TriNet, an HR outsourcing firm, recently invited two of its customers, both CEOs of small, entrepreneurial firms, to participate in a Webinar, sharing their strategies for survival in a recessionary economy. The session was moderated by Burton Goldfield, CEO of TriNet, which provides payroll services, recruitment, benefits administration, and other HR services to some 8,000 such firms.
The first speaker was Ron Fortune, CEO of Education.com, a Web-based resource for parents that provides detailed information about all schools in the U.S., guidance regarding gifted students, and other educational services. It employs 24 people and was founded in 2006. Fortune described having planned for layoffs, which turned out not to be necessary. Other strategies included postponing raises for staff, carefully watching the firm’s spending, and using quarterly milestones to guide Education.com’s investments.

By investments, he meant capital expenditures for infrastructure and services that create fixed costs. To control those costs, Education.com outsources legal services and software engineering, as well as using TriNet for HR. And, “Metrics matter,” Fortune stressed, explaining that the firm ongoingly monitors its own performance in at least 70 ways. For example, it tracks traffic to its website and has implemented a variety of tactics to increase that traffic through search engine optimization. Fortune’s final piece of advice? “Don’t overreact in a crisis”—such as by doing layoffs in anticipation that you’ll need them, when you might not.

TriNet’s other presenter was Daniel Stockman, CEO of i-Tech Support, Inc., a 10-year-old central Florida firm that provides virtual IT departments for fellow small businesses. Services include technical support, help desk, and network design and support. Stockman reported that when sales to new customers began to slow, he and his colleagues concentrated on selling more services to existing customers. Here are more of Stockman’s techniques:

Renegotiated the firm’s building lease and its broadband contract
Delayed pay increases but implemented a form of pay-for-performance
Ramped up sales and marketing with social media, mailers, events, and webinars
Leveraged its partners, for example by splitting the costs of shared events
Found 90-day credit terms
Is sticking with its core competencies to avoid spreading employees too thin
Stockman also believes that encouraging employees to be involved in the firm’s community services helps to boost morale and loyalty.