Cost Control;

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If you don't own a piece of the company, you tend not to lose much sleep over runaway costs -- which is a problem for those who do own the company. But Philip Edelstein has found a way to make his employees care about cost control, and he's done it without giving up equity in his business, Danbury Plumbing Supply Co., in Danbury, Conn.

Every month, Edelstein posts a chart of the company's gross sales and expenses. He also puts 15% of profits into a "mini-bonus" pool. The bonuses are then distributed each month to all 20 employees, using a formula that takes into account their salary level and seniority. Edelstein says that, "about five minutes after I started it," employees began turning out lights and closing doors. The company's warehouse is now warmed by two big heaters, instead of seven. "It can be 45 degrees in there, but they don't mind," he says, "because they know it will come back to them."

Last year, Edelstein handed out about $100,000 in mini-bonuses. Meanwhile, employee productivity has soared. Danbury's sales per employee are about $400,000, twice the industry average.