One Big Reward
A novel idea that can double your business
Sometimes the flywheel just needs a crank.
Imagine setting a big goal that would change your business and your financial future, and having your employees on board to help you achieve that goal.
Like doubling your revenue from $500,000 to $1 million. Increasing your number of customers from 100 to 200. Or taking your annual profits from $150,000 to $300,000.
Whatever your goal, it’s possible.
In fact, you might find that there is a lot of potential in your business that can be realized if you just dream a little bigger, and get your employees motivated to help you get there.
Here’s the idea: offer your employees a big and exciting reward for hitting a major business milestone.
That’s right, you can double your revenue or profits simply by offering employees a simple incentive. Of course, you need to have the right business, the correct conditions in place and the right timing, but this can energize and motivate all your employees, and make new business breakthroughs possible.
There are just 3 steps to action this idea:
- Set a big target for your business. Your target includes a number and a timeframe. It should be meaningful, but also achievable. One that makes a difference for you as an owner, and that employees will think it’s possible within the timeframe you set.
- Design your reward. Decide a reward that you think will incentivize your employees to get onboard. Make sure that the reward you offer still delivers you a great return on investment (e.g. the reward costs you $10,000 but the uplift to your profits is $100,000).
- Communicate the initiative to employees. Get your employees together and tell them about the target and reward. Make it fun. Set it as a challenge. Really take the time to engage them in the idea and earn their trust that you will deliver on the reward when the target has been achieved.
For example, a great target and reward for a small business could be:
- Target: Hit $500K in sales revenue this financial year, up from $400K.
- Reward: Dinner and cocktails at the best restaurant in town for all employees and their partners and spouses.
Notice the sales uplift is $100K and the reward might cost $1-2K. So at a 20% profit margin, the $20K profit uplift well and truly pays for itself.
The best thing is that the sales uplift might then last for years to come, depending on your line of business. So you'll reap ongoing dividends for a one-off cost.
For a bigger business a great combination could be:
- Target: Hit $5 million in profit within 3-years, up from $4 million.
- Reward: Holiday to a tropical destination for all employees and their families.
That's $1 million additional profits in Year 3 (and all the increases before and after) for a total cost of maybe $50-200K. Win-win.
Make sure that you, a) choose a target that employees have influence and control over, so they can pull the levers required to hit it, b) assess when the right conditions are in place and there is an opportunity in the market to attract new customers, increase sales or profits and, c) when the time is right and there are not other priorities or issues in the business.
This idea can lead to big results for your business.
Worse case scenario, even if you get 50% of the way towards the target, you and your business will be in a better position. You might (and probably should) still decide to give your employees the reward anyway. It’s probably worth it ten times over.
You made it to the end! Here’s a surprise 🎁
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