Entrepreneur Sergey Fedorinov, a co-founder of a business startup and development company, shares his experience.
Saint-Petersburg TV Channel continues telling how St. Petersburg business circles cope with the crisis and overcome the problems they are facing now using their experience in previous periods of economic downturn.
In this issue of Business St. Petersburg, Sergey Fedorinov, a co-founder of a business startup and development company, has shared his story.
He believes that frankness and honesty with both employees and partners is the best policy in a crisis.
Sergey Fedorinov, entrepreneur, co-founder of a business startup and development company, tells: ‘I had a case at the start of 2009, when my then project Ulmart was in a start-up phase with just several dozens of employees. And with the crisis onset we understood that we were running out of money that we invested to start the project.’
‘First of all I spoke to the then few employees explaining the situation to them. I said, I am asking you to help rescue the company, if you can and wish to. If you agree to accept a 30 percent salary cut, this will give us the cash flow we need to keep the company going.’
‘Of course, I understood that the employees could say, no, that’s your problem, and leave. It took me some three days to brace myself and come out with this speech. But it was the right decision, and most of the team supported it and decided to take part in rescuing the company. And it did help rescue the company.’