Small businesses 'look to cut costs during credit crisis'

As the credit crisis continues to make its presence felt on American firms, an increasing number of owners of small businesses are reportedly looking to cut their costs.

Rising numbers of small businesses are considering outsourcing as a means of getting to grips with cash flow and sustaining a healthy bottom line, CNN Money reports.

Tessa Luu, the owner of the InsideAvenue furniture business in Los Angeles, was one of those revealed to have done this. Claiming to be tired of the impact increasing salaries, utility bills and rent had on profits, it was shown outsourcing had helped her to reduce operating costs by some 75 percent.

However, she stated that outsourcing is not a quick fix solution to small business, as there was a significant amount of time and money placed into getting the right firms to look after her programming and data entry requirements.

Ben Trowbridge, CEO of Dallas-based consulting firm Alsbridge, said, "It's classic for small businesses to outsource in waves. Because the current financial crisis is acting as a catalyst for companies to seriously consider outsourcing, we are riding that wave."

Meanwhile, David Zahn, COO of Consero Global Solutions, told the news provider that outsourcing can help to ensure that "employees can freely engage in strategic work that will keep the business alive."

A recent article in Forbes.com revealed that small businesses are taking a number of steps - including increasing efficiency and responding to customer feedback - to survive through the financial crisis.

Owners of small firms looking to finance taking their next commercial step might want to consider applying for a business loan.