your savings, your business might be in a bit of a pickle and in the need of downsizing. Luckily, moving is a great time to downsize. You’re starting afresh anyway, so why not downsize as well while you’re at it.
The revenue is just not there anymore
Maybe you’re managing bills and paychecks quite well, but your business simply isn’t bringing in as much money as it once did. Of course, having a little less money in off-seasons is nothing to worry about. However, if your business keeps bringing in less and less money, it might be time to consider downsizing. And even if you’re great at creating business budgets and making things work with little money, it isn’t always the best idea to keep things as they are even if you’re making ends meet. Your business might be doing a lot better if you were to downsize.
If your income is dwindling, you might want to consider downsizing!
The demand is not as high as it used to be
One of the most obvious signs that it’s time to trim down your business is the lack of business. Unfortunately for some, the market often changes. That means that some businesses can’t thrive all the time. The customer wants what the customer wants. And if the customer doesn’t want your product, all you can do is either evolve or downsize to still be able to cater to the remaining clients. This can be rather disheartening, but you have to think of your business and not yourself. If your business would benefit from downsizing while still allowing you to keep doing what you’re doing, you should definitely consider it. Downsizing is not necessarily a permanent thing either. Your business might grow again in the future.
Some of your employees having nothing to do might be a hint that you should downsize
If some of your employees are sitting around all day with not much to do, you might not need them after all. If there isn’t enough business or your business is struggling financially, it might be a good idea to cut down on the number of employees. Sometimes you can’t afford to pay employees you need. But sometimes, you’re paying for employees you don’t need. And regardless of whether you can afford to pay them or not, let’s agree that it’s not the smartest idea to pay for employees to sit around doing nothing of importance. So if you notice that too many of your employees are idle for significant periods of time each day, it might actually be time to downsize.
Having too much space and not enough people and products to fill it with
Another form of business downsizing is space downsizing. It might not be as serious of a venture as downsizing your complete business operations, but it’s significant nonetheless. If you notice that you have too much room that’s unused, it might be a good idea to downsize. A larger space is likely going to be a lot more expensive than a smaller space would be. And even if money isn’t an issue, you might be able to find a smaller space in a better location for the same amount of money, for example. Or you could even save more money by downsizing.
Too much empty space is a good indicator that it’s the right time to downsize your business!
The best time to downsize your business is when your business needs it
Whether you’re about to move your business with one of the best moving companies in California, or you’re staying where you are, it’s important to notice when the right time to downsize your business is. Downsizing when moving might be easier. But even if you’re staying exactly where you are right now, downsizing could also be the right step for your business, as well as you. The only right way to determine if your business is ready for downsizing is to listen to it and analyze it without overthinking. Your business will let you know when it’s ready for downsizing if you listen closely. Don’t let your own ideas and biases stand in the way of your business’s wellbeing.