Small Businesses Downsize Real Estate, Save Money

JOYCE M. ROSENBERG

NEW YORK (AP) — There's a downsizing trend under way at many small businesses: Moving to smaller offices because of shrinking staffs and as more workers telecommute.

Owners say they're saving money on real estate, office furniture and other expenses by letting employees work from home or by using independent contractors who don't work on-site. And those who have cut staffers obviously don't need to provide space for them.

Adrienne Giannone, CEO of Edge Electronics, has turned seven salespeople in Texas, Florida and California into telecommuters, enabling her to shut those offices. That helped her to expand her headquarters space in Bohemia, on New York's Long Island, and hire more employees there.

"I'd rather keep my people and not spend the money on the bricks and mortar," said Giannone, whose company sells electronics components and displays.

The workers weren't sure at first about working from home, but Giannone said they soon realized they were saving money and time by not commuting. "There's a big savings overall," she said.

Like many other owners, Giannone found that the Internet made it easy to keep in close touch with far-flung workers.