21 ways to cut costs

Question 1

Labor: 8 ways

Answer 1

1. Cross train workers
2. cut overtime
3. reduce employer 401k or 403b match
4. raise employee contribution to healthcare premiums
5. institute four 10-hour days instead of five 8-hour days
6. convert workers into owners (if they stake in the company they will work longer and harder and constantly think of ways to cut costs in ways they may not have done before)
7. contemplate layoffs
8. institute across the board pay decreases

Question 2

Production: 8 ways

Answer 2

1. invest in technology
2. consolidate production space to gain scale and create accountability
3. create flexible production liens
4. reduce inventories (just in time)
5. outsource
6. renegotiate with suppliers
7. consolidate suppliers
8. import parts

Question 3

Finance: 5 ways

Answer 3

1. have customers pay sooner
2. refinance your debt
3. sell nonessential assets
4. hedge currency rates
5. redesign health insurance