Painless cost cutting: smaller digs and a little austerity.

• Author: Sergeant, Deborah Jeanne
• Position: GENERAL BUSINESS

Whittling down overhead can help your company stay lean and survive during the recession and also thrive once the economy bounces back. It doesn't have to involve eliminating benefits, laying off staff, or lowering your company's quality of services or products. Before taking those drastic measures, try these ideas instead.

Move

Decrease your company's physical footprint. Consider relocating to a smaller space or, if possible, subleasing part of your space to another business. Eliminate junk around the workplace and go paperless to save space (another bonus: you won't buy so much paper and your operation will become more efficient) in your new, smaller digs. Allow as many employees to work at home as possible.

Lower your rent. Really! Some landlords who are desperate to retain a good tenant will happily give you a small reduction in rent if you sign a long-term lease. If your business is stable and not likely to require a move in the near future, this option can save you a bundle. It never hurts to ask.

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LEASE EQUIPMENT

Consider leasing some equipment. "Depending upon the type of equipment, it might make sense to lease and not buy," said Ann Campbell, owner of Aurora Consulting in Anchorage.

Take care of your assets so they last. Many times, repair and maintenance cost less than replacement. Closely monitor these expenses so you can estimate when it's a good time to unload equipment that's becoming too costly to keep, for example.

"An annual assessment of your information technology needs is essential for keeping your business running as efficiently and effectively as possible," said Richard Hazen, president of Educational Management Associates in Anchorage.

Equipment that needs habitual, expensive repair or frequent replacement is usually more cost-effective to obtain as a lease instead of purchase.

PURCHASE SMART

Buy the right software and hardware for your company's needs. "[It] will be an asset not only to the company, but also to the employees and clients," Hazen said.

Share supplies and equipment. Does every employee really need his own subscription to your industry's trade publication? Could an entire floor or department share larger pieces of equipment? As long as redundancies do not hamper efficiency, eliminate them.

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Simplify the purchasing process. One tactic could be having one individual order supplies so it's not an ordering free-for-all.

"You can spend a lot on office supplies and...