Your Local SBA

Employees and Location
Advice on dealing with some of your business's most valuable assets

Employees

  • "Don't skimp on service and quality by being understaffed," says Harry DeWolf, District Director of the SBA's Portland, OR, District Office. "Use part-time [workers] and subcontractors to fill gaps." And if you do use contract labor, you need to know the IRS rules, says the Grand Strand chapter of SCORE.
  • "Keep employees informed of the current business situation," says the SCORE Grand Strand chapter. "Ask employees for suggestions for improvement."
    Similarly, "Involve employees in methods and implementation of cost-reducing ideas," says Mr. DeWolf. Adds the national SCORE organization, "Your team knows the economy is tough and wants to understand what the company is facing and how, together, you can make it through."
  • "Avoid reducing training budgets," says Mr. DeWolf. "Create in-house training opportunities. Cross-train staff in different roles."
  • "Avoid layoffs," says Reka Mosteller of the USC-Aiken Small Business Development Center. "Offer reduced hours of work instead ... Those [employees and clients] who survive the downturn with you will probably stay with you, research shows."
  • "Eliminate employees who are not performing" suggests SCORE's Grand Strand chapter.

  • "If you have at least one business partner/employee, take a moment to think about your work environment," says Scott Bellows of the USC Small Business Development Center in Columbia. "During good times people tend to work well together, but when the going gets rough these relationships tend to break down. If you don’t work as a team, your business is going to suffer. Take the time to discuss the current situation and to discuss your current business strategy (you might just find that others can improve it!)."

  • "Make sure that all managers are using their resources effectively," says Geoff Magrath of the South Central SCORE chapter in Aiken.
  • Reduce salaries if possible, says SCORE's Grand Strand chapter. Also, "Reduce vacation time until things improve." Most importantly, however, "Don't use money from employee wages to operate your company."


Location

  • Especially if you're in need of additional cash flow right now, "Renegotiate rent -- Offer the landlord a lease extension or offer to make a balloon payment in exchange for lower payments over the next six to 12 months," says Geoff Magrath of South Central SCORE.
  • "Look for opportunities to reduce rented space," says Harry DeWolf. "Sublease if possible."
  • Ensure that your "structure, location and appearance are received positively by the market," says the SCORE Grand Strand chapter.
  • "Consider changing locations," suggests the Clemson Small Business Development Center. "Is there a better, less expensive location? Do you even need a storefront, or could you operate from your home?"