Leadership
How to prevent immediate layoffs when the business faces challenges?
Nemanja Cedomirovic-July 23, 2024-2 min read
Have you been affected by the recent wave of layoffs? What interests me more is what the situation looks like from the employer's perspective.
Common mistakes company owners make
- Companies run by the "Serbian boss" principle - the boss takes the largest cut regardless of consequences.
- Outsourcing companies operating on very low margins, hoping to catch one large client.
- No cash reserves - business runs month to month.
- No one-year planning; everything is short-term.
- All eggs in one basket - no diversification.
- Not optimizing existing work; instead bringing new people and working inefficiently.
- Too many people on the bench.
What we do at Growit
- Positive cash flow for at least 6 months in advance.
- One or two cash loans (not activated) as a quick cover.
- Several financial scenarios - we call them DEFCON states.
- Constant optimization of work and utilization in the 50-70% range.
- Deep partnerships and contracts that bring long-term stability.
- Target EBITDA around 20%.
- Working with both SME and BIG segments - not just one industry.