Each project arrives with its purpose, milestones and first tasks written out. Here is how the first three read.
Written case for why a layoff is on the table
Founders often drift toward cutting staff on a bad week's feeling, then struggle to explain the decision to the board, the team or themselves. Writing one page that states the problem, the numbers behind it and what happens if nothing changes forces the question into the open. If the page cannot make the case, you have saved yourself a mistake; if it can, every later step starts from the same facts.
First tasks
- Pull this month's bank balance and last three months of spend into one sheet
- Write the trigger for considering cuts in two sentences
- Describe what the company looks like in twelve months with no change
- Ask a trusted founder or adviser to challenge the page
Alternatives to cutting staff tested first
Teams forgive a layoff more readily when they can see the founder tried everything else first, and sometimes the alternatives are enough. Listing and costing the options that do not remove people, from a hiring freeze and vendor cuts to temporary pay reductions and reduced hours, shows what each would save and how fast. The result is either a layoff avoided or a layoff you can explain honestly.
First tasks
- Export the last three months of card and bank spend by supplier
- Mark every subscription and contract that could end within 30 days
- Cost a hiring freeze, pay reductions and reduced hours separately
- Write a short verdict on whether the alternatives are enough
Fully loaded cost of every role
Salary alone understates what a role costs, and a cut planned on salary numbers usually saves less than promised. Building a sheet with each role's salary, employer taxes, benefits, equipment and software seats gives the true monthly cost, and setting that beside likely severance shows when a cut actually starts saving cash. Without it, the board will ask a question you cannot answer.
First tasks
- Export the last payroll report with employer costs included
- Add benefits, seats and equipment to each role's row
- Model three cut scenarios with severance and notice included
- Restrict the sheet to the founders and finance lead
