I need your advice. At the moment we are in the middle of the winter season when most of our clients are away. Though we have events in the spring, summer and fall, we have no work at all right now. Meanwhile, I am having a very difficult time paying a weekly salary to all of my employees who are like family to me. I do not want to fire anyone. Do you have any suggestions?
Dear Winter Blues:
Believe it or not, I understand what you mean and am in your situation as are a couple of my friends who are vendors. We have a similar situation here in New York. Most of our high end clients have gone to warmer places like Palm Beach and the caribbean and while there are a few events, there are not a lot. Most of the weddings and benefits take place in the other seasons.
One of my assistants suggested that we cut our work week down from five days to four until business picks up in the spring. At first, I resisted the idea but the more I thought about it, the more it made sense to me. Our business is one of ups and downs. I am sure if you are transparent with your staff and explain your financial situation, they might prefer a temporary pay cut of 20% rather than losing their jobs.
Most companies will experience cash flow issues at one time or another and we are no exception. I believe the best way to deal with this is to cut back in a way that keeps your business family together.
Dear readers: How do you feel about my idea? How do you deal with your own cash flow issues?