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 all on board to help you achieve that goal.
Like doubling your revenue from $500,000 to $1 million. Or increasing your number of customers from 100 to 200.
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 on board to help you get there.
Here’s the idea: offer your employees a big and exciting reward for hitting a major business milestone. 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. It should be meaningful, but also achievable. So it makes a difference for you as an owner, and employees will think it’s possible within the timeframe you set.
- Design your reward. Decide what reward you think will incentivize your employees to get onboard, and a reasonable timeframe during which the target can be achieved. 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 deliver on the reward when it’s achieved.
For example, a great target result and reward for a small business could be:
- Hit $500K in sales revenue this year, up from $300K.
- Dinner and cocktails at a fancy restaurant for employees and their families.
Notice the sales uplift is $200K and the reward might cost $2-5K. So at a 20% profit margin ($40K profit uplift) this 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.
For a bigger business a great combination could be:
- Hit $5 million in profit within 3-years, up from $4 million.
- Holiday to a tropical destination for all employees and their families.
You just need to determine whether you have the right business (employees have influence and control over key financial levers required to hit the target), when the correct conditions are in place (when there is opportunity in the market to attract new customers, increase sales or profits) and when the time is right (when there are not other priorities or issues in the business).
This idea can lead to big results for your business.
And you can do it with this one simple idea.
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 too!
Before you go...
We all know that small business is about doing the little things right.
The little optimisations, the high-impact tweaks and the 1% gains you can make to your business to make it a little better, a little more profitable and even a little bit more pleasant to run.
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