As a business owner, you may have to make difficult decisions in the best interests of the company. One of these decisions may be to downsize the business.

Downsizing isn’t straightforward and there are several things that you will need to think about. Outlined below are some of the key steps involved in downsizing.

Reviewing your commercial lease

Downsizing typically involves laying off some workers. This in turn can result in the need for a smaller company headquarters or workspace. Many businesses lease their headquarters or workspaces to avoid the bulk payment and commitment of buying a property outright.

Having said that, a commercial lease is still a big responsibility and it is not necessarily easy to change or get out of. You may need to hold negotiations with your landlord to discuss a reduced rate. They may be able to adjust the lease and provide you with a smaller space to work from.

Failing that, you might have to hold discussions with the landlord to find out if you can exit the lease early without too much of a cost.

Review your objectives

When downsizing, you might also need to review your overall objectives for the business. You probably won’t be able to trade as much in terms of volume as you did before. This doesn’t mean that the business has failed. In fact, it could make the business more efficient and you may also end up with a more balanced work/home lifestyle.

When downsizing, you’ll need to think about how it affects you, your employees and your clients. There are several legal steps that you’re going to have to take, and having guidance behind you will help with this.