Sometimes, in order to downsize, you need to limit the scope of your organization and streamline it to do more with less. It’s never an easy task of course – left to their own devices, organizations of any sort would prefer to expand and if left alone, baggage can grow like a weed. But downsizing can also signify a new beginning and help you move forward.
While you may need to let staff go (the least preferable option), you may be able to avoid that fate by liquidating unused or extra assets that can be mission-critical for the time being. What does that mean in practice? Let’s consider some vital approaches:
Consider Liquidating Any Owned Vehicles
Company vehicles can be expensive to maintain and insure, especially if they aren’t heavily relied upon. Selling them could free up cash and many will retain a solid amount of value if you took care of them. It might just take a little negotiate to free someone of their company car, however. For instance, if you own several delivery vans but most of your business has shifted to digital services, it might make sense to let them go. Just make sure to sell them responsibly, even at scale. Processes like signing over your title to the buyer ensure everything is legal and final, helping you avoid future issues or claims.
Pivot To Cloud IT & Rented Solutions
There’s simply not need to pay for every computer outright with large servers and an IT team if you’re a particular type of company. Outsourced IT can be helpful. Many will furnish you with laptops, tablets and other gear you need loaded with the software you use, even if you have to upgrade to their more expensive tier and pay insurance as part of that. They can also assist you with renting equipment, like printers or specialized tools, rather than owning them outright, which might also help balance your budget.
Integrate Further Remote Work & Negotiate A Premises Ownership Exit
Maybe now is the time to say goodbye to your premises if it’s just being used for office space. If you own the property, selling or renting it out could provide quite a helpful injection of funds. Keep in mind that for rented spaces, negotiating an early lease termination might be worth exploring. Transitioning to remote work doesn’t have to mean losing cohesion in your team if you plan it right, but t does mean rethinking how your team stays connected. You can always rent office space for larger meetings and collaborations.
Stay Learn By Selling Raw Inventory
Excess stock or raw materials that aren’t part of your current priorities could be turned into immediate cash flow, and many companies do this even when they’re not downsizing – such as selling off all the old office furniture they have after an upgrade. These items take up storage space and tie up your spending, so letting them go may even save a job for this year. It can’t hurt to try.
With this advice, we hope you can more easily downsize a business and liquidate any assets as needed.
