Losing Money – The Wrong Staff Will Cost a Fortune
In more than two decades of work with clients and on acquisitions, eliminating staff is always the most sensitive topic. Staff elimination or reduction is a normal part of doing business and common in acquisitions. However, when a seller does not want to address staff issues it could cost a fortune (at least a small fortunate). No one likes to fire people, but if they are hurting your business and lowering value, an owner needs to make the right move.
Some businesses outgrow staff or owners fail to properly manage employees. The result can be that some employees will chronically underperform. If not replaced, their salary is only part of the impact on the business. They may actually be hurting the performance of others as well.
I have worked on acquisitions where the seller had staff with very limited responsibilities. Because the business had grown from a “mom & pop” environment, everyone was treated like family. However, like many extended families there is a lazy cousin who is happy to fly under the radar. Being friendly and at work are not the only criteria for getting paid. Employees that add little value hurt profits now and will drag down value in a sale.
Lost Profits and Value
Both the underperformers and unnecessary employees hurt profits now and deal value in a sale. An owner needs to be proactive in dealing with these staff issues before it is too late. If you want to avoid the lost profits and value from the “wrong staff”, you should read my full blog on this topic at What the Wrong Staff May Cost Your Business
P.S. If you would like to learn more about how I can help your business, schedule a call here. Schedule Call
P.S.S. Please check out my video on YouTube to learn more on the topic. What the Wrong Staff May Cost Your Business