May 19, 2020

5 Ways to Properly Downsize a Small Business

Business
Business Review Australia
Strategy
2013
Bizclik Editor
3 min
5 Ways to Properly Downsize a Small Business

Contributed by Tina Samuels

 

While no small businesses like to downsize, there are many times when it is a necessary evil.

Doing it the right way will help keep your remaining team members focused and motivated, while creating the planned result of the downsize.

Here are five ways to properly downsize your small business in 2013:

1.      Do It Legally

Make sure you know, before laying anyone off, if you are required to give them notice about the layoff and if you are responsible for compensating them for the layoff. Downsizing legally means that you conform to every aspect of the law.

2.      Check for Volunteers

When faced with a downsizing company, you may want to see if any of your employees want to do a voluntary termination. In this, it offers a buy-out for those employees that will leave on their own. This keeps you from having to pick employees, gives a better overall mood to the rest of your employees, and keeps the fear levels low.

3.      Do It Evenly

When it comes time when you have to pick people for downsizing, you may want to do it as an across-the-board cut. This keeps it looking fairer and balanced than choosing people only from one section of the company.

4.      Select by a Funnel Method

Another good strategy for downsizing employees is by using a funnel approach. To do this, choose people by skill set first, job performance second, number of disciplinary actions third, and seniority fourth. This also puts it on a more even, performance-based structure, and keeps the look of selecting favorites at bay.

5.      Planning and Preparation

Take account of all the projects you have going at the time you want to downsize the company. You don't want to choose people for a layoff who are in the middle of a critical project, as this may put the project in peril.

Preparing for the layoff process is as simple as making sure that the people you have chosen were chosen fairly and that their leaving doesn't put a crimp in any upcoming projects. If you need to write out a script on what you are going to tell an employee, do.

Another idea is an across-the-board memo on the "why" of the layoff, how the "who" of the downsize effort were chosen, and "when" it will take place.

Downsizing is never a fun time for any small business owner. It is never a purely good thing, for the company and surely not for the employees.

By incorporating some of these tips, you can achieve a more fair and balanced outcome and keep the remaining employees’ morale up.

 

About the Author

Tina Samuels writes on a variety of small business topics, consumer, and on various gutter styles when considering home maintenance.

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Jun 8, 2021

Timeline: India takes unicorn leap with six in five days

India
Unicorns
Startups
tech
Kate Birch
2 min
We chart an historic week in India’s startup tech industry, where from April 5-9 the country achieved six unicorns

We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.

April 5: Meesho

India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.

April 6: CRED

Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.

April 7: API Holdings / Groww

The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.

April 8: ShareChat

New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.

April 9: Gupshup

AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels. 

 

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