Money

Chapter 4 - Downsize Your Jewellery Shop or Market Stall

How big is your shop? How big is your Market Stall? How big is your van?

Does it need to be that big?

About six years ago, a mid-sized company I worked for in London was experiencing a serious drop in revenue due to some poor management decisions. Their response was to bring in a new General Manager who promptly laid off 40% of the office staff, then cut the size of the office in half. The drop in the company's wage bill coupled with the reduction in the rent was enough to tide the company over until they got back on their feet.

If it is possible to renegotiate the terms of your lease, to reduce the size of your shop, then you should consider doing so. If you are in a shopping centre, can you move to a smaller unit in the same centre? If you sell at a market stall, can you reduce the size of your stall so you occupy one unit instead of two? Compressing the size of your sales floor has the added bonus of making it easier to reduce staff numbers, and thereby gain another saving.

Do you travel around a lot, carrying your stall and stock as you go? You may have purchased a new or nearly van back when things were good. If so, then consider selling the van and scaling down by buying something cheaper - either a smaller van, or a less expensive model.

Remember, these are short term solutions to help tide you over until the economy picks back up. And it will. The one certainty of the current economic mess we're all in, is that it is temporary - they always are. And when things pick back up, you will be in a perfect position to grow your business. If, of course, you haven't had to close your doors earlier due to cash flow problems and poor sales.

So - downsize if possible. And if it's not possible, look again - because it usually is.