Do I need to layoff staff? when? (PART 1 – Making Decisions Under Duress Using Throughput Accounting)

Unfortunately, we think many businesses will need to think through how they reduce their operating expenses (including staff layoffs) to remain solvent and viable for the long term during these COVID19 times.

Now, if you know us, you know that we gravitate towards creating more Throughput-margin, not cutting Operating Expense. We are Theory of Constraints Throughput Accounting certified experts after all. However, the suddenness of reduced demand, deferred orders coupled with slowing cash flow may mean that reductions in Operating Expense, in particular, reductions in payroll expense – as painful as they are, may be in fact be necessary.

That’s why we’ve made a video guide to take you through alternatives that you might consider in evaluating your next step(s).

The video is called “Making Decisions Under Duress: Effective Financial Realignment”. Check out the video:

At the end, we offer the opportunity to request a free, no-obligation financial checkup, should you want someone to talk to about your unique situation.

We hope you’re staying safe and doing well.  But hope is not a strategy.

Let’s determine what you can DO now! –> FREE financial and cash management checkup

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