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I work for a company that is having some cash-flow problems. We recently did a large round of lay-offs in which we "trimmed the fat," but we are still looking for and hiring quality people.

The problem is that we're nowhere close to break-even and, although we have a large untouched line of credit, I am getting very concerned about the company's viability.

I am not worried about my job - I'm sure that I would be close to the last to go if more lay-offs did have to happen - but I have lost a very significant amount of money on paper as the stock price has plummeted and I have equity in the company.

So my question is... What does one do in a situation like this? I don't want to start looking for another job but I want to have my ducks in a row if I do have to. Should I start sending out my resume, or contacting recruiters to "check in," or just start trying to make contacts?

I do believe in the long-term viability of the company based on its business plan and current operations, however there are other factors at work here, and I want to hope for the best while being prepared for the worst.

gfg1's picture

I guess my question would be: how much control do you have in the direction / success of the company?

If you are at the mercy of management, it may be time to look. I was with a company over 15 years and felt really safe--until I came in and my department was shut down and I was let go.

Unless you have some direct control in getting the company out of the mess it is in, you owe it to yourself to be prepared for the worst.

wendii's picture

Hi

Have you listened to the managing during M&A casts? It's not exactly the same situation, but I seem to remember there was information in there about dealing with the uncertainty.

http://www.manager-tools.com/2006/08/managing-during-mergers-and-acquist...

http://www.manager-tools.com/2006/08/managing-during-mergers-and-acquisi...

There's also strategic thinking and layoffs, which may be useful:

http://www.manager-tools.com/2005/11/strategic-thinking-and-layoffs/

http://www.manager-tools.com/2005/11/strategic-thinking-and-layoffs-part-2/

Wendii

escuccim's picture

I do have a great deal of control over what the company does, however the issues that are causing problems are out of my control. Management wants these problems to be worked out as much as I do, probably even more, but at this point it's beyond our control.

Management owns about 55% of the company and I own a small percentage as well.

I have listened to the M&A casts but it was a long time ago. I should probably go back and listen to those again. An M&A situation would actually be a pretty good solution to the current problems.

Mark's picture

1. Get your resume current now.

2. Reinvigorate your network.

3. Speak up for what you believe is the best course of action. You're an owner, too.

4. Offer resources to address the problems.

5. Conserve cash at home.

6. Work your tail off, and

7. Be ready to move.

escuccim's picture

That is pretty much exactly what I am doing. I'm getting my resume ready, reaching out to contacts, trying to cut expenses at home, working longer hours. And I make it very clear what I think the proper course of action should be and if they had listened to me in the first place we wouldn't be in this situation now.

Thanks!

[quote="mahorstman"]1. Get your resume current now.

2. Reinvigorate your network.

3. Speak up for what you believe is the best course of action. You're an owner, too.

4. Offer resources to address the problems.

5. Conserve cash at home.

6. Work your tail off, and

7. Be ready to move.[/quote]

vinnie2k's picture

[quote="mahorstman"]1. Get your resume current now.

2. Reinvigorate your network.

[/quote]

Aren't those quarterly managerial duties anyway? :-)

Mark's picture

Yes, and all systems decay. :wink:

Mark