How To Get Your Staff To Help You Run A Profitable Business

Competition among entrepreneurs over the last 10 years has increased dramatically – due to various reasons.  The lure or  perceived “high-income”, the “freedom” of business ownership, and the sense of accomplishment derived from participation in the capitalist economy all complement each other to attract many to the industry.  With this information, some may wonder if the space is too crowded for additional participants.

Historically, business owners who try to do all things on their own - whether because they don’t trust others to do certain tasks or they just enjoy doing all tasks themselves, or because they don’t like the idea of paying others what they themselves can do without any financial outlay – place a cap on growth levels and, ultimately, “success” of their businesses.

Common reading and research among optimal business growth reveals that the level to which the business owner can concentrate on business development, branding, and overall growth will determine the level of financial benefits to that owner.  The obvious dilemma, of course, is that the owner needs to be hands on initially.  We assert that time spent performing business/administrative “tasks” means possible short-term growth, since they concentrate on everything, but eventually leads to limited growth.

So if the owner must reduce individual operational/administrative efforts in order to allocate more time to business development, won’t the end result be reduced revenue?

The answer is “no”.  In an optimally operated business, increased revenue can still coincide with business development.

In businesses that we have worked with, and which enjoy consistent growth, enjoyable working environments for employees, and overall financial success, we notice certain commonalities that, when considered practically, provide a clear understanding of what it takes for business owners to create and maintain optimally revenue-generating companies.

1. Empowering staff to cross-sell

Successful businesses invariably are built on various pillars, not the least important of which is the ability of the staff.  The importance of staff can’t be under-estimated.  We’ve seen practices that on paper contain all the ingredients for optimal growth, and except for sub-standard staff, they would easily achieve that growth.

Optimal staff are trustworthy, teachable, and will capitalize on a certain level of autonomy to contribute to the business.  This autonomy needs to be exercised in efforts to cross-sell your Company’s products and/or services.

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Marketing, financial, and even front office staff are in prime positions to cross-sell services because they are in front of potential customers..  They enjoy more face time with people, and should exploit this time by building trusting relationships through conversations with them and obtaining awareness as to what the prospect wants.  Through the exercise of knowing the customer the staff can correctly perceive needs that can be met through their office offerings, and in the process can increase company revenue.

2. Delegating cost-control efforts to staff and tying bonuses to cost reduction and maintenance.

Among successful businesses, the owner still has time to devote to overall marketing strategy and practice development.  Specific staff with ability are given responsibility for running administrative tasks – those items that are a “cost centre” for the business, and those who excel in this task are adept at comparing prices among potential vendors, and communicating with suppliers to ascertain the best ways to minimize costs.  Further incentive to pro-actively manage costs is provided by linking bonuses to cost cutting measures, which manifest themselves in higher margins and cash flow.  If the right staff are given this level of accountability, the results are higher profits, more positive cash flow and ultimately a more satisfied staff.

3. Morning meetings run by staff.

 If the right staff are given the task of managing morning meeting agendas, and are responsible for highlighting areas that need improvement, as well as championing efforts to increase revenues / decrease costs, they feel empowered and consider themselves more than just employees.

The morning meeting is the time to adjudicate special procedures, organize the daily work flow, forecast issues which may take up staff time, and recognize potential opportunities for cross-selling.  If the right staff are given leadership here to navigate the day and maximize efforts leading to increased sales, they naturally evolve into a team.

All business owners want their staff to be a “team”, but calling the staff a “team” and actually having them operate as one are two vastly different things.

The right staff must be given the correct amount of autonomy as well as the vehicles used to exercise it so that they can naturally evolve themselves into a team.  It’s the job of the owner to provide the forum within which the employees come together and join efforts to culminate in a level of performance that facilitates company growth and optimal experience for the owner, staff, and customers alike.

Underlying all this, however, is the responsibility retained by the owner to recognize talent and position it appropriately,  This cannot be delegated.  The owner is the leader, and if that owner wants to have a business where others merely perform compliance tasks, then the above is irrelevant.

Those who aspire to business growth, regardless of the competitive landscape, should understand that the road to business growth and success is built with strong staff who are correctly placed to fully exercise their gifts and talents.

Nicholas Kilpatrick is a partner at the accounting firm of Burgess Kilpatrick in Vancouver, B.C.  He specializes in helping his clients achieve corporate growth an maximize cash flow. You can reach him at  nkilpatrick@burgesskilpatrick.com or at 604-327-9234.