If you’re running a wildly successful and profitable business don’t hide it. I talked to a business owner from Las Vegas once and he was nervous to let his employees know how much money he was making. He said, “Oh no, I wouldn’t want them to know how much money I make.” I said, “Dude, you get driven to work in a 40-foot limousine and have two private jets. Your staff get it!”
Sharing a percentage of a company’s profits with employees is great, but employees have to earn it and treat profits they same way owners do otherwise you’re wasting it.
Every month get all the employees to meet and review the Income Statement together. Look for and obsess as a team about how to make more money and how to save money on the business. I learned this process twenty years ago running a painting business. I’d hired nine of my friends and they all hated me because I seemed to be making all this money. The reality was I hadn’t started making money yet! They knew what my revenues were, but they had no idea what my expenses were, and that meant that they all thought that I was making more profit than I was. So, when I started to show them that I wasn’t making any money they got scared for me, they got scared for themselves, and thought “Hell, if we don’t get this guy to grow a little bit more and save some more money, and help him be profitable we might be out of a job part way through our year.”
Give employees a percentage of the profits and watch how much more money you’ll start to make.
Jack Stack has a program about this called the Great Game of Business.