Battle of the fittest
Great Article Charles,
It's not really surprising that small/start up companies are very cautios of what the future holds and how the re-invest.
I can't say that I agree with finding top talent a concern, but I think the key factor here is compensation. If you want top talent, that has a price tag and many companies aren't willing to invest in it. I say "willing" versus "affortable" since if you have the right people, your business WILL grow, but if you seek to save on overhead, then you'll be short handed when the required skills are needed.
I do agree that utilizing social media as a channel for advertisement should be a priority, given that most folks today seek and find services by doing mobile searches, versus the convenation "reading the ads section".
Between Google Adwords, Craiglist and Facebook, and company can easilly generate sufficient lead that'll provide the cash flow for both sustainment and growth.