5 Steps to downsizing your team

1.Create a monthly budget forecast for the year that includes projected volumes and revenue in unit sales, parts and accessories, rentals, marina fees and any other income, along with all expenses.

2. Examine the functions — not the people currently doing them — that must be done to manage your projected level of business.

3. Evaluate individual employees and their capabilities. Rather than making a list of who to fire, flip the equation and look at who you would hire given what you know now. If there are no under- or non-performers, the last hired are the first fired.

4.Look for creative ways to keep good employees. Reallocating job functions and positions is one strategy. Other employees might find it appealing to take time off or further their education if they know that they have a job to come back to.

5.For those you must lay off, consider severance pay, if you can afford it. You might also help the employee find another job yourself or through working with an outplacement firm.

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