Gary Kadi converted his business to an ESOP and shares high-level P&L categories with staff so they stop assuming he's loaded and start thinking like owners. When employees see where money actually goes, they act like entrepreneurs instead of spending like the boss is rich.
Chapters
So if your team assumes that you're rich, they're going to act accordingly. Now listen, I know this from personal experience that your team, this is across the board businesses, small businesses, probably more than larger businesses, but your team thinks that you're making actually more than you really are making. And I know this because maybe four years ago, next level practice, we became an ESOP company, which stands for employee Stock Option Program. We're employee owned, which has been really, really great. And it also meant that we started to do open book business. Now, I'm not necessarily breaking down every single detail on the P and L with the team, but I do categorize them into bigger buckets and then they see where our money is actually going. And why this is great is because a lot of times teams are aware of top line revenue, but that's not necessarily, doesn't necessarily equate to solvency in a business, which is your bottom line, the profit left over after overhead. Right. So when we did this and we actually started doing open book business, I was not yet CEO and I was like, oh, wow, we actually don't make as much as I thought we did. Which was really cool to see like the reality of what the business was at, how the business was actually operating. Right. So we want to figure out a way to have your team think like entrepreneurs, understand what's going into the business side of dentistry. When it comes to overhead without again, over sharing, you don't owe your team a financial confession. And we would recommend that you do owe them clarity about how a dental business actually works. This is again, how do you get them to think like an entrepreneur without them clearly wanting to be an entrepreneur?
