Layoff Alternatives

First do a cash-flow analysis. Then consider cutting benefits, mandating furloughs, and negotiating lower rent with your landlord, among other measures

As the recession continues, many small businesses are looking for ways to cut costs to meet their budgets. Although employee expenditures can be among the largest companies' face, there are alternatives to layoffs, says Michael Eisenberg, a Los Angeles accountant and member of the National CPA Financial Literacy Commission. He spoke recently to Smart Answers columnist Karen E. Klein about alternatives to downsizing. Edited excerpts of their conversation follow.

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