Jef Lippiatt
Jef Lippiatt Owner at Startup Chucktown

Asked this question on 4/8/16 -Human Resources

Would you take on debt to keep employees or let them go to save?

Hopefully, this is never a choice you have to make, but as an entrepreneur it is always a possibility. Would you feel more loyalty to your employees to keep them working (and working for you) or would you immediately look to cut costs to stay afloat without adding more debt?

Top voted answer
Steven Freeman

Steven Freeman Owner at

Top 10% Web Development

Adding more debt is very dangerous for very small business if you can't guarantee you'll be able to turn things around. Renegotiating with staff on reduced hours or otherwise would be a safer bet to mitigate your business through the turbulence. You can only be loyal to a point and it should not overshadow survival.

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James Huy Vuong

James Huy Vuong Owner at

Top 30% Sales and Marketing

Hi Jef,

No HR experts but if you have the possibility to stay viable by means of staying lean I would definitely entertain especially if you have used up all your buffers/reserves and if the likelihood and possibility of a business getting back up to speed due to the slowdown in the economy or for whatever reason is too far way in the distant future. For me, it would regretfully be to cut back. Nothing is permanent, only temporary.

Huy.

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