Payroll blew up, I cut 8 people down to 5, tension is super high this month but our finances are better

i did the same thing bro felt terrible laying off employees. but i had to otherwise both of us (the remaining team + me) were gonna be unable to work. the remaining team is very tense right now but since i'm supporting them psychologically they'll be normal soon

Critical rule in company management: if payroll is too high for the business to survive, it has to be cut. Your decision was right. But psychologically, post-damage team rehabilitation is needed.

For your remaining team: 1- Share a clear vision ('this difficulty is temporary'), 2- Set performance targets (need a purpose to work), 3- Promise compensation and promotion (extra bonus if things go well after 6 months), 4- Organize morale-boosting events, 5- Be open about those who left (don't hide it)

My question is: if revenue stays at 80k, can we 'normalize' with those five people? I mean, shorten the route on slow days, reduce workload. Or was there another solution besides layoffs?

Bro this was a crisis period, you made a very solid decision. While most businesses couldn't save their profits, your brave step will ultimately save your business... You'll succeed!

this was the worst period for team morale. if it continues, creativity decreases and the quality of work drops too... but it's just a matter of time things will return to normal... tension is natural right now.

I have a question. Don't hesitate to ask; those who don't ask always pay more.

Trying to do this alone is the most expensive way.

I felt relieved reading this answer, so its not just me... like looking profitable on paper but having no cash in the bank is very common.

The longer you delay cutting the team, the more people it affects. That's all sorry if I went on too long.

The answer above hits the nail on the head. Don't hesitate to ask; those who don't ask always pay more.

That's all, sorry if I went on too long.

Following. Don't hesitate to ask; those who don't ask always pay more.

I've been dealing with this for a long time. The reason for failure isn't one big mistake, but the accumulation of small decisions.

The longer you delay cutting the team, the more people it affects. If I were you I'd go this route.

We experienced almost the exact same thing last year. Mistaking revenue for cash is the most expensive illusion; trust the bank account.

Good luck with that.

Let me clarify the technical side. The harder it is to reverse a decision, the slower you should make it.

If you post the result here, it will help others too.

I have a question. Extending terms makes customers happy but turns you into a financing institution.

This is my opinion, I'm not claiming it's absolute truth.

The discussion got scattered, let me summarize. Mistaking revenue for cash is the most expensive illusion; trust the bank account.

Any unwritten clause becomes a point of disagreement later, as both sides remember it differently.

i agree with this. taking notes for two weeks yields better results than a six-month estimate.

if the gap between accounts receivable and accounts payable turnover days is widening revenue won't save you... i mean good luck with that.

I've been down this road, let me tell you. When making a decision first look at what data you have on hand.

If you have questions write them; I'll answer as best I can.

Let me share my experience. Don't hesitate to ask; those who don't ask always pay more.

Just leaving this note, it might be useful.