And cutting costs quickly is vastly preferable to doing so slowly. "I have a client whose uncle is on the payroll and is close to retirement age," Siegel says. "He's not productive. But my client doesn't want to tell his uncle not to come to work tomorrow, even though he'll clearly get to that point." The sooner you make the tough decisions, the bigger the payoff.

Bartering to curb spending
On another front, small businesses are turning increasingly to barter transactions to curb their spending. "It's a great way to conserve cash," says Becker.

And it provides benefits even outside of recession. "More companies realize success is difficult to achieve in isolation," she says. "Building alliances with companies which may be competitors through creative means such as barter becomes an investment in your future."

Startups can also minimize costs by finding the lowest-price vendors for expenses such as a logo and business cards, phone service and setting up a Web site.

"That's a strategy you can pursue to keep your costs in the hundreds of dollars as you put up your shingle," Sloan says. His Web site, Startupnation.com, has a section to guide new businesses to the cheapest vendors for these services.

One area where you shouldn't trim expenses is marketing, says George Cloutier, chief executive of consulting firm American Management Services in Orlando, Fla. "The tendency during tough economic times is to cut marketing," he says. "But increasing spending in that area or just changing employees' roles to focus more on marketing can pay big dividends in the form of stronger sales."

To be sure, it may be possible to ramp up marketing efforts without doling out more money. "Thanks to the revolution with the Internet, there is an abundance of new ways to get your product into the marketplace without having to do the old-school media buy," Becker says.

Acquiring customers
In terms of increasing revenue, the artistic side of the income statement as Siegel puts it, he and others have several suggestions. "In this climate because big businesses are suffering, their quality might slip," he says. "There may be an opportunity to acquire customers unhappy with their existing providers."

Building loyalty among your own customers is crucial during a recession. "There are things that may not make you money immediately, but the economy will be more robust one day," Sloan says. "The more you ingratiate yourself with customers now, when they start spending freely, it will work out well for you."

He recommends providing freebies. "For example, if you're a consulting firm and have open hours, you may as well give them away. Customers will love you."

Choosing the right products to sell also can make a difference. That's because consumers often substitute a cheaper product for a more expensive one during recessions.

"For instance, people might cut back the number of steak dinners that they eat out," Shane says. "But because they still want to treat themselves, they increase their purchase of cheaper foods, like pasta."