Real cost-saving strategies for small businesses are based on realism and execution. For example, for online companies that receive limited office visits, spending a large portion of their budget on office space and furniture wouldn’t be the best use of their money. Likewise, companies that are inherently computer-savvy should maximize their computer spending by building their own instead of purchasing the most expensive boxes. The same goes for telephones. Consider using Skype, which integrates both VoIP and chat, or other Internet phone coverage whenever possible.
However, the biggest expense in service companies is people. Hiring great people is the most cost-effective thing a company can do. Seek out and hire people with multiple skill sets and an entrepreneurial attitude. Also consider the “flat world” approach — having employees who work from home offices around the country or world. They are just as valuable and lower overhead costs.
Steve Mansfield CEO iLOR & PreFound.com Lexington, Ky.