Are You Sharing Your Financial Statements?

A business is often more successful when owners are open and honest about their finances. Many of our industry’s business coaches guide shop owners to get their financial statements in order, then show and teach financial responsibilities to every team member. Show them the numbers. Here are five reasons you want to share your financial numbers with your team.

1. Being open about money can help you get ahead financially.
   1. Everyone on the team rowing in the same direction
   2. The realization of the work it takes to create a profit so the operation can afford raises and buy new equipment. This is the ‘V8’ moment when your people learn
   3. Many team members, for the first time, will receive the biggest money lesson of their lives
   4. We have a Town Hall podcast called ‘Where the Money Goes’. There is also a download, of the slides, available on the show notes page HERE
2. Sharing financial information can provide a sense of shared responsibility for the group’s finances
   1. Everyone understands the universal goals and respects financial decisions
3. You can help other team members get into better financial shape by showing them the path to success.
   1. Providing the lesson on money management can assimilate into your teams’ personal life
   2. Many in your employ are not good with managing money
   3. Learning how to live within your means and saving for a rainy day, retirement, or for a child’s college is good personal discipline
4. When it comes to making major purchases, the team realized that a calculated ROI on a significant piece of equipment requires us to sell the work to pay for it. 
   1. A better understanding of the finances and a team decision gets more play for the ROI
5. Transparency helps unify the team and build a strong culture.
   1. Perform this exercise at least once a year and when hiring new team members