#392: If your backup plan is to lay people off, you don't have a plan. You have a gamble

Hiring someone isn’t just adding a name to a spreadsheet.

It’s asking a human being, with their own dreams and ambitions, families and mortgage, to  trust YOU with their future.

I’ve lost count of how many times I’ve heard:
“If we don’t hit revenue target, we’ll lay some people off.”
“If we lose our biggest client, we’ll just cut headcount.”
“We’ll staff up for growth, and if it doesn’t happen, we’ll scale back.”

As a CFO I know that’s what the maths says. And I’ve led many of those conversations because it was the only way to protect the business.

But it doesn’t make it right.

Redundancy isn’t just a cost-cutting exercise;  it’s devastating.
It can destroy someone’s confidence, destabilise their families and can take years to recover from.

So if your growth plan depends on people being expendable, you shouldn’t be hiring yet.

Instead, run your business in a way that if you hire someone, you know you can afford to keep them, even when things don’t go to plan.

✅ Build realistic financial plans. Stress test them. Don't assume everything will go to plan - it won’t!

✅ Grow from a profitable base - where you can already afford your new hires (not  based on the income you hope to get)

💥 Build cash buffers so you’ve got wriggle room  and time for your plan to work, and your first line of defence doesn't have to be cutting heads

💥 Consistency of marketing is everything to keep control of your revenue  - don’t hire unless you’re confident you can generate the additional revenue

💥 And focus on  PROFIT. It’s not a nice to have, it gives you strength, peace of mind, and breathing room. It allows you to stand by the people who trust their lives to you.

This is what I call Financial Leadership.

Understanding the real life consequences of your numbers and your decisions.

We talk a lot about culture, and putting people first.

But do we back it up financially?

I’d love to know what you think.