Selling is tough and collecting is even tougher for small companies these days. Mark W. Troy, CEO of $3-million Flywire, a Web-design company in Portsmouth, N.H., has gotten by with less cash thanks to a few informed reductions in Flywire's expenses.
To get an objective analysis of Flywire's cost structure, Troy retained a freelance financial expert (a former chief financial officer) whom he'd met through a friend. The CFO put Flywire on a cost-control diet: he found areas where the company could either trim financial fat or gain monetary muscle. Following the CFO's suggestions has enabled Flywire to stay solvent and maintain its margins at a time when many Web-design companies are struggling to do one or the other. The specific results of the regime -- complete with before-and-after snapshots and monthly "weight-loss" results -- are charted below.
Cost and Tactic
Before and after
Legal costs for drawing up contracts Used different firm
Before: $225 to $300 an hour After: $125 to $200 an hour