Cutting Costs

November 05, 1990

* Trim staff. Cutting jobs is a quick way to lower costs for salaries, insurance and early retirement benefits. To avoid layoffs, try splitting shifts or cutting work hours.

Renegotiate leases, which often are a company's largest monthly expense. Consider consolidating branch offices. Other savings: cutting back on nightly cleaning services or sharing receptionists with neighboring offices.

* Go through expense sheets item by item. Trim inventory. Consider selling off company vehicles or mothballing them. Evaluate items such as overnight mail and travel.

Show leadership. If you're cutting employee salaries by 5 percent, take a larger cut yourself. Let your employees -- and bankers -- know about company problems. Ask employees to suggest cost-savings.

* Don't overlook offensive strategies. Consider strategic alliances with competitors. Reacquaint yourself with old customers. Look for new markets for your products and services.

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