Making financial decisions is one of the important aspects in any business setting. Business managers, owners and even employees have to make this type of decision just to ensure the company’s survival. Everyone has to be smart about financial decision or at least properly streamline the implementation for monitoring and have the right feedback in case something is wrong about the financial decision.

Financial decisions, especially during these times are always difficult. The decision to spend money is very dangerous nowadays because operations could become unstable which means the resources that will be spent will reach an ROI fast. But the difficulty is not just based on the expenses but also on the result on the said expenses.

The main reason that businesses are cutting jobs today is that they are unable to keep the manpower because their earnings is not at par with their spending on manpower. Terminating employees as a business decision is part of the difficult financial decision.


Before making any financial decision, everyone has to be included or at least informed before any decision is taken. This is highly encouraged in a small business setting as people in this size of business do care enough for the welfare of the business.

In a large business setting, the managers would have to deal with this decision who will, in turn, provide the data to employees. Without proper consultation, it would be easily for the owner or managers to end up with a bad financial decision even if the intentions are well and good.

But that does not mean that every financial decision has to be dealt by everyone. Common sense suggests that the small things will be left to those in charge with the finances. Part of the responsibility of the owner or manager is to double check if these small spending are according to the company interests.

Coming Out with a Bad News

No one likes bad news but that does not mean everyone would just have to be kept in the dark if bad things happen to the company. It is always a better business practice to tell the employees in an outright manner about the problem rather than letting them know about it through rumors.

In these tough economic times, it is very easy to point to recession as the problem. But they could be abused as businesses could just point to recession even though the cause of the problem is bad business planning.

When bad news is expected, businesses have to be bold enough to point to a specific reason aside from recession. The string of events both controllable and uncontrollable could be specified so that clear understanding of the situation is achieved.

Job Loss

One of the most difficult tasks in a business setting is when you come out and tell everyone that there will be job cuts because the company is unable to support its employees. When a company terminates some of its employees because of business decisions, it will not only impact the company’s image but will also impact the employees, terminated or not. For that reason, business owners and managers have to be very careful in handling this type of news. Like most of the news, it should be given straight and direct.

But before you go out with the news, be sure everything is in place – the severance package and assistance after termination should be part of your information. Without these additional data, you can expect that job termination will be met with dispute and could cause further damage to the company.