There are certain causes of terminating a business relationship. First, when a manufacturing business is no longer satisfied with the way his supplier delivers his orders.

An example is when there are delays in the delivery of his orders or error in shipping out the raw materials. Second, the price of the raw materials is too high for the buyer.

Naturally, the buyer will look for suppliers who will give them lower price quotations. The present economic situation is not good because of the fact that recession affects the entire United States and even countries in Europe.

Here is an example of a letter on how to terminate a business relationship.

SAMPLE

November 01, 2010

John Smith, Business Manager
Alpha-Omega Corporation
1234 Narrow Road
Rainbow, PA 10987

Anthony Grier
2345 Antioch Drive
Queens, NY 02345

Dear Mr. Grier,

In view of the losses our business incurred these past months, I am constrained to ask your kind understanding and consideration to terminate our business relationship. I am encountering strong business rivals because the price of their product are cheaper and delivered on time to the satisfaction of their customers. I am right now scouting for business establishment that can provide stocks which are cheaper and with a more reliable delivery service so as to compete with my rival. I can easily compete with them as long as my needs are met on time.

I know that you are aware of my previous complaints about the delayed delivery of my orders. I have sent three letters to your office regarding the delays. The delay happened not only once but four times in a month. All the stocks I ordered were not delivered on time. I have been a long time customer of your company. Your records will show that I always pay on time and I do not ask for any extension for me to pay the balance.

Business nowadays is really very competitive. My customers are also very demanding. If I deliver the goods at a later date, they will no longer order from me. Of course I cherished my business dealings with your establishment and if only you could provide my business needs in these changing times then I am willing to start anew with you and your establishment.

John Smith
Business Manager

Lay-off or temporary suspension or permanent termination of employment of an employee or group of employees is dreaded. No person in his right mind would want to be laid-off. Employment nowadays is a must.

People need jobs to have a decent wage. If an employee is a family man, it would really be difficult for him to lose his job. He would be thinking where he could get food to serve for his children.

That is why it is important for management to announce the lay-off in a nice way so as not to hurt the feelings of their employees.

The following is an example of a letter on how to announce a lay-off to your employees.

SAMPLE

December 01.2010

Alpha-Omega Corporation
1234 Narrow Road
Rainbow, PA 10987

Dear Employee,

Our company is now on the verge of closing. It is hard for us to generate income at this point because the demand for our product has slowed. Our production expenses continue to increase while our sales fail to generate. Many manufacturing business like ours have decided to close their establishments.

This global crisis has affected our revenue, yet our expenses continue to rise up. The officers of our company conducted a meeting to come up with a solution to this problem.

Our only option for now is either to close the business or to lay-off at least 20% of our employees. We have decided to do the difficult choice of having to lay-off some of our employees. Please understand that we do not have any other choice at this time.

It is a company policy and it is also in accordance with our company by-laws that those hired last will be the first affected. We are asking for your understanding. We know the pain of losing a job. You have been loyal to the company all these time.

Those who will be separated will receive all their benefits in full. The company will also provide separation pay to help. We assure you that if things will get better for our company, we will give notice our laid-off employees for them to come back and work here again.

Thank you for your attention and understanding.

John Smith
President-CEO

Date: _

To: _ (Employee)

We regret to inform you that your employment with the firm
shall be terminated on _, 19_, for the following reason(s):

_

Severance payments shall be made in accordance with
company policy. We advise you to plan for your future
insurance needs as the firm shall not maintain insurance
coverage for you beyond the date of termination.

Please arrange for the return of any company property in
your possession.

Again, we regret this action is necessary.

Very truly,
_______________________________