Also involve your staff in cutting the cost of employee benefits without compromising the quality or scope of coverage.  For example, one entrepreneur who pays for employees' child care asked them to choose more economical facilities whenever possible.  Many small company owners take pride in offering health care insurance, yet the costs may be crippling when business is slow.  Rather than reduce or eliminate health care, investigate using a local HMO or clinic for all out-of-hospital services, or band together with other employers to get a lower group insurance rate. 

Reduce training costs by providing incentives for employees who are willing to upgrade their skills at their own expense.  A Denver, Colorado company permits such employees to take some or all of the training time off at full pay.  The firm insists that courses be of professional quality and relate to current work, or to work into which the employee can eventually grow.

Next look at your cost of facilities.  Compare your rent with what you might pay if you moved, and then ask your current landlord if your lease can be renegotiated.  If you are willing to sign a longer lease, you may get a price break now or have the rent forgiven or deferred in your slowest months.  If you decide you must move, look for a new landlord who will pay off your current lease and cover your moving expenses.  Also consider shrinking the area you occupy and subleasing some of the remaining space.

If you own your building, ask your banker about refinancing at a lower interest rate or over a longer term.  Either option will reduce your payments.

Combine forces with non-competing businesses to share expenses.  In Marietta, Georgia, five small lighting companies with non-competing products share showroom, receptionist and office costs.  They cover each other's sales areas, brainstorm together before bidding on big contracts, and help in answering technical questions.

Shop for cheaper insurance -- the rates vary widely, but so do the products and services when it comes time to make a claim.  Know precisely what you are getting in a particular policy, and deal with an "A-" (or better) rated company.

How you heat and cool your office and work space can also make a difference in your overhead costs.  Questioning abnormally high bills, adding insulation, replacing old air conditioners with high-efficiency models, and wrapping hot water heaters, are steps that work for businesses as well as homes.  Converting to fluorescent lighting will garner considerable savings; but do invest in fixtures that provide even lighting on work spaces and don't cause glare.  It's pointless to save money on lighting only to increase your labor costs because of fatigued and inefficient workers.  And don't forget to call your local utility to see what programs and financial incentives it may be offering to increase energy efficiency.